Future of Green Energy at Orsted

The future of green energy: Ørsted A/S (formerly DONG Energy) is a power company based in Fredericia, Denmark. It is the largest energy company in Denmark. Through various company visits in Sweden and Denmark, I learnt that companies in the “blackest” industry such as transportation and energy have become more serious and passionate about being “green”. Ørsted used to be one of the blackest energy companies in Europe and has completely transferred into a green energy company. Today, green energy is 64% of their energy portfolio (13% only in 2006). Ørsted’s objective is to increase green energy composition to 95% in 2023 in their business.

Ørsted’s Mission: A world that runs entirely on green energy. Ørsted acknowledges that the world is not far away from a real threat of a global climate crisis. Energy industry which is mostly based on fossil fuels has significant contribution to green-house effect and climate change. Over the past decade, Ørsted wants to make a difference and they have been transforming from fossil fuels to renewable energy. In 2017, Ørsted completed divestments of their upstream oil and gas business, and by 2023 they will completely stop using coal.

Ørsted’s Sustainability Strategy

  • Building a world that runs entirely on green energy: Ørsted has various programs running on green energy: Green energy generation; deployment of offshore wind, greener power stations, integration of green energy and energy savings
  • Enabling sustainable growth: Ørsted’s programs include: sourcing of certified sustainable biomass; local communities; performance and development; employee satisfaction and motivation; employee diversity; protecting biodiversity and resource management
  • Business integrity: Ørsted focuses on workplace safety; employee health and well-being; responsible business partners, cyber security, good business conduct, customer experience, responsible tax practices and personal data protection

Solutions for green energy: Offshore wind and biomass.

  • Offshore wind has global potentials, it is expected to be the fastest growing renewable energy technology towards 2020 in Europe with double capacity compared to today. Ørsted has a significant pipeline of offshore wind projects in Europe and would go beyond European markets after 2020 such as Taiwan and US. The biggest barrier for offshore wind is cost. However, cost of offshore wind project has reduced 60% in five years and in 2017 auctions for offshore wind in Northern Europe went below the new conventional coal or gas-fired power stations. Ørsted targets to bring offshore wind power to 30 million people by 2025
  • Biomass – goodbye to coal: Coal is the most polluting source of energy, and it is time to say good bye to coal. Ørsted has reduced its usage of coal by 82% since 2006 thanks to the biomass conversion and closing of coal-fired capacity. They are operating seven large combined heat and power plants in Denmark, they have converted five of the power stations from coal and gas to biomass. They are negotiating to convert their largest and the last coal running power station. Replacing coal and gas with biomass significantly contributes to CO2 emission reduction. Ørsted is expected to be entirely coal-free in 2023.
  • Reference: Company sources and sustainability report 2017