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DONG Energy
19 October 2010

DONG Energy: “Renewables will be the next industrial revolution”

Thomas Dalsgaard, head of Group Regulatory Affairs at DONG Energy set out DONG Energy’s vision for a renewable energy revolution today.
Speaking at the European Future Energy Forum in a panel debate, he called upon ambitious countries to compete to be the front-runners of renewable energy business:
“It will be the most ambitious countries that will host the industrialization of the renewable sector. There is very solid momentum in the industry and strong competition amongst the suppliers of renewable energy. And there will be equal competition between countries to be the champions of the renewable industry.
“We are encouraged that many countries continue to pursue an ambitious low carbon and renewables agenda despite the absence of a global agreement on carbon pricing. The national and regional arrangements that spur the green transition are now setting the agenda for the green transition.”
DONG Energy is one of the leading offshore wind operators in the UK and has the biggest stake of fifty percent in what will be the UK’s largest offshore wind farm, the London Array. The UK is one of DONG Energy’s primary markets for developing offshore wind and DONG Energy has over 20 years experience in the wind power industry.
On offshore wind, Thomas continued:
“In offshore wind we’ve seen a large amount of growth and professionalizing in the industry in the last two years. We must continue that growth of renewables as a business to make costs even more competitive against fossil fuels.”
DONG Energy’s vision is to deliver reliable energy without CO2. An important part of this vision is the company’s 85/15 plan. Today the company emits more than 600 grams CO2 per kWh when it produces heat and power. The aim is to halve the CO2 emissions by 2020 and to emit only 15 % by 2040, equivalent to approx. 100 grams per kWh.
DONG Energy has, since 2005 invested 3.7 billion GBP in the UK.
NOTES
Facts and figures on DONG Energy in the UK:
In the Crown Estate’s Round 2.5 Licence Round, DONG Energy has recently been awarded the licence to further extend the capacity of the Burbo Bank (234 MW) and Walney (750 MW) offshore wind farms, amounting to a total extension of 984 megawatts.
Offshore wind farms in operation and under construction by DONG Energy in the UK:
·         DONG Energy is the sole owner of the 90MW Burbo Bank and 50% owner of the 90MW Barrow project (DONG Energy 50% - Centrica 50%), both of which are in commercial operation in the East Irish Sea.
·         Gunfleet Sands I+II (total 172MW), 100 % owned by DONG Energy, commenced construction in early 2008 and was brought into full operation in March 2010
·         April 2009 DONG Energy announced it was to build the two wind farms Walney I + II (total 368MW) in the Irish Sea (DONG Energy 74,9% - SSE 25,1%). The construction of Walney I has begun, first foundations was installed offshore in the beginning of May 2010. Expected commissioning, 2011.
·         DONG Energy is a partner in the London Array Offshore Wind Farm Project (630 MW) (DONG Energy 50% - E.ON 30% - Masdar 20%) which will be the world’s largest offshore wind farm. The construction of London Array begun in Q1 2010. Expected commissioning, 2013. First power on line, 2012.
·         In December 2010 DONG Energy acquired a 25 % share in the 270 MW offshore wind farm Lincs in the North Sea (DONG Energy 25% - Centrica 50% - Siemens PV 25%). Expected commissioning, 2012.
Exploration and production of oil and gas
DONG Energy has built up experience of oil and gas exploration since 1984 and has a thorough knowledge across all aspects of oil and gas operation and production. DONG Energy produces oil and gas on both the Danish and Norwegian continental shelves. The key focus area of our exploration business in the UK is in the West of Shetland region.
Approximately 17% of the remaining oil and gas resources in the UK are estimated to be located in the West of Shetland area. DONG Energy is the largest licence holder in the West of Shetland region as a partner in 24 licences in the region, of which seven are operated by DONG Energy. Recent discoveries include Glenlivet, Laggan, Tormore, Rosebank, Cambo and Tornado.
In partnership with Total, DONG Energy recently committed to develop the Laggan and Tormore gas discoveries, which will require the construction of the necessary subsea pipelines and infrastructure in order to deliver the production to an onshore terminal. The Laggan and Tormore discoveries are strategically positioned in the area and the pipeline will be a key driver for the future development of the region. First gas production is expected to be in 2014.
DONG Energy already supplies the UK with gas as a result of participation in Norway’s second largest gas field, Ormen Lange. DONG Energy is able to supply the British market with natural gas via the 1,200 kilometres long Langeled pipeline, which runs through the North Sea, ending at Easington on the Eastern Coast of England.
Gas-fired power production
DONG Energy is constructing a 850 MW gas-fired power plant, the Severn plant, in South Wales. DONG Energy acquired the project in March 2009, in line with the company’s plan to reduce CO2 emissions from heat and power production and to complement the company’s existing gas business. The main part of the gas produced at Ormen Lange is sold to partners in the UK, and some will be used at Severn. Severn is under construction and is expected to be commissioned at the end of 2010. It will be one of the most efficient gas-fired power stations in the UK.