RWE Offshore Wind GmbH, a leading player in the renewable energy sector, has taken a significant step towards securing its future offshore wind projects in Europe. The company has inked a Capacity Reservation Agreement with Steelwind Nordenham GmbH, a subsidiary of the Dillinger Group, for the production of up to 300 monopile foundations. This strategic move comes at a crucial time when the offshore wind industry is facing tight market conditions for essential components.
The agreement outlines a substantial commitment from Steelwind to reserve capacity at its German monopile production plant in Nordenham. The initial phase of the contract covers 320,000 metric tons of steel, equivalent to approximately 200 monopiles, over a 24-month period starting in 2027. This provision alone represents a significant boost to RWE's supply chain security for its upcoming projects. Furthermore, the contract includes an option to extend for an additional 12 months, potentially adding another 160,000 metric tons of steel capacity, which could yield around 100 more monopiles.
Dr. Holger Himmel, CFO of RWE Offshore Wind, emphasized the importance of this agreement in the context of Europe's ambitious climate targets. He stated that RWE is actively contributing to the expansion of offshore wind power both in Europe and globally. The framework agreement with Steelwind is seen as a crucial step in securing the necessary production capacity for monopile foundations, which are essential components for offshore wind farms. Dr. Himmel highlighted that such agreements are vital given the challenging market conditions faced by the industry.
The monopiles produced under this agreement are earmarked for RWE's offshore wind farms scheduled for commissioning in Europe from the end of 2029 onwards. This long-term planning demonstrates RWE's commitment to sustained growth in the offshore wind sector. The company has set an ambitious goal of tripling its global offshore wind capacity from 3.3 gigawatts to 10 gigawatts by 2030, and this agreement with Steelwind is a key component in achieving that objective.
Beyond the core production of monopiles, the agreement offers RWE additional flexibility. It includes options for RWE to secure supplementary services from Steelwind, such as the delivery of secondary steel structures and the provision of storage and marshalling support. This comprehensive approach to supply chain management underscores RWE's strategy to streamline its project development and execution processes.
The partnership between RWE and Steelwind builds upon a foundation of experience and expertise in the offshore sector. RWE has established itself as a global leader in offshore wind, having commissioned 19 offshore wind farms over the past two decades, including six off the German coast. Steelwind, on the other hand, has been manufacturing monopiles and single-piece monopile foundations since 2014, with capabilities to produce units weighing up to 2,400 metric tons.
Jost Backhaus, Managing Director of Steelwind Nordenham, expressed enthusiasm about the agreement, describing it as a forward-looking step not only for the companies involved but also for Germany and Europe's climate goals. He emphasized that the large-scale cooperation with RWE highlights Steelwind's leading role in the production of offshore monopiles made from Dillinger quality steel. This collaboration between RWE, a renewable energy powerhouse, and Dillinger, Europe's leading manufacturer of heavy plate steel, represents a continuation of their long-standing partnership in driving the expansion of green energy.
