Ørsted, the global leader in offshore wind, has solidified its partnership with Dillinger, the largest heavy steel plate producer in Europe. The memorandum of understanding (MoU) signed today marks a pivotal moment as Ørsted secures the first opportunity to procure Dillinger’s lower-emission heavy-plate steel for their offshore wind foundations.
Driving Decarbonisation and Supply Chain Resilience
The partnership aims to drive the decarbonisation of steel production, a crucial step in achieving sustainability goals. By securing the first offer of lower-emission steel through this MoU, Ørsted not only supports Dillinger’s efforts but also ensures resilient supply chains, sufficient steel capacity, and the flexibility to meet anticipated future customer demands.
Monopile steel foundations used for Ørsted’s offshore wind farm Borkum Riffgrund 3 in Germany
Advancing Green Technologies
The lower-emission steel plates, integral to offshore wind monopile foundations, are expected to reduce process-related carbon emissions by an impressive 55-60% compared to conventional heavy plate steel production. This move aligns with Ørsted’s commitment to sustainable practices and environmental responsibility.
Under a large-scale supply agreement initiated in 2022, Ørsted is set to procure substantial volumes of regular heavy plate steel from 2024, solidifying its position in offshore wind procurement. This strategic move provides visibility and access to a critical raw material while supporting Dillinger in accelerating investments in new lower-emission steel production.
Long-Term Offtake Agreement for Sustainable Solutions
The long-term offtake agreement is a testament to Ørsted’s scale in offshore wind procurement and its industry-leading decarbonisation efforts. This collaboration exemplifies how partnerships with suppliers can drive sustainable solutions, supporting the green build-out and fostering a stable supply chain based on environmentally friendly production methods.
This development comes in the wake of the EU’s Net Zero Industry Act, reinforcing the importance of non-price criteria in renewable energy auctions within the EU. Ørsted’s agreement with Dillinger positions the company strategically, not only contributing to the decarbonisation of the steel industry but also aligning with forthcoming auction criteria.
Industry Voices
Virginie Van de Cotte, Chief Procurement Officer at Ørsted, emphasizes the significance of long-term offtake agreements in decarbonizing hard-to-abate materials like steel. She states, “With this MoU, we’re pleased to help support Dillinger’s development of lower-emission steel facilities in Europe.”
Stefan Rauber, CEO of Dillinger, applauds the agreement, highlighting the relevance of German-made steel for the success of climate and energy transition. He expresses confidence in Dillinger’s ability to produce carbon-reduced steel from 2027 onwards.
Danny van der Hout, Chief Commercial Officer at Dillinger, expresses gratitude to Ørsted for trusting their expertise and the quality of their steel, recognizing the role of Dillinger’s innovative products in expanding renewable energy.
A Sustainable Future in Offshore Wind
Foundations contribute significantly to carbon emissions in an offshore wind farm’s life cycle, accounting for 21%. Ørsted’s commitment to reducing these emissions is crucial in achieving its 2040 science-based net-zero target. The agreement with Dillinger not only secures a sustainable supply chain but also sets a precedent for the industry, demonstrating the feasibility of lower-emission steel production.
