Ørsted posts big profits, plans solar, energy storage and services business

Burbo Bank Extension
Burbo Bank Extension

Ørsted, the Danish energy company formerly known as Dong, has outlined plans to push into energy storage, services and solar power.

Posting strong profits for 2017, CEO and president Henrik Poulsen said Ørsted has “established a new unit focusing on energy storage and solar PV projects, and we also look into onshore wind”.

Meanwhile, the company seeks to mature and scale its ‘energy-as-a-service’ concept for industrial and commercial customers.

While it is “early days” for its new business initiatives, Poulsen said the company is nevertheless open to strategic acquisitions in those areas.

“When it comes to storage, solar PV and onshore wind, we first and foremost see value creation where we can take over projects from developers who do not have the scale, capabilities, and balance sheet to extract the full value from their projects,” he said.

Poulsen said the firm was not “under pressure” to move into areas such as storage, but noted that the global market is expected to grow 15 times to 121GWh by 2025.

Meanwhile, for its core offshore wind business, Poulsen said there remained “considerably potential for further cost reductions”.

Earnings before interest, taxes, deductions and amortisation (Ebitda), or operating profit, increased 18% to £2.64bn.

See Poulsen’s full statement and Ørsted’s annual report here.

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