Orsted and other steel-using companies are part of a new global initiative aimed at driving market demand for net-zero emissions steel.
SteelZero has been launched by the non-profit Climate Group, run in partnership with ResponsibleSteel.
Organisations that join SteelZero commit to a transition to procuring, specifying, or stocking 100% net-zero steel by 2050.
The commitment framework also includes an interim commitment for 2030, with various options to achieve this.
Climate Group energy productivity initiatives head Jenny Chu says: “Steel is a critical material for the renewable energy sector, but its production accounts for a significant amount of companies’ supply chain emissions.
“That’s why it’s so encouraging to have Orsted, one of the largest renewable energy companies in the world, sign up as a founding member of SteelZero.
“Orsted’s bold commitment to procuring 100% net-zero steel by 2040 not only demonstrates real leadership and ambition, but will also inspire Ørsted’s peers and others across the supply chain to follow suit.”
The steel industry contributes about 7% of global carbon emissions, making it one of the largest contributors to climate change.
Zero-emissions steel is critical to meeting global climate goals and decarbonising the steel sector and value chain, the Climate Group stated.
Orsted aims to be carbon neutral by 2025 and is targeting a net-zero carbon footprint and carbon-neutral supply chain by 2040.
Steel accounts for about half of the emissions in Orsted’s offshore wind supply chain.
The steel used in the company’s wind turbine installations is highly specialised, and no commercially viable low-carbon alternatives are available today.
Orsted corporate strategy and stakeholder relations senior vice president Jakob Askou Boss said: “As one of the world’s largest renewable energy companies, we’ve set the ambition to decarbonise our entire supply chain by 2040.
“Without low-carbon steel, that won’t be possible. With SteelZero, we want to make it clear to the steel industry that we’re ready to be part of the journey of innovation and collaboration to get there.”
He added: “The good news is that our strategic suppliers share our ambitions.
“So far, we’ve had a lot of positive feedback, and our suppliers are fully engaged. The message we’ve heard loud and clear is that we must solve this together.”