SeAH Wind Loses Major Ørsted Contract on Teesside Due to Factory Readiness Issues
Teesside windfarm manufacturer SeAH Wind has lost its first major contract with offshore wind developer Ørsted after the two companies mutually agreed to discontinue monopile production for the Hornsea 3 offshore wind farm. This decision follows a shared assessment of factory readiness against the programme requirements of the project, marking a significant setback for the North East's green energy sector.
Joint Statement and Reasons for Termination
In a joint statement, SeAH Wind and Ørsted confirmed the discontinuation of monopile production for Hornsea 3, citing a mutual evaluation of factory readiness. The statement emphasised that this move ensures the project schedule for the world's largest offshore wind farm remains protected and uncompromised. It allows SeAH Wind to focus on delivering its secured order backlog through to 2027 and progressing future opportunities, highlighting confidence in the company's technical capability and long-term role in the UK and European offshore wind supply chain.
Background and Impact on the Green Energy Sector
The Ørsted deal was the first contract secured by SeAH Wind's Teesside factory, which began construction in 2022 with a £900m investment on the Teesworks site. Originally, the partnership was hailed as an industry-first, with business leaders praising it for contributing to the UK's goal of achieving 50GW of operational offshore wind capacity by 2030. However, this termination arrives more than three years after the initial agreement, raising concerns about job security and regional economic development. It remains unclear whether jobs will be lost due to the contract's end.
SeAH Wind continues to work on other projects, including the construction of monopiles for RWE's Norfolk Vanguard project this year. Meanwhile, Ørsted has received six monopiles for Hornsea 3 from Spanish partner Haizea Wind Group, produced at their Bilbao facility, which have already arrived at the Teesworks location.
Local and Political Reactions
Tees Valley Combined Authority declined to comment on the suspension. However, Ben Houchen, in a Facebook post last Friday, reflected on the progress at the SeAH Wind factory, noting its role in powering Britain's clean energy future and highlighting the visit from His Majesty The King a year ago. He emphasised the site's contribution to world-class manufacturing, serious investment, and well-paid jobs for local families, despite the current challenges.
This development underscores the complexities in scaling up offshore wind infrastructure and the importance of factory readiness in meeting ambitious green energy targets.
