Analysis
December 23, 2025
Pause on 5 windfarm leases could threaten steel plate demand
Written by Kristen DiLandro
Demand for heavy steel plate used in offshore wind farms faces renewed uncertainty after President Trump paused leases for five offshore wind projects.
On Dec. 8, a federal judge struck down the president’s executive order to block wind development, deeming the order ‘unlawful.’ Trump then proceeded to pause leases to the offshore wind facilities.
Note that windfarms are intensive users of steel plate.
Steel crucial to windfarms
Steel is the dominant structural material used in the construction and operation of all modern wind farms. However, offshore wind farms, in particular, are highly steel-intensive.
Offshore wind towers are stabilized on the sea floor by jackets and pin piles made from steel plates and tubulars. The foundational structures are estimated to require ~800-2,000 metric tons (mt) of steel per turbine, according to SMU’s research. Offshore towers constructed from rolled steel plate consist of ~300-500 mt per turbine. Plate is essential for manufacturing electrical substations, which stabilize the power generated offshore in order to transport it to the onshore grid. Nacelle and mechanical systems (main frames, gearbox housing, and bedplates) consist of structural and cast steel.
The five wind farms with suspended leases are located along the East Coast of the US. Construction is underway at locations in Massachusetts, Virginia, New York, and Rhode Island.
Leases remain paused, not canceled, and no end date for the pause has been identified.
Trump administration policies on wind power
The president said that leases were paused due to national security risks. On Dec. 22, the US Secretary of the Interior Doug Burgum stated that the US Department of War outlined its concerns in classified documents.
According to statements on the Department’s website, unclassified documents have noted a prominent concern for “clutter.” Clutter, states the Department, results in radar interference due to “movement of massive turbine blades and the highly reflective towers…The clutter caused by offshore wind projects obscures legitimate moving targets and generates false targets in the vicinity of wind projects.”
“Today’s action addresses emerging national security risks, including the rapid evolution of the relevant adversary technologies, and the vulnerabilities created by large-scale offshore wind projects with proximity near our East Coast population centers. The Trump administration will always prioritize the security of the American people,” Burgum said.
Counterarguments
In a report by the Associated Press, national security expert and former Commander of the USS Cole Kirk Lippold countered the Trump administration’s national security claim.
In the AP’s report, Lippold stated that the leases were provided “following years of review by state and federal agencies.” The consulting agencies included the Coast Guard, the Naval Undersea Warfare Center, the Air Force and more, according to Lippold.
