Ørsted Raises 2025 Offshore Wind Bar

Ørsted has raised its 2025 offshore wind target from 11-12GW to 15GW as part of the group’s development plan to invest DKK 200 billion (approximately EUR 26.8 billion) in renewable energy in the next seven years.

Investments in offshore wind are expected to constitute 75-85% of the DKK 200 billion program, which was approved by company’s Board of Directors on 28 November.

“We expect the global market for renewable energy to more than triple towards 2030. As one of the leading companies within renewable energy, Ørsted has a strong platform to take part in this build-out. Today, our portfolio consists of 11.9GW 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),” Ørsted’s CEO and President Henrik Poulsen said.

“We also have projects with a capacity of 4.7GW for which we’ve been awarded the concessions to construct, but are yet to make the FID. 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 30GW, provided that the build-out creates value for our shareholders. As an important step, we’re raising our 2025 ambition for offshore wind from 11-12GW to 15GW.”

Ørsted expects an increase in operating profit (EBITDA) from offshore and onshore wind farms of 20% per year towards 2023 until reaching a level of DKK 25-26 billion (some EUR 3.4 billion).

Return on capital employed for 2019-2025 is anticipated to be approximately 10%, which is a reduction said to be a result of earnings from the 50% divestment of Hornsea Project One being outside this period and of the acquisitions of Lincoln Clean Energy and Deepwater Wind.

According to Poulsen, Ørsted wants to continue its build-out in Europe and Asia, as well as in North America where it wants to create a leading renewable energy company.

The investment plan entails an expected increase of the share of renewable energy in the overall generation from 64% in 2017 to 99% in 2025, the Danish company said.