Ørsted agrees first access to lower-emission steel plate from Dillinger

Danish clean energy group Ørsted A/S (CPH:ORSTED) has secured first access to lower-emission heavy plate steel from Dillinger for use in offshore wind foundations.

Under a memorandum of understanding, unveiled today, Ørsted will be offered the first production of lower-emission steel from the German steel plate maker, subject to availability and commercial terms and conditions.

Pursuant to a 2022 large-scale supply-agreement, Ørsted will buy significant volumes of regular heavy plate steel from 2024. The Danish offshore wind developer expects to be able to procure lower-emission steel made at Dillinger’s plant in Dillingen from 2027-2028.

According to the announcement, the agreement will help accelerate the decarbonisation of the steel industry, as well as give Ørsted the optionality to deliver on expected decarbonisation criteria in coming auctions, in line with the EU’s recently passed Net Zero Industry Act.

“With the support of the German federal government, we’re now investing in the transformation of our production facilities to be able to produce carbon-reduced steel from 2027 onwards,” remarked Dillinger chief executive Stefan Rauber.

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