Germany-based steelmaker Salzgitter Group has announced that it has signed a memorandum of understanding (MoU) with Denmark-based energy company Ørsted with an aim to establish closed value chains in their business relationships.
Under the MoU, Ørsted will supply offshore wind power and green hydrogen to Salzgitter, while using the latter’s low-carbon steel in components for its offshore wind farms. There are also plans to recycle scrap from decommissioned wind turbines into the steel production process.
Ørsted has a target of making its own operations climate-neutral by 2025, thereby becoming the first major energy company to reach net-zero emissions.