Denmark: Dong Energy to Quadruple Installed Offshore Wind Capacity

Denmark Dong Energy to Quadruple Installed Offshore Wind Capacity

DONG Energy published the company’s 2020 strategy. Here is the short version.

At the same time as DONG Energy announced its annual accounts for 2012, the strategy for 2020 was disclosed. DONG Energy has set clear ambitions for four focal areas.

DONG Energy will:
1. Quadruple installed offshore wind capacity
2. Double oil and gas production
3. Double the share of biomass from Danish power stations
4. Quadruple energy savings for Danish customers.

While these four targets will receive special attention towards 2020, other areas lie outside the primary focus of DONG Energy. DONG Energy is no longer going to invest in the following areas:

• LNG
• Gas storage
• Onshore wind power
• Hydro power
• Gas-fired power stations
• Waste-based power stations
• Electric cars

In total, 10 clear strategic objectives for 2020 have been formulated for DONG Energy.

The ten strategic objectives

  • Return on invested capital (ROCE) must be at least 10 per cent in 2016 and 12 per cent in 2020. In 2012, ROCE was -7.4 %.
  • In 2016, the key metrics for the adjusted net debt relative to EBITDA (operating result) must be below 2.5. In 2012, the figure was 4.1.
  • In 2020, CO2 emission per produced kWh must be reduced to 260g. In 2012, the emission was 443g/kWh.
  • In 2020, the installed offshore wind capacity must be 6.5GW. In 2012, the capacity was 1.7GW.
  • In 2020, electricity from offshore wind power must be below EUR 100 per MWh. In 2012, the price was approximately EUR 160/MWh.
  • In 2020, the oil and gas production must be 150,000 boe/day. In 2012, the daily production was 78,000 boe/day.
  • In 2020, we must own oil and gas reserves corresponding to minimum 10 times the annual production. In 2012, we owned oil and gas reserves corresponding to 15 times the annual production.
  • In 2020, biomass must constitute at least 50 per cent of Danish heat and power production. In 2012, biomass constituted 21 per cent.
  • In 2020, annual energy savings for Danish customers must be at least 5.9TWh compared to the 2006 baseline. In 2012, the annual savings were 1.6TWh.
  • In 2020, lost time incident frequency (LTIF) must be below 1.5. In 2012, the LTIF was 3.6.

[mappress]

Press release, March 06, 2013; Image: dongenergy

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