Danish renewable energy company Ørsted has announced a new strategy aimed at achieving net-zero greenhouse gas emissions across its entire value chain by 2040, marking the next phase of its decarbonization journey beyond renewable energy generation.
The company unveiled its roadmap in a new paper titled The Next Zero during London Climate Action Week, outlining measures to reduce emissions associated with the design, construction, and operation of offshore wind farms. The strategy focuses on tackling emissions generated from materials sourcing, manufacturing processes, and logistics activities throughout the supply chain.
According to Ørsted, reducing value-chain emissions is not only essential for meeting climate goals but also critical for strengthening business resilience. The company stated that lowering dependence on fossil-fuel-intensive operations can reduce exposure to energy price volatility, improve supplier relationships, and enhance competitiveness as carbon regulations continue to tighten globally.
Patrick Harnett, Chief Construction Officer at Ørsted, said the company remains committed to reaching net-zero emissions across its full value chain by 2040. He highlighted industrial electrification as a key enabler while emphasizing the importance of engineering innovation, improved construction practices, and stronger collaboration throughout the supply chain.
The announcement builds on Ørsted’s achievement of meeting its science-based climate target by the end of 2025. The company reported that renewable energy now accounts for 99 percent of its total energy production, while its direct operational emissions have fallen by more than 98 percent compared with 2006 levels.
Ørsted noted that approximately 75 percent of lifecycle emissions from a typical offshore wind project occur during the development and construction phases. These emissions are primarily linked to a limited number of materials and activities, including steel production, maritime transportation, and cable manufacturing.
To address these challenges, the company has engaged with more than 50 strategic suppliers since 2020. Among its ongoing initiatives, Ørsted has contracted service operation vessels equipped with dual-fuel methanol capability for its Hornsea offshore wind cluster. In addition, collaboration with cable manufacturer NKT is expected to reduce emissions from export cables used in the Hornsea 3 project by approximately 50 percent.
Steel remains the largest contributor to lifecycle emissions within offshore wind developments. Through a partnership with Dillinger, Ørsted is supporting the development of low-emission steel solutions for monopile foundations, helping advance cleaner production pathways within the sector.
The company is also pursuing design innovations to reduce embodied carbon from the outset. Working alongside University of Oxford, Ørsted has developed leaner monopile foundation designs aimed at lowering emissions per installation. Additional operational improvements include the deployment of heavy-lift cargo drones to reduce fuel consumption and decrease reliance on vessels for offshore logistics operations.
In its report, Ørsted emphasized that achieving net-zero emissions will require coordinated efforts across the broader energy ecosystem. The company called on suppliers, customers, policymakers, and investors to support the transition through long-term investment frameworks and stronger market signals.
To accelerate progress, Ørsted urged governments and industry stakeholders to implement stable carbon pricing mechanisms, expand renewable-powered electrification across industrial sectors, accelerate grid infrastructure development, and strengthen collaboration on low-emission technology innovation and deployment.
