Ørsted to invest $68 billion to achieve 50GW of power capacity target by 2030
Renewable energy developer Ørsted will invest $68 billion in energy projects to help meet its 50GW electricity capacity target by 2030. The Danish renewable energy giant said its plans will be fully self-funded. Ørsted added that it expects its 2023 profit expectations to exceed those set for 2021. We are on track to exceed our previous EBITDA and ROCE targets for 2020-2027, confirming the significant value of our renewable energy project portfolio, Ørsted CEO Mads Nipper said in a statement.
The company is the world’s largest offshore wind developer by capacity, with current operational production from renewable assets of 15.5 GW. it also has 4.9 GW of projects already under construction, and said another 10.6 GW of projects have been funded.
Nipper said we believe we can offer an investment program under our current capital structure, discussing whether the company would rule out future equity financing. It said in March that the project was dependent on more financial support from the government, including tax breaks. Ørsted is also developing several wind projects in Poland and the United States.
Other companies, including electric car battery maker AMTE Power and automakers such as Stellantis, as well as Nissan, have also expressed frustration with the British government’s lack of subsidies and tax breaks for renewable energy projects. AMTE Power announced in April that it may move its planned battery mega-plant from Scotland to the United States to take advantage of the Biden administration’s Reducing Inflation Bill to provide subsidies and tax breaks to companies for local electric vehicle production.
Stellantis told the BBC in May that unsustainable U.K. trade tariffs on withdrawal from the European Union could put its operations in the U.K. at risk. Nissan similarly said in February that the company would have to reduce production costs in the U.K. to continue producing electric cars in the country.