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Ørsted and Vestas, preeminent renewable energy producers have recently announced that they have entered into a commercial sustainability partnership.
As per the terms of the partnership, Ørsted obtain low-carbon steel wind turbine towers and blades made from recycled materials from Vestas and use them for their joint offshore wind projects.
The deployment of offshore wind is vital for providing energy security, affordable energy for all, and making an effort to combat the climate crisis. Even though wind produces energy with a 99 % lesser carbon footprint compared to coal, there is still a need to achieve net zero. That’s why, it is important for everyone, including renewable energy producers, to reduce the amount of carbon emitted from the manufacturing process of materials used in wind farms. Both consumers and policymakers are also strongly advocating a need for the same.
To meet the pressing requirements for decarbonization and circularity in the wind industry, particularly in relation to steel and blades, Ørsted and Vestas have partnered up for finding cost-efficient solutions. As part of their collaborative efforts, both companies want to prioritize the installation of low-carbon steel towers and, when they become commercially available, blades made from recycled materials in all upcoming joint offshore wind farms.
By making this commitment to sustainable procurement, Ørsted and Vestas are not only addressing the immediate challenges but also establishing a continuous demand for Vestas’ innovative, low-carbon, and circular solutions.
Here’s a snapshot of what the companies want to achieve:
- Ørsted and Vestas have set a minimum target of procuring and installing at least 25% low-carbon steel towers. Vestas has been at the forefront of cross-industry collaboration to ensure the availability of low-carbon steel for wind turbine towers. Through this new partnership, Ørsted and Vestas are sending a clear demand signal to the steel industry, urging them to accelerate the scaling of cost-competitive decarbonized steel for offshore wind. By utilizing scrap steel produced with renewable electricity on-site, carbon emissions from heavy steel plates used in towers can be reduced by up to 70%.
- Vestas, along with its partners in the CETEC project, has pioneered a breakthrough solution for circular blade recycling. This solution enables the breakdown of composite materials in both existing and future epoxy-based blades, with the recovered epoxy resin being reused in the manufacturing of new blades. This addresses a significant challenge in the industry, which is the recycling of blades that have reached their end-of-life. Vestas is currently scaling up the circular recycling value chain in collaboration with partners Olin and Stena Recycling. Once the technology is ready for commercial production, Ørsted will procure wind turbine blades made from recycled materials from Vestas, further supporting the scaling of this innovative technology.
- Ørsted and Vestas have been leaders in the renewable energy industry, driving sustainable growth in wind energy while achieving scale and reducing costs. They were the first renewable energy developer and manufacturer, respectively, to establish science-based targets aligned with a 1.5ºC trajectory for decarbonizing the entire value chain. Both companies have implemented industry-leading supplier decarbonization and engagement programs. Furthermore, they are committed to addressing the industry’s circularity challenge, specifically eliminating the landfilling of wind turbine blades. With their shared commitment to net-zero wind farms, Ørsted and Vestas are natural partners, driving the industry forward towards a sustainable future.
Biodiversity is also a key focus of the companies. Ørsted and Vestas aim to implement best practices, incorporate biodiversity considerations into their projects, and contribute to the overall sustainability of the industry.
Speaking about the development, Mads Nipper, Group President and CEO of Ørsted, said, “There’s no playing defence when it comes to climate change. And no progress without partnerships. That’s why we at Ørsted are very proud to partner with Vestas to integrate and scale cutting-edge decarbonisation and circularity solutions to meet future customer demands for net-zero wind farms. Together with Vestas, we’re leading the industry towards net-zero, and I urge decision-makers across the globe to also take action and help drive demand for low-carbon and circular solutions within renewable energy.“
Henrik Andersen, CEO of Vestas, added, “The energy transition requires unprecedented scale and pace, and we need strong partnerships between leading companies and industries to succeed. We are excited to partner with Ørsted to expedite the deployment of our cutting-edge circular blade recycling technology and foster the demand for low-carbon steel in the wind industry’s supply chain. This partnership is a leap forward for developing circular wind power projects and sends a powerful message that commercial agreements and collaboration are vital in our urgent fight against the climate crisis.“
