DONG Energy divests from fossil fuels in favour of renewables
On Wednesday 24 May, Danish wind energy giant DONG Energy announced its plans to divest its upstream oil and gas business for $1.05 billion
On Wednesday 24 May, Danish wind energy giant DONG Energy announced its plans to divest its upstream oil and gas business for $1.05 billion.
Denmark's largest power producer has agreed to sell its complete upstream oil and gas interests to global petrochemical manufacturer INEOS for $1.05 billion, in addition to a $150 million contingent payment based on the Fredericia stabilisation plant, and a second contingent payment of up to $100 million subject to the development of the Rosebank field.
Henrik Poulsen, CEO of DONG Energy, said: “Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the Oil & Gas business.”
He went on to say: “The transaction completes the transformation of Dong Energy into a leading pure-play renewables company.”
According to The Financial Times, DONG Energy leads the offshore wind industry – having constructed a quarter of global operational capacity.
Earlier this month, DONG Energy completed the installation of 32 192 metre-tall wind turbines in the UK.
The 258 megawatt (MW) Burbo Bank extension project is the first time 8 MW turbines have been commercially used anywhere in the world.
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