Green energy giant plans next steps MONEY & MARKETS EXTRA
One of Europe’s most fossil fuel-intensive energy companies transformed completely in little more than a decade by doubling down on offshore wind.
Now Ørsted is one of the biggest renewable energy developers. The company aims to build 50 gigawatts of varied clean energy generation capacity by 2030.
CEO Mads Nipper spoke with The Associated Press about the offshore wind industry, green hydrogen and the company’s ambitions.
Do you consider Ørsted as a clean energy supermajor?
Not yet. But we will be... We invest, depending on the year, $6, $7 billion a year purely into renewable energy.
How has the war in Ukraine affected
Ørsted’s business and the offshore wind sector in general?
It has not affected our offshore business, I would say. If indirectly, then tragically or ironically, actually positively, because it’s dawning very clearly to Europe that energy independence and therefore energy security and not being dependent on Russia for energy supplies is not just a matter of climate policy. It’s very much security policy as well.
Is Ørsted best positioned to help the U.S. transition to green energy?
The U.S. is a major growth priority market for us globally.
How can you use the incentives offered for green energy in the U.S. through the Inflation Reduction Act?
The U.S. has clearly set a benchmark globally for what I call a wholehearted push to really advance clean energy. That’s both for offshore but also for onshore, and maybe most revolutionary also with the up to $3 tax credit for green hydrogen. Overnight, that very likely made the U.S. the cheapest market to produce green hydrogen.
You view green hydrogen as a key component of the green transition and a major growth area for Ørsted?
All the hard-to-abate sectors of the world, be it heavy transport, maritime, refineries, cement, everyone needs green molecules. So we know the market will be there and we are trying to help create that.
Where do you see us on the trajectory of offshore wind?
We are at the end of the beginning... We are ready for a totally different level of scaling. The industry has scaled, but we need to accelerate that scaling.
You said a year ago that it’s still possible to stay within the 1.5 degrees Celsius (2.7 degrees Fahrenheit) scenario, the elusive international goal Do you still feel that way?
It has become more difficult because unfortunately, the planet doesn’t forget... I will say I am still optimistic we will manage temperature increases to be at a level where we can avoid the biggest disasters. But 1.5 degrees is a stretch.