Dong to Spend $1.8 Billion A Year for Offshore Wind Farms

Wednesday, March 21, 2012

Dong Energy A/S plans to invest about $1.8 billion a year on offshore wind projects to offset a “challenging” environment for gas plants, as it ceases to build new coal power facilities, its chief said.

That’s about what the world’s largest developer of offshore wind parks spent last year on turbines installed at sea.

“We think that is around that level we will be working at in the coming years,” said Anders Eldrup, chief executive officer of the Fredericia, Denmark-based company.

Dong announced that Eldrup, who spoke in an interview on March 9, is stepping down as chief executive. Finance director Carsten Krogsgaard Thomsen will be acting CEO until a new chief executive is found, it said, adding that there will be no change in the company’s strategy.
Dong is focusing on renewable sources for electricity generation to shift from fossil fuels and cut emissions, as the rising cost of gas depresses profits for burning the fuel. Profitability of burning gas in the U.K. has fallen 75 percent, to 1.62 pounds ($2.54) a megawatt-hour, in the last six months, according to Bloomberg calculations using broker data.

“It seems to be quite challenging times for the CCGTs,” or combined-cycle gas turbine plants, Eldrup said.

The company doesn’t have “precise investment plans” for new plants, as they are “not very profitable” now, he said. Dong operates gas- fired power plants in Norway, Denmark and the Netherlands and opened its first in the U.K. in south Wales last year.

The company, with about 1.3 gigawatts of operating offshore wind farms and 1.1 gigawatts under construction, plans to build 3 gigawatts of offshore wind by 2020, Eldrup said. Dong may make investments of 10 billion kroner a year for the next two to three years in offshore wind, he said.

Dong will fund new offshore wind plants with company revenue and from selling shares in existing projects, Eldrup said.

Nations are promoting clean energy to curb emissions and meet European Union goals. The U.K. is planning to build 18 gigawatts of offshore wind by 2020, from about 2 gigawatts now, while Germany targets about 10 gigawatts by the same year.
“We are constantly surveying the market for future projects,” Eldrup said. (Bloomberg)
 

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ASA Mission Statement Revised to Expand Reach

The American Salvage Association has revised its mission statement to increase its area of influence beyond North America, complemented by a new logo that reflects the expanded direction.

New Chemical Handling Service from Ferguson Group

Tank, Fluid Solutions and Bunded Storage for Dangerous Goods and Chemicals Introduced at Gap Ridge, Karratha.    Ferguson Group Australia, global specialist in offshore DNV 2.

BP Freezes Pay in 2015 to Cut Costs

BP is freezing base pay across the group this year, the latest in a series of steps by oil majors to cut costs in response to sinking oil prices.   Over the past year,

Offshore

New Chemical Handling Service from Ferguson Group

Tank, Fluid Solutions and Bunded Storage for Dangerous Goods and Chemicals Introduced at Gap Ridge, Karratha.    Ferguson Group Australia, global specialist in offshore DNV 2.

InterMoor Completes Juniper Mooring Installation Contract

InterMoor has completed a mooring and foundation installation campaign for bpTT’s Juniper gas project offshore Trinidad and Tobago, reportedly the largest foundation

Boost for Offshore Wind Energy

As part of President Obama’s Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution, Secretary of the Interior

Energy

Britain to Ban Fracking in National Parks

Britain said on Monday it would ban fracking in national parks, reversing a policy announced last year, in a concession to the opposition Labour Party which had

Libya Forces Tanker Away from Supplying Rival Government

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it.

BP Freezes Pay in 2015 to Cut Costs

BP is freezing base pay across the group this year, the latest in a series of steps by oil majors to cut costs in response to sinking oil prices.   Over the past year,

Wind Power

Boost for Offshore Wind Energy

As part of President Obama’s Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution, Secretary of the Interior

Infigen Energy Mulls Shedding U.S. Wind Farms

Australia under pressure to fix renewable energy target deadlock; 45 wind farm projects stalled. Australian wind farm operator Infigen Energy Ltd is exploring the sale of 18 U.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1799 sec (6 req/sec)