Ørsted ups renewables ambition to 50GW by 2030

Danish developer plans increased investment to boost offshore wind, onshore renewables and green hydrogen production

by Robin Whitlock 2 June 2021

Ørsted now expects to invest more than €37 billion in offshore wind and hydrogen in 2020-27

Ørsted has increased its strategic ambition for renewable energy deployment by an additional 20GW from its 2018 announcement to around 50GW by 2030. Of this, 30GW will come from offshore wind, 17.5GW from onshore wind and solar PV, and 2.5GW from other renewable technologies, including renewable hydrogen.

Investment of DKK 350 billion (€47 billion) for the period 2020-27 will support this ambition. Around 80% is expected to be for offshore wind, including renewable hydrogen, and 20% for onshore wind. This represents a 50% increase in average yearly investments since its Ørsted's announcement in 2018.

The Danish utility is expecting a growth in operating profit (Ebitda) from online offshore and onshore projects of around 12% a year on average, reaching DKK 35-40 billion in 2027. This assumes that all offshore projects which Ørsted is not currently operating as part of a joint venture will be reduced to a 50% ownership stake.

Global renewable energy installations are expected to accelerate significantly, with total renewable capacity forecast to almost triple by 2030. Offshore wind is expected to grow sevenfold, offering unparalleled growth opportunities for Ørsted.

"Our aspiration is to become the world's leading green energy major by 2030," said CEO Mads Nipper. With an installed asset portfolio of 12GW, Ørsted is already a leader in offshore wind. It now aims to become a top-ten player in onshore renewables. "In renewable hydrogen and green fuels, we've built a strong platform with industry-leading offtakers, and we intend to grow this platform to become a global leader in renewable hydrogen," Nipper said.

He added that the company is aiming to become a leading player in a future energy system with much greater integration of renewable energy assets across technologies and linked together by new infrastructure and increased digitalisation.

Ørsted will also ensure that all new projects have a net-positive biodiversity impact. It has announced an immediate ban on the landfilling of wind turbine blades and will commit to full recycling, reuse or recovery of all blades from repowering or end-of-life decommissioning of both onshore and offshore wind farms.