Danish offshore wind giant Ørsted has asked all its suppliers to begin using 100% green electricity by 2025, as part of its supply chain decarbonization program. Ørsted says it has become the first energy company in the world to take such a step.
The company launched the decarbonization program in 2020, asking its strategic suppliers, which account for over 60% of its total procurement spending, to decarbonize the offshore wind supply chain by switching to green electricity.
It then set a clear expectation for the strategic suppliers to use 100% renewable electricity in the manufacturing of wind turbines, foundations, cables, substations, and other components and services by 2025, Ørsted said in a press release.
Ørsted has now said it is extending the target and expects all suppliers to use 100% renewable electricity by 2025.
The company says it is on track to become carbon-neutral in its own energy generation and operations
Two years into the program, a majority of the strategic suppliers have already adopted 100% renewable electricity use, while a further 15% have committed to using renewable electricity exclusively by 2025, Ørsted said. The company also said it is well on track to achieve its goal of becoming carbon neutral in its own energy generation and operations by 2025.
Ørsted CEO: The renewables industry must lead the pack
Mads Nipper, CEO of Ørsted, said that “the renewables industry must lead the pack by decarbonizing its own supply chain,” noting that “a sustainable future for our planet requires a rapid transition to renewable energy.”
The Danish company develops, builds, and operates offshore and onshore wind farms, solar parks, energy storage facilities, renewable hydrogen and green fuels facilities, and biomass plants.
In the offshore wind segment, Ørsted is the global leader, with offshore wind farms in Denmark, the UK, Germany, the Netherlands, Taiwan, and the US. Its ambition is to have installed 30 GW of offshore wind capacity by 2030, according to the company’s website.