January 25 (Renewables Now) - Danish clean energy group and offshore wind major Ørsted A/S (CPH:ORSTED) and German steelmaker Salzgitter AG (ETR:SZG) have signed a memorandum of understanding to create closed value chains in their business relationships.
The strategic partnership agreement covers the supply of offshore wind power and the use of green hydrogen, the production of low-carbon steel and its use in Ørsted's offshore wind projects, according to an announcement by the companies today. The two also eye using scrap from decommissioned wind turbines in steel production.
Ørsted chief commercial officer Martin Neubert noted that the energy group has a target of achieving carbon neutrality across its own operations by 2025 and its entire carbon footprint by 2040. “As a supplier of green power and as a large offtaker of steel, we consider the partnership with Salzgitter AG a great opportunity to move a step closer to reaching this target,” Neubert added.
He further commented that offshore wind is an important means for decarbonising the German industry.