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US Wind brings in Spain's Haizea for Sparrows Point Steel monopile maker in Maryland

Maryland-based offshore wind developer US Wind has brought in Spanish foundation and tower maker Haizea Wind Group to manage its long-awaited Sparrows Point Steel manufacturing facility in Baltimore County.

US Wind, majority-owned by Italian energy firm Renexia, pledged the monopile and tower facility as part of Maryland’s round 2 award in December 2021 for its 808MW Momentum Wind project.

US Wind is also developing its 270MW MarWin array for the state.

The factory will be located on 100 acres (40 ha) at the Tradepoint Atlantic logistics hub in Baltimore County, site of Bethlehem Steel’s now shuttered Sparrows Point steel mill, once the largest in the world.

“The partnership between US Wind and Haizea to lead Sparrows Point Steel will create one of the premier offshore wind industrial facilities in the world,” said Jeffrey Grybowski, US Wind CEO. “Haizea’s depth of knowledge and expertise will cement Maryland’s role as a hub of offshore wind manufacturing in the US.”

US Wind said that the manufacturing facility would have a capacity of 100 monopiles annually and is part of the developer’s commitment to sourcing at least 19% of total procurement in Maryland for a total exceeding $570m.

Haizea Wind was only founded in 2017 but has been expanding rapidly with multiple acquisitions to become one of Europe’s major suppliers of offshore wind steel components.

Borja Zarraga, Haizea Wind Group’s CEO, said Haizea “is highly committed to this value-creation project for the industrial sector of Baltimore, the state of Maryland, and the US.”

Manufacturing tax credits

The move reflects ramping investment in the US offshore wind supply chain spurred by the advanced manufacturing investment credit included in the Inflation Reduction Act passed last year which offers substantial tax breaks for domestic component production.

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German steel component manufacturer EEW will soon commission a monopile manufacturing plant in Paulsboro, New Jersey, with contracts already signed with the state’s two developers, Orsted and Shell-EDF-owned Atlantic Shores. A partnership of Canadian tower maker Marmen and Dutch steel fabricator Welcon is building a tower manufacturing facility in New York for Equinor-BP's Empire Wind projects.

Starting the end of last year and continuing through 31 December 2032, domestically produced fixed bottom foundations are eligible for a tax credit of 20 cents per kilowatt of capacity, while towers would receive 30 cents. These amounts are multiplied by the rated capacity of each completed turbine.

Industry association the Business Network for Offshore Wind estimates that some $10bn in sector-related supplier contracts were signed last year alone towards meeting President Joe Biden's 30GW by 2030 capacity target.

Industry is awaiting guidance from the US Treasury Department on qualifications, including the use of American-made steel and union labour. Surging inflation and interest rates have likewise challenged investment into the industry.

US Wind confirmed that the facility is still in the detailed design and engineering phase and working towards securing the necessary permits for the site.