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Ørsted, a global leader in offshore wind, and Dillinger, Europe’s largest heavy steel plate producer have reaffirmed their partnership. Ørsted will have priority access to Dillinger’s first batch of lower-emission steel, pending availability and commercial terms. These steel plates will be integral to offshore wind monopile foundations for future projects. This partnership is expected to reduce process-related carbon emissions by 55-60% compared to traditional production methods.
In a comprehensive supply agreement established in 2022, Ørsted secured substantial volumes of standard heavy plate steel starting in 2024. This agreement provides Ørsted access to a crucial raw material in offshore wind, while also aiding Dillinger in accelerating investments toward new lower-emission steel production. Ørsted anticipates procuring lower-emission steel from Dillinger’s facility in Dillingen, Germany, by 2027-2028.
The long-term offtake agreement exemplifies Ørsted’s strategic approach, leveraging its offshore wind procurement scale, decarbonization efforts, and collaborative supplier relationships to drive sustainable solutions for green development. Such agreements, alongside regulatory support, play a critical role in reducing the cost of lower-emission steel by creating early demand signals.
By securing a key raw material supply and capacity visibility, this partnership strengthens Ørsted’s position in offshore wind. This is in line with the EU’s recent enactment of the Net Zero Industry Act, making non-price criteria mandatory in renewable energy auctions within the EU.
Speaking about the development, Virginie Van de Cotte, Chief Procurement Officer at Ørsted, said, “At Ørsted, we have closer ties to the supply chain than any other offshore wind developer, and we’ll leverage these ties to support our business as well as the green transformation at large. Long-term offtake agreements like this one are key to decarbonising hard-to-abate materials such as steel because it takes clear demand signals to drive investments in the technologies needed to decarbonise production. With this MoU, we’re pleased to help support Dillinger’s development of lower-emission steel facilities in Europe. This is an agreement which will also enable Ørsted to further diversify its supply chain, secure capacity, and deliver on expected future customer demand.”
Stefan Rauber, CEO of Dillinger, added, “The agreement with Ørsted proves that steel made in Germany is relevant for the success of the climate and energy transition, and that it has a future. 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.”
Danny van der Hout, Chief Commercial Officer at Dillinger, noted, “We’d like to thank Ørsted for placing confidence in our expertise and the high quality of our steel. The Dillinger team is proud to contribute to the further expansion of renewable energy with its innovative products.”
