Latest news with #RasmusErrboe
CNA
5 days ago
- Business
- CNA
Orsted favours investing more in Taiwan, South Korea over new markets in Asia, says exec
KUALA LUMPUR : Orsted, the world's biggest offshore wind developer, will increase investment in Taiwan and South Korea where it has already been awarded projects, instead of expanding to new markets in Asia, a senior company official told Reuters on Monday. Rising costs, supply chain disruptions and loss of investor confidence in offshore wind have resulted in the Danish company losing around 80 per cent of its market value from its 2021 peak. "I think our main focus is now to double down on the key markets that we have chosen to win in," Per Mejnert Kristensen, Orsted's Asia-Pacific president told Reuters on the sidelines of the Energy Asia 2025 conference. Orsted, the biggest offshore developer by capacity, withdrew its previously set 2030 target for installed renewable capacity of 35-38 gigawatts this year, and Chief Executive Rasmus Errboe faces the challenge of reviving investor confidence and meeting the new realities of the offshore wind industry. The company operates 10 gigawatts (GW) of offshore capacity globally, including 0.9 GW in Taiwan. It also has prospective projects in South Korea and Australia in various stages of development. "We know that we are in an environment that can change. We need to see clearly investable projects," Kristensen said, adding that he hoped other Asian countries emulate the Taiwan government's policies. "They have very good wind conditions for offshore wind. They have relatively shallow water, so you can put fixed bottom offshore wind parks in the ocean. And then on the political side, they had very early and clear ambition, and then they managed to make some offshore wind frameworks that made the projects investable," he said. As a result, international investors together with local partners in Taiwan could clearly see a pathway that would make it worthwhile to invest for the next 30-40-50 years, he said. "While the political ambition is there (in some other countries), it's not all places where they've managed to translate that into commercially viable frameworks," he said.
Reuters
5 days ago
- Business
- Reuters
Orsted favours investing more in Taiwan, South Korea over new markets in Asia, says exec
KUALA LUMPUR, June 16 (Reuters) - Orsted ( opens new tab, the world's biggest offshore wind developer, will increase investment in Taiwan and South Korea where it has already been awarded projects, instead of expanding to new markets in Asia, a senior company official told Reuters on Monday. Rising costs, supply chain disruptions and loss of investor confidence in offshore wind have resulted in the Danish company losing around 80% of its market value from its 2021 peak. "I think our main focus is now to double down on the key markets that we have chosen to win in," Per Mejnert Kristensen, Orsted's Asia-Pacific president told Reuters on the sidelines of the Energy Asia 2025 conference. Orsted, the biggest offshore developer by capacity, withdrew, opens new tab its previously set 2030 target for installed renewable capacity of 35-38 gigawatts this year, and Chief Executive Rasmus Errboe faces the challenge of reviving investor confidence and meeting the new realities of the offshore wind industry. The company operates 10 gigawatts (GW) of offshore capacity globally, including 0.9 GW in Taiwan. It also has prospective projects in South Korea and Australia in various stages of development. "We know that we are in an environment that can change. We need to see clearly investable projects," Kristensen said, adding that he hoped other Asian countries emulate the Taiwan government's policies. "They have very good wind conditions for offshore wind. They have relatively shallow water, so you can put fixed bottom offshore wind parks in the ocean. And then on the political side, they had very early and clear ambition, and then they managed to make some offshore wind frameworks that made the projects investable," he said. As a result, international investors together with local partners in Taiwan could clearly see a pathway that would make it worthwhile to invest for the next 30-40-50 years, he said. "While the political ambition is there (in some other countries), it's not all places where they've managed to translate that into commercially viable frameworks," he said.
Business Mayor
11-05-2025
- Business
- Business Mayor
Danish firm shelves huge UK windfarm project over rising costs
The world's biggest wind power developer has cancelled plans for one of the UK's largest offshore windfarms, in a significant blow to the government's green energy targets. The Danish wind power company Ørsted said the Hornsea 4 project no longer made economic sense because of soaring costs in the industry's global supply chain, after it won a government contract last year. The decision to halt work on the project is a major blow to the government's plan to quadruple the UK's offshore wind capacity by the end of the decade to help create a virtually fossil-fuel-free electricity system. The fourth phase of the huge Hornsea windfarm, located off the Yorkshire coast, was expected to use 180 giant turbines to generate enough green electricity to power the equivalent of 1m homes, or 2.4 gigawatts of power capacity. Ørsted's chief executive, Rasmus Errboe, said 'the combination of increased supply chain costs, higher interest rates and increased execution risk' meant the project was unlikely to provide value for the company. The project is the latest to be derailed by increased costs caused by higher inflation and interest rates combined with problems in the global offshore wind supply chain in recent years. Last year Ørsted scrapped two offshore wind projects off the US coast because of concerns over rising costs and delayed the start of a third project off the coast of Rhode Island and Connecticut by a year, to 2026. In 2023 the Swedish energy company Vattenfall stopped work on the multibillion-pound Norfolk Boreas windfarm in the North Sea, which was designed to power the equivalent of 1.5m British homes, because it was no longer profitable. Ørsted said on Wednesday that the wind industry faced short-term challenges such as supply chain issues and 'regulatory and macroeconomic developments'. Such problems have led to concerns over the UK government's renewable energy goals, piling pressure on its auction for new renewable energy contracts. The government plans to double the UK's onshore wind, triple its solar power and quadruple its offshore wind power capacity by the end of the decade. It hopes to relegate gas plants to just 5% of the UK's electricity generation by 2030 to create a clean power system. Dhara Vyas, the chief executive of Energy UK, which represents the industry, said the loss would 'raise the stakes' on the the next auction round, due in the summer, and it was 'vital that the government doubles down to ensure [it] is a success'. Jane Cooper, the deputy chief executive of RenewableUK, another industry group, said the auction's parameters should reflect the industry's costs. Cooper also called on the government to rule out the introduction of controversial plans to overhaul the electricity market by introducing 'zonal pricing', which she said would 'drive the cost of investment up even further'. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion A government spokesperson said it continued to have 'a strong pipeline of projects' to provide clean power by 2030 and it would work with Ørsted to get Hornsea 4 back on track. The spokesperson added: 'Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain's energy security as part of our plan for change.' For US windfarm developers the economic challenges facing the industry have been compounded by the incoming Trump administration's vow to end offshore wind development 'on day one'. It has issued a stop-work order to a major offshore wind project developed by Norway's state energy company Equinor. However, Ørsted said the long-term outlook for offshore was strong because of the world's growing demand for electricity and a fresh focus on 'energy security and affordability' that renewable energy provides. It has been a turbulent time for Ørsted: it implemented a restructuring plan in 2024, and it cancelled dividend payouts to shareholders for the 2023-25 financial years in an attempt to bolster its finances. Its market value has plunged by about 80% since its peak in 2021. Britain's offshore energy industry took another blow on Wednesday when the largest oil and gas producer in the North Sea set out plans to shrink its Aberdeen-based workforce by a quarter. Harbour Energy blamed the UK government's windfall tax on North Sea oil and gas revenues – the so-called energy profit levy – for its financial struggles, which could lead to up to 250 jobs being cut from the company in the coming months.
Yahoo
08-05-2025
- Business
- Yahoo
Danish firm shelves huge UK windfarm project over rising costs
The world's biggest wind power developer has cancelled plans for one of the UK's largest offshore windfarms, in a significant blow to the government's green energy targets. The Danish wind power company Ørsted said the Hornsea 4 project no longer made economic sense because of soaring costs in the industry's global supply chain, after it won a government contract last year. The decision to halt work on the project is a major blow to the government's plan to quadruple the UK's offshore wind capacity by the end of the decade to help create a virtually fossil-fuel-free electricity system. The fourth phase of the huge Hornsea windfarm, located off the Yorkshire coast, was expected to use 180 giant turbines to generate enough green electricity to power the equivalent of 1m homes, or 2.4 gigawatts of power capacity. Ørsted's chief executive, Rasmus Errboe, said 'the combination of increased supply chain costs, higher interest rates and increased execution risk' meant the project was unlikely to provide value for the company. The project is the latest to be derailed by increased costs caused by higher inflation and interest rates combined with problems in the global offshore wind supply chain in recent years. Last year Ørsted scrapped two offshore wind projects off the US coast because of concerns over rising costs and delayed the start of a third project off the coast of Rhode Island and Connecticut by a year, to 2026. In 2023 the Swedish energy company Vattenfall stopped work on the multibillion-pound Norfolk Boreas windfarm in the North Sea, which was designed to power the equivalent of 1.5m British homes, because it was no longer profitable. Ørsted said on Wednesday that the wind industry faced short-term challenges such as supply chain issues and 'regulatory and macroeconomic developments'. Such problems have led to concerns over the UK government's renewable energy goals, piling pressure on its auction for new renewable energy contracts. The government plans to double the UK's onshore wind, triple its solar power and quadruple its offshore wind power capacity by the end of the decade. It hopes to relegate gas plants to just 5% of the UK's electricity generation by 2030 to create a clean power system. Dhara Vyas, the chief executive of Energy UK, which represents the industry, said the loss would 'raise the stakes' on the the next auction round, due in the summer, and it was 'vital that the government doubles down to ensure [it] is a success'. Jane Cooper, the deputy chief executive of RenewableUK, another industry group, said the auction's parameters should reflect the industry's costs. Cooper also called on the government to rule out the introduction of controversial plans to overhaul the electricity market by introducing 'zonal pricing', which she said would 'drive the cost of investment up even further'. A government spokesperson said it continued to have 'a strong pipeline of projects' to provide clean power by 2030 and it would work with Ørsted to get Hornsea 4 back on track. The spokesperson added: 'Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain's energy security as part of our plan for change.' For US windfarm developers the economic challenges facing the industry have been compounded by the incoming Trump administration's vow to end offshore wind development 'on day one'. It has issued a stop-work order to a major offshore wind project developed by Norway's state energy company Equinor. However, Ørsted said the long-term outlook for offshore was strong because of the world's growing demand for electricity and a fresh focus on 'energy security and affordability' that renewable energy provides. It has been a turbulent time for Ørsted: it implemented a restructuring plan in 2024, and it cancelled dividend payouts to shareholders for the 2023-25 financial years in an attempt to bolster its finances. Its market value has plunged by about 80% since its peak in 2021. Britain's offshore energy industry took another blow on Wednesday when the largest oil and gas producer in the North Sea set out plans to shrink its Aberdeen-based workforce by a quarter. Harbour Energy blamed the UK government's windfall tax on North Sea oil and gas revenues – the so-called energy profit levy – for its financial struggles, which could lead to up to 250 jobs being cut from the company in the coming months. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
E&E News
08-05-2025
- Business
- E&E News
2 offshore wind projects move forward despite Trump's threats
An offshore wind project serving Rhode Island and Connecticut is 75 percent complete, and a second facility off of New York is more than a third done, Ørsted said Wednesday. The fate of Ørsted's U.S. projects have been the subject of intense speculation following the Interior Department's decision last month to halt work on a competitor's offshore wind facility in New York called Empire Wind. Ørsted CEO Rasmus Errboe told financial analysts during the company's quarterly earnings call Wednesday that the Danish wind developer was in 'ongoing, constructive dialog' with the Bureau of Ocean Energy Management, the division of the Interior Department that oversees offshore wind permitting. Advertisement 'I'm not going to speculate about potential regulatory changes in the U.S. that is outside of our control,' he said. 'Our two projects have completed multiyear reviews and have also followed all state and federal procedures.'
