Germany’s Economy Ministry has released an impressive blueprint. By 2035, the U.S. Department of Energy wants to diversify the sourcing for critical touchpoints of the offshore wind turbines themselves. This program is a key step in reversing our country’s overreliance on China. Today, China has a stranglehold over this market, particularly in the production of permanent magnets needed for wind energy generation.
Germany has set goals to triple its offshore wind capacity. By 2030, the country aims to go from virtually nothing to 30 gigawatts (GW) of installed capacity. Offshore wind only represents 5% of Germany’s overall power consumption at the moment. Increasing this clean energy resource is a central pillar for reducing carbon emissions associated with fossil fuel-based electricity generation.
Addressing Market Dominance
In fact, China currently controls a hair-raising 90% monopoly of the global permanent magnets supply in all major industries. Germany’s Economy Ministry recognizes the threats of monopolistic control. In response to this, they have announced plans to establish new procurement channels that will procure 30% of all required permanent magnets from non-Chinese sources by 2030. The goal increases to 50% by 2035.
“Permanent magnets nearly all come from China, which also applies to the rare earths from which they are produced. We want to systematically reduce critical dependencies, for example on rare earths, from individual third countries.” – Germany’s Economy Ministry
This strategic pivot is a welcome response to the energy crisis exacerbated by Russia’s war on Ukraine. It showcases our fragility in counting on one country for life-saving materials.
Collaborative Roadmap
Germany’s Economy Ministry has drawn up a detailed roadmap. They created it in close consultation with their domestic and European counterparts in the burgeoning wind industry to steer the plan into practice. The plan ensures those investments are backed by long-term delivery contracts. New partnerships The partnership seeks to build new collaborations, with Australia and Japan identified as key targets for future partnerships.
These initiatives are designed to lessen our dependence on critical materials. They fit into a larger “de-risking” strategy meant to strengthen national security. By fostering a more diversified supply chain, Germany aims to ensure a stable and sustainable future for its wind energy sector.
Future Prospects
Germany’s ambitious plan to boost offshore wind development is impressive, especially when you consider its current portfolio of projects. Vestas recently completed a thrilling $1.6 billion order for 68 V236-15MW turbines. These turbines will be used in Vattenfall’s Nordlicht 1 offshore wind project, which is scheduled to be completed by April 2025. This project is a great demonstration of the nation’s continued investment in renewable energy infrastructure.
