Germany wants to reduce its dependence on China for wind energy components

Germany's Economy Ministry published plans Tuesday to diversify sourcing of key components used in offshore wind turbines mainly by 2035, to reduce dependence on China.

The government is implementing a "de-risking strategy" amid the geopolitical tensions between China and the United States, as well as after the Russian war in Ukraine triggered an energy crisis that highlighted the dangers associated with over-dependence on a single country for essential supplies.

In a recent press release, the Ministry of Energy said that wind generation plants out at sea need powerful permanent magnets with rare earths in order to optimize output and reduce maintenance. However, their scarcity poses a supply risk.

The Ministry of Commerce and Industry published a road map that outlines alternative options for sourcing permanent magnets, including Australia and Japan.

It added, "We aim to reduce systematically critical dependences from third countries, such as rare earths."

Germany is looking to triple its offshore wind power to 30 gigawatts, a sector which currently provides 5% of the country's electricity demand. This will help to reduce carbon emissions that are produced when fossil fuels used to produce electricity.

The ministry stated that China supplied 90% of permanent magnetics not only for wind, but also for electric cars, machine-building and military industries. It added that the roadmap was developed with domestic and European wind industries.

It was proposed to create new channels of procurement to enable 30% of permanent magnets to be obtained by 2030 and 50% by 2035 from alternative sources.

It said that this would include investment guarantee deals tied to long-term deliveries and new partnerships with nations such as Australia and Japan. Vera Eckert reported. Mark Potter edited the article.

(source: Reuters)