"The production of plates for offshore wind energy has increased nearly tenfold over the past eight years due to the expansion of renewable energy. We aim to become a globally recognized top-tier steelmaker in the European offshore wind market, leveraging our differentiated technology," said a representative from Hyundai Steel's plate development team during an interview with Aju Economy at the Dangjin Steelworks on October 8.
As investments in renewable energy grow worldwide, the offshore wind market is emerging as a new growth driver for the steel industry. The increasing capacity of wind turbines and the larger scale of installations have significantly boosted the demand for high-strength and ultra-thick plates. Hyundai Steel has proactively entered the offshore wind plate development sector, expanding its supply chain to major global turbine manufacturers and leading the market.
In the domestic market, Hyundai Steel has built a solid track record since starting the Jeju offshore wind project in 2017, securing contracts for key projects such as Yeonggwang Nakwol and Sinan Uwi. This experience has enhanced its export competitiveness, gaining recognition for its technology in overseas markets like Taiwan. Recently, it became the first Korean steelmaker to receive quality certification from Norway's DNV for ultra-thick offshore wind plates, with a maximum thickness of 133 mm, officially validating its technological capabilities.
Kim Young-woo, a senior researcher, noted, "The demand surged significantly from 2019 when the TPC (Taiwan Power Company) offshore wind project began, with inquiries for steel supply exceeding one per month from 2020 to 2022. We are currently conducting product evaluations for plate supply to Sif in the Netherlands, which will help us expand our presence in the European market."
With this growing demand, Hyundai Steel's production of offshore wind plates has increased approximately tenfold since entering the market eight years ago. Last year, the volume for overseas projects was significantly reflected, resulting in a 160% increase in production for export compared to the previous year, while overall production rose by about 50%, driving the growth of its offshore wind plate business.
Han Sung-kyung, head of the plate development team, stated, "To proactively respond to the expanding offshore wind market starting in 2024, a company-wide task force team led by the sales department has been established. Relevant departments are collaborating to optimize the existing supply chain to meet global customer requirements and strengthen it further. As a result, the scale of offshore wind project contracts has expanded to over 100,000 tons annually, and we have registered as a supplier for major wind turbine manufacturers such as Siemens Gamesa, Vestas, and Nordex, laying the groundwork for entering the European market."
Hyundai Steel's core competitiveness lies in its production technology for ultra-thick plates exceeding 100 mm. As the thickness of steel increases, maintaining uniform internal structure and mechanical properties becomes challenging. Hyundai Steel has overcome this challenge through in-house technology development, securing quality certification for ultra-thick plates up to 133 mm, establishing a foundation for supplying high-performance steel.
Lee Sang-hyup, a senior researcher, explained, "As turbine capacities increase, the structures supporting them are also becoming larger, and the thickness of plates, which was predominantly below 100 mm, is rapidly expanding beyond that. Ensuring internal integrity and uniform performance in thicker steel is crucial, leading to heightened demands for quality verification. Our DNV certification has validated our quality reliability."
Hyundai Steel plans to gradually expand its supply in the offshore wind market, considering the demand volatility due to varying national energy policies and project schedules. In the long term, it aims to develop offshore wind products into a core product line that holds a significant share of its overall plate sales.
The Hyundai Steel plate development team emphasized, "Our goal is to establish ourselves as a recognized material supplier in the European offshore wind substructure market, beyond the Asian market. We aim to contribute to the global offshore wind industry by securing technological competitiveness and reliability that surpasses global steelmakers, based on the quality data and supply experience we have accumulated."
* This article has been translated by AI.
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