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Third Industrial Revolution Consulting Group<br />

turbine’s lifespan, resulting in significant reductions in CO 2 emissions compared to primary steel<br />

production.<br />

OFFshore Wind<br />

Two examples help illuminate the potential market for steel in the offshore wind market. In<br />

2002, the installation of 160 MW of offshore wind turbines at Horns Rev (Horns Reef) 15<br />

kilometers off the coast of Denmark required 28,000 tonnes of steel. That is roughly 175<br />

tonnes of steel per MW. By 2016, ArcelorMittal participated with Statoil and Siemens in the<br />

offshore 30 MW Hywind Park situated 25 km off the coast of Scotland. The six 5 MW turbines<br />

required 3,500 tonnes of steel, or 116 tons of steel per MW.<br />

The 2015 global 100% renewables energy assessment conducted by a joint team of Stanford<br />

University and UC Berkeley scientists, engineers and economic analysts calculated the global<br />

wind market opportunity over the next 35 years. 190 They assumed wind turbines located in<br />

roughly one-quarter (~27%) of the near-shore offshore wind technical resource potential. This<br />

amounts to 760,000 wind turbines (5 MW each), which would satisfy ~13% of total global<br />

energy consumption. The 3.8 million MW of installed offshore wind capacity represents an<br />

€11.7 trillion (2013€) global market opportunity. Assuming 100 tonnes of steel per offshore<br />

MW, suggests a global market opportunity of 380 million tonnes of steel worth a quarter trillion<br />

euros (2016€).<br />

There is also a circular economy crossover benefit of working with the concrete and cement<br />

industry in creating steel-in-concrete and steel-around-concrete foundations. As the World<br />

Steel Association spells out, “To improve durability and achieve longer-term strength, 70% of<br />

the cement in a concrete foundation can be replaced with ground granulated blast furnace slag<br />

(GGBS), a by-product from the steel industry. In many cement or concrete applications, this is<br />

the most cost-effective method for strengthening foundations because it adds no overall cost.<br />

Furthermore, compared to a foundation that does not use GGBS, it saves an average of 92<br />

tonnes of CO 2 per foundation manufactured." 191<br />

The circular economy is also facilitated by the reuse of 90% of the steel in wind turbines at the<br />

end of their 20 to 30 year lifespans, shrinking the ecological footprints involved in extractive<br />

mining, the amount of energy and water required in virgin processing, and levels of CO 2<br />

emissions, air pollutants, and wastes.<br />

190 Jacobson, Mark and Mark Delucchi et al. (2015) 100% Clean and Renewable Wind, Water, and Sunlight (WWS)<br />

All- Sector Energy Roadmaps for 139 Countries of the World, December 2015,<br />

https://web.stanford.edu/group/efmh/jacobson/Articles/I/susenergy2030.html.<br />

191 WSA (2012) Steel Solutions in the Green Economy, Wind Turbines, World Steel Association.<br />

225

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