Orsted has agreed to deliver renewable hydrogen to steelmaker Salzgitter under a memorandum of understanding (MoU). The Memorandum of Understanding explains how Salzgitter and Orsted want to create closed value chains in their commercial ties.
The strategic partnership involves offshore wind energy supply and usage of renewable hydrogen, as well as the manufacture of low-carbon steel and its application in Orsted’s offshore wind farm components.
Scrap from retired wind turbines will also be recycled into the steel-making process.
“The push in society for climate neutrality is our incentive for rapid expansion of the firm with an emphasis on circularity, the notion of low-carbon and energy-saving closed value chains,” said Salzgitter President Gunnar Groebler meaning”.
“Together, we want to provide the necessary impetus for change and successfully drive it forward; our partnership with Orsted is a key component in the formation of our network of partners; together, we’re demonstrating that circularity is becoming a reality on a large scale,” says Orsted “Groebler added.
“We have a goal of making our own operations climate-neutral by 2025, therefore becoming the first major energy firm to achieve net-zero emissions,” Orsted Chief Commercial Officer and Deputy CEO Martin Neubert stated. By 2040, we plan to do the same with our indirect carbon emissions.”
“As a green energy provider and a significant steel consumer, we consider the relationship with Salzgitter AG as a fantastic chance to take another step toward our aim.” A circularity organization, such as the one we’re searching for, will set the tone for the German industry’s decarbonization. “One of the most significant levers to do this is offshore wind energy,” Neubert stated.
