In a Memorandum of Understanding (MoU), Salzgitter AG and Ørsted A/S have jointly announced the aim to establish closed value chains in their bilateral business relationships demonstrating circularity on an industrial scale.
Germany-headed iron and steel major Salzgitter AG is a leading European steel and technology company and a pioneer in low-carbon steel production. Denmark-headed energy utility Ørsted A/S is a green energy company and a global market leader in developing, constructing, and operating offshore wind farms.
Both companies have ambitious strategies for the decarbonizing of industry and will work together as strategic partners in the future, which will support Germany’s goal of climate neutrality by 2045. In a Memorandum of Understanding (MoU), the companies have defined their joint approach.
The drive in society for climate neutrality is our incentive for the rapid further development of the company with a focus on circularity, the principle of low-carbon and resource-saving closed value chains. We’ll anchor this firmly in our partnerships. Together, we want to provide the necessary impetus for change and successfully drive it forward. The partnership with Ørsted is an important element in the formation of our partner network. Together with Ørsted, we’re showing that circularity is becoming a reality on an industrial scale, said Gunnar Groebler, Chairman of the Executive Board of Salzgitter AG.
Salzgitter and Ørsted aim to establish closed value chains in their business relationships. In addition to the supply of offshore wind power and the use of renewable hydrogen, the production of low-carbon steel and its use in the components for Ørsted’s offshore wind farms are included.
There are also plans to recycle scrap from decommissioned wind turbines into the steel production process.
We have a target of making our own operations climate-neutral by 2025, thereby becoming the first major energy company to reach net-zero emissions. We want to achieve the same for our indirect carbon emissions 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. A circularity partnership like the one we’re striving for will set the trend for the decarbonization of the German industry. And offshore wind power is one of the most important levers to achieve this, said Martin Neubert, Chief Commercial Officer and Deputy Group CEO at Ørsted.
