Our road map to net-zero steel
At Ørsted, steel accounts for nearly half of the life cycle emissions from our offshore wind farms, which is why it remains a key focus of our decarbonisation efforts towards net-zero by 2040 – even though our steel production occurs further out in our supply chain. In 2021, we developed a systematic road map with three strategic areas of action to help accelerate a transition to green steel:
1. To lower emissions from production, we currently encourage steel suppliers to pursue incremental efficiencies, e.g. through more efficient processes and/ or reducing the share of coking coal. In 2022, we will also be collecting emissions intensity data to document the effects. According to the World Economic Forum’s Net-Zero Steel Initiative, incremental efficiencies can bring about 15-20 % emissions reductions.
2. In the medium term towards the 2030s, we are leveraging our expertise in designing offshore wind foundations to integrate circular approaches, where material is reused or recycled. Over the years, we have reduced the amount of steel used in our foundations, and in 2022, we will assess options for further circular levers across the life cycle, such as higher levels of scrap (recycled) steel in our projects.
3. Reaching net-zero steel in the long term relies on breakthrough technologies. According to the Net-Zero Steel Initiative, breakthrough technologies such as renewable hydrogen and green electricity in production have the potential to realise up to 99 % of emissions reductions in the long term by displacing more traditional, fossil-intensive production processes that rely on the use of blast furnaces.