Orsted plans to invest DKK 200 billion ($30.25 billion) in green energy by 2025, and reach an installed offshore wind capacity of more than 30 gigawatts (GW) by 2030, CEO and President Henrik Poulsen said Wednesday.
"Moving towards 2025, we plan to invest DKK 200 billion in green energy, thereby contributing to the transformation of the global energy system and creating value for our shareholders and the communities we are part of," Poulsen said, according to a statement from the Danish offshore wind giant.
The president's remarks came after Orsted's Board of Directors approved the group's new ambitions and long-term financial targets.
"We expect the global market for renewable energy to more than triple towards 2030. As one of the leading companies within renewable energy, Orsted has a strong platform to take part in this build-out," Poulsen said.
The company's current portfolio consists of 11.9 GW of offshore and onshore wind farms and biomass-fired combined heat and power plants that are either in production, under construction or have been given final investment decision (FID).
Orsted also has projects with a capacity of 4.7 GW for which it has been awarded the concessions to construct, but is yet to reach FIDs.
"In addition, we have a strong pipeline of projects under development. Towards 2030, it's our strategic ambition to reach an installed capacity of more than 30 GW, provided that the build-out creates value for our shareholders. As an important step, we’re raising our 2025 ambition for offshore wind from 11-12 GW to 15 GW," Poulsen added.
The president highlighted Orsted's aim to maintain its position as global market leader in offshore wind and continue its build-out in Europe, North America and Asia.
"Our second growth platform is our onshore business, consisting of onshore wind, solar energy and energy storage. It's our ambition to create a leading North American company within renewable energy. In addition, we’ll continue to explore the growth and value creation potential in our bioenergy business and strengthen the route to market for our product portfolio in Customer Solutions," he said.
According to the statement, Orsted's strategic ambition for the build-out of renewable energy will be supported by an extensive investment program.
From 2019-2025, investments in offshore wind farms are expected to constitute 75-85 percent of this program. Onshore investments are expected to constitute 15-20 percent, while combined investments in Bioenergy and Customer Solutions are expected to constitute up to 5 percent.
"Towards 2023, we expect an increase in operating profit from offshore and onshore wind farms of 20 percent a year until reaching a level of DKK 25-26 billion ($3.78-3.93 billion) in 2023," it said.
The strategic plan entails an expected increase of the share of green energy in the overall generation from 64 percent in 2017 to 99 percent in 2025, Orsted added.
By Hale Turkes