Ørsted Secures Initial Access to Reduced-Emission Steel Plate from Dillinger

Danish renewable energy conglomerate Ørsted A/S (CPH: ORSTED) has solidified its position by securing premier access to lower-emission heavy plate steel from Dillinger, a prominent German steel manufacturer, designated for utilization in offshore wind foundations. This pivotal agreement was unveiled today through a memorandum of understanding, signifying a significant stride towards sustainable energy practices.

Per the terms outlined in the memorandum of understanding, Ørsted will enjoy priority access to the initial production batch of lower-emission steel from Dillinger, contingent upon availability and subject to mutually agreeable commercial terms and conditions. Building upon a substantial large-scale supply agreement established in 2022, Ørsted is slated to procure substantial volumes of conventional heavy plate steel commencing from 2024. However, the Danish offshore wind pioneer anticipates transitioning to the acquisition of lower-emission steel produced at Dillinger's Dillingen facility by the timeframe of 2027-2028.

The announcement underscores Ørsted's commitment to expediting the decarbonization of the steel industry, aligning with its strategic objectives while offering flexibility to meet forthcoming decarbonization criteria in upcoming auctions, in accordance with the European Union's recently enacted Net Zero Industry Act. This collaborative effort is poised to contribute significantly to the reduction of carbon emissions associated with steel production processes, ushering in a new era of sustainable practices within the industry.

In light of the support garnered from the German federal government, substantial investments are being channeled towards the transformation of production facilities, with the aim of enabling the production of carbon-reduced steel by 2027. This ambitious endeavor underscores a collective commitment towards fostering environmental stewardship and embracing innovative solutions to combat climate change.

The steel plates procured through this collaboration will serve as integral components of offshore wind monopile foundations, positioning them for deployment in future projects. Furthermore, in line with prevailing technological advancements, the anticipated reduction in process-related carbon emissions from production is estimated to range between 55-60% compared to conventional heavy plate steel production methods. This significant reduction underscores the efficacy of sustainable practices in mitigating environmental impact and advancing the transition towards a low-carbon economy.

Overall, Ørsted's strategic partnership with Dillinger represents a significant milestone in the journey towards achieving sustainability goals within the offshore wind industry. By prioritizing the adoption of lower-emission steel solutions, Ørsted reaffirms its commitment to environmental stewardship and underscores its leadership in driving the transition towards renewable energy sources. Through collaborative efforts and innovative initiatives, Ørsted continues to pave the way for a greener, more sustainable future.