Danish energy provider Orsted has joined a new global initiative to drive demand for net-zero emission steel alongside other players who rely on the industry for their business.
Photo: Ørsted A/S
The SteelZero project has been launched by the Climate Group, a non-profit organisation that works alongside businesses and governments to discuss and tackle climate change issues, run in partnership with ResponsibleSteel.
Companies that join the SteelZero plan agree on a commitment of net-zero emissions by 2050, with an additional interim commitment for 2030, and various ways in which to achieve this.
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Jakob Askou Bøss, Senior Vice President for Corporate Strategy and Stakeholder Relations at Ørsted, 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.
"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."
Shares in Orsted fell on Wednesday following news that the Danish government had sized kr6.6 billion (€886 million) in taxes relating to the construction of two British wind farms.
Orsted announced on Tuesday evening it would be appealing the claim relating to the two offshore wind farms, Hornsea One and Walney extension.
The claim is to account for the value created in the development phase of the wind farms, which took place in Denmark.
Read more: SSE and Equinor To Invest In Dogger Bank Wind Farm
The steel industry accounts for around 7% of the world's emissions, making it one of the largest single contributors to climate change. Orsted claim decarbonising the sector is key in achieving net-neutral emissions.
Orsted currently plans to become entirely carbon-neutral by 2025.
Jenny Chu, Head of Energy Productivity Initiatives at the Climate Group, 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 Ørsted, one of the largest renewable energy companies in the world, sign up as a founding member of SteelZero.
"Ørsted'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."
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