Orsted and Dillinger Forge Partnership for Lower-Emission Steel in Offshore Wind Projects

By Editor


Orsted, a leader in renewable energy, has tied up with Dillinger, Europe’s largest heavy steel plate producer, in a significant move towards decarbonizing offshore wind infrastructure.

Orsted will be procuring lower-emission heavy-plate steel from Dillinger for its offshore wind foundations.

Orsted will have priority access to Dillinger’s lower-emission steel production, pending availability and commercial negotiations. These steel plates, integral to the construction of offshore wind monopile foundations, are earmarked for future projects. The transition to this lower-emission steel is expected to reduce process-related carbon emissions by approximately 55-60 percent compared to conventional heavy plate steel production.

This collaboration builds upon a large-scale supply agreement established in 2022, through which Orsted will procure significant volumes of regular heavy plate steel from 2024 onwards. This agreement secures a vital raw material for Orsted’s offshore wind projects. Orsted aims to source lower-emission steel from Dillinger’s plant in Germany starting from 2027-2028.

The long-term offtake agreement exemplifies Orsted’s commitment to leveraging its procurement scale and decarbonization efforts to drive sustainable solutions in the offshore wind sector. By providing early demand signals for lower-emission steel, Orsted aims to lower costs and future-proof the European offshore wind supply chain.

This partnership aligns with the EU’s recent Net Zero Industry Act, which mandates non-price criteria in renewable energy auctions within the EU. By investing in lower-emission steel production, Orsted positions itself to meet anticipated decarbonization criteria in future auctions.

Virginie Van de Cotte, Chief Procurement Officer at Orsted, emphasized the importance of long-term agreements in driving investments towards decarbonization.

Stefan Rauber, CEO of Dillinger, highlighted the significance of the agreement in supporting the climate and energy transition, expressing confidence in Dillinger’s ability to produce carbon-reduced steel from 2027 onwards with support from the German federal government.

Danny van der Hout, Chief Commercial Officer at Dillinger, thanked Orsted for their confidence in Dillinger’s expertise and product quality, emphasizing their commitment to expanding renewable energy with innovative steel products.

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