US offshore wind development could generate $42bn in demand for domestic steel over the next two decades, supporting 186,600 American jobs, new research from Oceantic Network shows.
The study, commissioned by Oceantic Network with Lumen Energy & Environment, said the demand would come from the construction of towers, foundations and vessels for offshore wind projects.
The research noted that five commercial-scale offshore wind projects currently under construction have already sparked tens of billions of dollars in domestic supply chain activity and supported thousands of jobs.
The analysis quantifies steel demand for 70GW of leased and proposed American offshore wind projects and matches it to existing and planned U.S. steel mill and fabrication infrastructure.
The study estimates that offshore wind could require 22 million tons of steel, equivalent to 239 Golden Gate Bridges or 266 Empire State Buildings.
It added that recent upgrades at U.S. steel mills enable up to 80% of the required plate steel to be produced domestically.
“By driving $42 billion in steel demand, a 22% increase from our nation’s energy sector, offshore wind gives U.S. steel mills the long-term, predictable orders they need while strengthening our steelmaking base, revitalizing shipbuilding, and anchoring thousands of durable, family-sustaining jobs in communities across the country,” said Liz Burdock, president & CEO of Oceantic Network.
“When we expand our offshore energy generation, we secure investments here at home, lower energy costs, enhance grid reliability, and ultimately improve the quality of life for all Americans.”