The ordinals under Hessenberg arithmetic are the free commutative semiring on ordinals of the form $\omega^{\omega^\alpha}$ - any ordinal can be written in Cantor normal form as a sum of powers of $\omega$, then write those powers in Cantor normal form, and rewrite $\omega^{\omega^\alpha+\omega^\beta} \to \omega^{\omega^\alpha}\omega^{\omega^\beta}$ to get a sum of products of powers of powers of $\omega$.
So, take the free distributive category with objects $\omega^{\omega^\alpha}$. The commutative semiring of (isomorphism classes of) objects of this category, with coproduct as addition and product as multiplication (this is a commutative semiring because the category is distributive), is isomorphic to the free commutative semiring on $\omega^{\omega^\alpha}$, which (by the first paragraph) is isomorphic to the commutative semiring of ordinals with Hessenberg arithmetic, so this is the category of ordinals we're looking for.