The Netherland-based Sif Group has won its largest contract ever for offshore wind foundations, raising the prospect of supply chain bottlenecks in Europe’s booming offshore wind sector.

Sif Netherlands, in a consortium with Smulders Projects Belgium, will manufacture all 190 monopiles and transition pieces for the Dogger bank A and B projects off the UK in the North Sea that have a combined capacity of 2.4GW.

The massive order requires the use of 260,000 tons of steel and is subject to financial close, which is foreseen later this year.

The contract shows the company’s leading position in the offshore wind chain, analyst from Clarksons Platou Securities said.

But they added: “It also illustrates the emerging tightness in that supply chain, as Sif is now fully-booked for 2021, and we expect they will fill up remaining capacity for 2022 and part of 2023 within 1H21.”

Sif Holding chief executive Fred van Beers unsurprisingly was pleased about the mega order from Dogger Bank joint venture partners SSE and Equinor, and didn’t mention possible supply chain bottlenecks.

“Through our facility at MV2 [Maasvlakte 2 in the port of Rotterdam] we are well positioned to serve the Dogger Bank Wind Farm project and we look forward to a continuation of the excellent relationship that dates back many years already,” van Beers said.

“With this biggest award ever to Sif, the projects still in exclusive negotiation and the strong tender pipeline, Sif’s mid-term order pipeline is now looking very robust.”

In the project consortium, Sif is responsible for the fabrication and supply of the monopiles and primary steel for the transition pieces, and for the marshalling of all foundation components at the port of Rotterdam.

Smulders will manufacture the secondary steel and assemble, coat and test the fully equipped transition pieces.

Production in the Smulders’ facilities in Poland and Belgium is slated to begin in May 2021.

Wind

Supply chain tightness looms as Sif wins largest offshore wind foundation contract ever