New report: Offshore wind secures thousands of jobs
Every time one gigawatt of offshore wind is set up in Denmark, 14,600 full-time equivalent jobs are secured in Danish companies. This are the findings of a new study, which for the first time has examined in detail the national and local economic effects
A decision to invest in offshore wind is not just a decision to ensure a greener energy production. It is also a decision to secure thousands of full-time equivalent jobs for Danish companies.
For the first time, Danish Shipping, Danish Energy and Wind Denmark have studied what investments in offshore wind can create in terms of employment throughout the value chain - from production of the turbine to dismantling approximately 25 years later.
For a Danish offshore wind farm of 1 gigawatt, i.e. an offshore wind farm of the size of Thor and large enough to supply approximately one million households with electricity – will bring 14,600 full-time equivalents jobs to Danish companies. The 4,900 man-years will be directly related to the offshore wind farm, while indirect man-years associated with the offshore wind farm will provide approximately 9,600 full-time equivalent jobs.
The new study is the most detailed of its kind to date, and it also shows employment in various industries and in selected cities in Denmark.
“Once again, the figures clearly show that investments in green energy make a large and important contribution to the Danish society in terms of jobs in Denmark. Danish competences in offshore wind are world-leading, because we have a solid and complete value chain in Denmark to ensure a cost-effective and highly competitive extension with offshore wind - from planning and project design to the turbines have come to an end of their lives, "says Jan Hylleberg, CEO of Wind Denmark.
“Offshore wind has become a major business for the shipping companies, and close to 200 Danish vessels are engaged with offshore wind. This creates jobs in the Blue Denmark - not least in the peripheral regions, and we can now see that for every gigawatt of offshore wind that is set up, 1,400 full-time jobs will go to seafarers. It's already big, and it can get even bigger, "says Anne H. Steffensen, CEO and Director General of Danish Shipping.
“We now state that offshore wind must be Denmark's number one position of strength. Our maritime territory offers opportunities to produce endless amounts of cheap green electricity and power-to-x fuels for the benefit of Danish business and trade, of Danish job creation and of Europe’s entire green transition,” says Lars Aagaard, CEO, Danish Energy.
Foreign offshore wind adventure contributes in Denmark
Danish companies have more than doubled their turnover in offshore wind over the past ten years. In 2010, offshore wind amounted to approximately 20 percent of turnover in wind companies, and by 2020 that figure has risen to approximately 40 percent, while total revenue has also increased.
It is precisely investments in offshore wind abroad that can be very lucrative for Danish companies. An estimate shows that today Danish companies have a market share of offshore wind in the EU of as much as 40 percent.
The new report concludes that for every GW of offshore wind invested in Europe, 9,100 full-time equivalents will accrue to Danish companies when all effects are taken into account. And with the European Commission’s target of 450 GW offshore wind by 2050, the potential is huge.
Dynamic local effect
If you take a closer look at the report, you can read how the workplaces will be distributed to the already planned offshore wind farms Thor, Kriegers Flak and Horns Rev 3.
Thorsminde and Thyborøn are potential service ports for the wind sector. This means that i.e. technicians who will service the offshore wind farm will sail from the two ports that will be assigned the task. This will give between 50 and 75 full-time employees during each of the approximately 25 years, the Thor offshore wind farm is expected to be operational. That means between 1,300 and 1,800 man-years during the lifetime of the offshore wind farm.
If we look at the port of Rønne, they can look forward to employing up to 104 persons, when they become installation port for Kriegers Flak.
The report is prepared by the consultancy firm QBIS and funded by the Danish Maritime Fund.
- The employment effect of Danish offshore wind: For a Danish offshore wind farm of 1 GW, 4,900 full-time equivalents accrue directly to Danish companies. In addition, there are indirect and induced effects, whereby man-years for Danish companies increase by approximately 9,600 and the total effect will be approximately 14,600 full-time equivalents.
- Denmark is dominant in European offshore wind: A European offshore wind farm of 1 GW contributes approximately 3,100 man-years to Danish offshore companies. To this can be added the indirect and induced effects, whereby full-time equivalents for Danish companies increase by approximately 6,000 and the total effect is therefore approximately 9,100 man-years.
- Danish offshore companies have increased their turnover in offshore wind from approximately 20 per cent in 2010 to 40 per cent in 2020. In addition, the revenue of Danish offshore companies corresponds to approximately 40 per cent of the total investment in offshore wind in the EU in the last 10 years.
- The Blue Denmark is in a strong position in the offshore wind sector: During the lifetime of the offshore wind farm, it contributes to approximately 1,400 full-time equivalents – for seafarers alone. On top of that should be added a significant number of full-time equivalent jobs related to the maritime industry, Danish shipyards - and the Danish ports.