Ørsted First Energy Company to Set 100 Pct Renewable Electricity Requirement for Suppliers

Ørsted has set expectations for all its suppliers to use 100 per cent renewable electricity by 2025, becoming the first energy company in the world to do so, according to Ørsted.

The commitment builds on learnings from Ørsted’s existing supply chain decarbonisation programme, established in 2020, which targeted its strategic suppliers to use 100 per cent of renewable energy in the manufacturing of wind turbines, foundations, cables, substations, and other components and services by 2025.

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According to Ørsted, within its first two years, the programme has already seen significant progress, and currently, a majority of suppliers involved have adopted 100 per cent renewable electricity use.

Now, the company is extending its target which means that Ørsted expects all its suppliers to exclusively use electricity from renewable energy sources when providing products or services to the firm by 2025 at the latest.

“A sustainable future for our planet requires a rapid transition to renewable energy and limiting global warming to 1.5 °C. That’s why the renewables industry must lead the pack by decarbonising its own supply chain”, said Mads Nipper, Group President and CEO of Ørsted.

The suppliers could achieve Ørsted’s target by e.g. investing in on-site renewable electricity assets, entering into power purchase agreements (PPAs) tied to renewable energy projects whose realisation depends on securing financing or purchasing renewable electricity certificates, according to the Danish offshore wind giant.

The company said it will support its suppliers with renewable electricity guidelines to help select the best solutions.

Ørsted set a target to become carbon-neutral in its own energy generation and operations by 2025 and achieve a carbon-neutral footprint by 2040.

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Photo: Ørsted