Sif Unveils Plans for Monopile Recycling Factory, Signs ‘Green Steel’ Deal and Decom MOU with Dillinger to Make Monopiles Fully Circular

May 16, 2024, by Adrijana Buljan

Dutch manufacturer of offshore wind foundations, Sif, has revealed plans to build a monopile recycling factory as part of a goal to make monopiles fully circular. With the same aim, the company has also signed an addendum to its existing framework agreement with Dillinger to secure access to its lower-emission heavy-plate steel and a memorandum of understanding (MOU) to develop a foundation decommissioning process.

The MOU on developing the decommissioning process for offshore wind foundations was signed by Sif’s subsidiary Sif Decom and Dillinger, and marks the finalisation of a joint research project carried out by Sif, KCI, and Dillinger to produce a detailed design for a monopile recycling factory.

The Dutch company says the monopile recycling factory is designed to close the circularity loop by providing recycled steel as efficiently as possible for Dillinger’s low-emission steel production.

Sif Decom will now continue working to finalise the business case and once the investment decision is taken, Dillinger will be invited to actively participate in the monopile recycling factory, and in return will secure the high-grade steel output by it, Sif said in a press release on 16 May.

In the “green steel” addendum to their steel plate supply framework agreement, Sif and Dillinger have further detailed the transition to supplying green steel plates for Sif’s new XXXL monopile factory.

Sif made the final investment decision (FID) to build the extension to its existing factory in February 2024, allocating EUR 328 million to realise the project, for which the company says will make its Maasvlakte facilities the world’s largest monopile foundation manufacturing plant.

The first production line at the new manufacturing halls is expected to go into operation in July this year.

Dillinger has entered into several agreements revolving around low-emission steel production over the past year.

In March, the German steel plate manufacturer signed an agreement with Ørsted, under which the global offshore wind developer will be offered the first production of lower-emission steel from Dillinger’s facility in Dillingen for monopile foundations in its future projects, subject to availability and commercial terms and conditions.

Ørsted expects to be able to procure lower-emission steel produced under this agreement from 2027-2028.

As Dillinger works to further decarbonise its steel production, the company has entered into power purchase agreements (PPAs) with German offshore wind projects, through its holding company SHS – Stahl-Holding-Saar.

In April, SHS signed a 15-year PPA with EnBW for 50 MW of generation capacity from the 960 MW He Dreiht offshore wind farm in Germany. Last year, SHS signed a similar agreement with Iberdrola Deutschland for the Baltic Eagle offshore wind farm.