The energy landscape has changed dramatically in the last decade. Since the 2015 Paris Climate Agreement, big energy companies have pledged to reduce their risk of catastrophic climate change by cutting emissions. But as some struggle in the push into green energy, here we explain how Ørsted has undergone one of the biggest transformations in the sector.
The push to reduce carbon emissions has had a profound impact on the energy sector. Renewable energy accounted for half of global growth in energy generation in 2017, according to the International Energy Agency. Indeed, energy companies are taking action to transition to a low-carbon world: Royal Dutch Shell has promised to halve the carbon footprint of the energy it sells by 2050 and invest about $500m a year in cleaner technologies. BP has also set emissions targets and intends to spend $1bn-$2bn on its new energies division. But few have undertaken a transformation as radical as current holding Ørsted.
Turning black into green
Ørsted, formerly DONG Energy, started life as a state-owned energy company when Denmark looked to harness North Sea oil and natural gas resources in the early 1970s.
By the 1990s, Ørsted became one of the first movers in then-nascent offshore wind generation, building the world’s first offshore wind farm in 1991. Over the past decade, the company has repositioned its business from oil, gas and coal to renewable energy, including offshore wind.