Dong Energy Embraces Offshore Wind
Dong Energy Ponies Up $1.8 Billion a Year for Offshore Wind
As a result of waning interest in fossil fuel-based power generation, Dong Energy has recently announced plans to invest $1.8 billion a year in offshore wind projects.
This annual commitment actually comes at a time when the company is seeking to make an active shift from fossil fuel-generated electricity to electricity generated from renewable resources.
Bottom line: The profitability of burning gas has plummeted. In the last six months alone, it has fallen by 75% in the UK to $2.54 per megawatt-hour. And Dong has zero interest in coal-fired power, as it is moving to cut its carbon-dioxide emissions by half.
Roughly 50 percent of the old coal-fired power plants will be converted to use biomass, and the company is now actively expanding its wind energy wings.
Currently Dong operates about 1.3 gigawatts of offshore wind with an additional 1.1 gigawatts under construction. The company's plan is to have 3 gigawatts of offshore wind by 2020.
Funding for the new offshore wind farms will come from Dong’s revenue and selling shares in existing projects, in addition to selling 50% of a German park to Kirkbi A/S for about $823 million last month.
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