The construction of the world’s largest monopile foundation manufacturing plant has begun in the Netherlands. This comes approximately three months since the project’s final investment decision was taken in February.
The facility will be built on the 62-hectare Maasvlakte 2 site in Rotterdam. It will be an addition to Sif’s current facilities. Its initial manufacturing operations has set to begin in the second half of 2024.
Once operational, the new monopile foundation manufacturing plant in the Netherlands is anticipated to raise Sif’s annual production capacity to 500 kilotons. Additionally, it will improve its ability to produce 200 XXXL, 11-meter-diameter, 2,500-ton reference monopile foundations annually.
According to Sif, the design allows for future improvements enabling even bigger diameters. The business forecasts EBITDA of EUR 135 million in 2025 and at least EUR 160 million per year starting in 2026 once the enlarged production unit is completely ramped-up, which is anticipated in the first half of 2025. According to Sif, this results in three to four years of payback time.
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The monopile foundation manufacturing plant in the Netherlands
Sif’s current total order book stands at 662 kilotons. Two launching clients, one of which is Ecowende, a joint venture between Shell and Eneco, have jointly committed to 348 kilotons of production, either booked or in exclusive negotiation. The Dutch company will receive PEMA manufacturing automation technologies from Finnish welding expert Pemamek.
A Wet algemene bepalingen omgevingsrecht (Wabo); vergunning voor de activiteit milieu permission has been issued. This is in accordance with Dutch law, focusing on lowering nitrogen and CO2 emissions. Due to increased electrification of manufacturing and transportation processes and equipment, nitrogen emission, and deposition levels will be lower than present.
Regarding nitrogen deposition in protected regions, the Nature Conservation Act permit (the “Nature Permit”) will also be adhered to by Sif. Additionally, the new monopile foundation manufacturing plant in the Netherlands will use less gas per kiloton. Furthermore, it will only use green power provided by the on-site wind turbine. This will reduce Sif’s CO2 footprint per kiloton produced.