Decarbonization News – Danish renewable energy giant Ørsted, one of the world’s largest offshore wind developers, has outlined its next major climate ambition. Having already achieved a near-complete green transformation, the company is now shifting focus to eliminate remaining emissions across its full value chain.
In a new paper titled The Next Zero, released during London Climate Action Week, Ørsted commits to reaching net-zero emissions across its entire value chain by 2040. This goes well beyond its previous science-based targets, which it successfully met by the end of 2025.
Toc=(Table of Content)
From Green Transformation to Full Value Chain Decarbonization
Ørsted has already made dramatic progress. Today, 99% of its energy production comes from renewable sources, and the company has cut its own operational emissions by more than 98% compared to 2006 levels.
However, significant emissions remain embedded in the development and construction of offshore wind farms. According to the company, around 75% of lifecycle emissions for a typical offshore wind project occur during the development and construction phases. These emissions are concentrated in materials, manufacturing, and logistics.
The “Next Zero” strategy aims to tackle these hard-to-abate areas through design innovation, supplier collaboration, and technology deployment.
Key Focus Areas for Emission Reductions
1. Steel – The Largest Challenge
Steel used in monopile foundations remains the single biggest source of lifecycle emissions. Ørsted is actively partnering with suppliers such as Dillinger to support the development and scaling of low-emission steel production pathways.
2. Sustainable Maritime Fuels
The company has contracted service operation vessels with dual-fuel methanol capability for the Hornsea cluster projects. This move is expected to significantly lower emissions from offshore operations and maintenance.
3. Copper and Export Cables
Through collaboration with cable supplier NKT, Ørsted anticipates reducing emissions from export cables at Hornsea 3 by approximately 50%.
4. Design and Engineering Innovations
- Development of leaner monopile designs in partnership with the University of Oxford, which reduce embodied carbon per foundation.
- Use of heavy-lift cargo drones to minimize vessel use and fuel consumption during offshore logistics.
Patrick Harnett on the Road Ahead
“Our sights are firmly set on achieving net zero across our full value chain by 2040. The most impactful and immediate stepping stone is industrial electrification. But it will also require technical ingenuity in engineering, innovation in design and construction, and not least close collaboration across the supply chain.”
— Patrick Harnett, Chief Construction Officer, Ørsted
Strategic and Business Rationale
Beyond climate leadership, Ørsted highlights strong business drivers for value-chain decarbonization:
- Reduced exposure to fossil fuel price volatility
- Stronger partnerships with strategic suppliers
- Improved competitiveness as carbon pricing and regulations tighten globally
- Enhanced ability to meet evolving market expectations
Calls for Broader Industry and Policy Action
Ørsted stresses that no single company can achieve full value-chain net zero in isolation. The company calls for coordinated efforts across suppliers, customers, policymakers, and investors.
Specific recommendations include:
- Carbon pricing — Stable, credible, and long-term frameworks that reward low-emission solutions
- Electrification — Accelerated scaling of renewables-based electrification across heavy industry
- Grid infrastructure — Faster build-out of electricity grids to handle growing renewable demand
- Innovation support — Stronger public-private collaboration to develop and commercialize low-emission technologies
Why This Matters for Decarbonization
This announcement is significant because it shows that even leading renewable developers still face substantial Scope 3 emissions challenges. It highlights steel decarbonization as a critical bottleneck for offshore wind growth and demonstrates practical pathways using electrification, low-carbon materials, and sustainable fuels.
Source: Ørsted Official Press Release (June 2026) Ørsted sets course for ‘next zero’
