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 November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Offshore

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

Energy

Liquefaction Terminals to Dominate LNG Capital Expenditure

Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

EGAS Tenders for as many as 48 LNG Cargoes

Egypt's state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said. A senior

Wind Power

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

Nordic Yards Delivers 'Wind Server'

Nordic Yards officially handed over the offshore service vessel to the Danish company DBB Jack-Up Services A/S. During the handover ceremony, the ship was named ‘WIND SERVER’.

Dutch Container Terminal Signs on for Wind Power

APM Terminals Signs Contract for Wind-Power Generated Electricity for Maasvlakte II Terminal   APM Terminals has signed a two-year, €5 million ($6.23 million)

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.1460 sec (7 req/sec)