October 2, 2017 Read More →

Danish Oil and Natural Gas Is Getting Out of Oil and Natural Gas

Wall Street Journal:

A company whose name stands for Danish Oil and Natural Gas is getting out of both businesses.

Dong Energy Denmark’s majority state-owned energy company, is selling off its last oil and natural-gas fields in a deal expected to close by the end of September. The billion-dollar-plus sale is part of a broader plan to significantly reduce the company’s exposure to fossil fuels and produce energy primarily from renewable sources.

With the help of a sizable infusion of cash from Goldman Sachs Group Inc., GS +0.81% Dong Energy over the past few years has transformed itself from one of Europe’s most coal-intensive utilities and a small regional oil competitor into the world’s biggest producer of offshore wind power.

Dong’s wind turbines off the coasts of Europe have almost triple the wind-power-generating capacity of Sweden’s Vattenfall AB, the company’s nearest rival. Now Dong has set its sights on helping to establish the U.S. offshore wind industry, looking at three new projects off the East Coast.

On the outskirts of Denmark’s capital, the company’s largest power plant is now burning wood pellets—a renewable energy source despite some concerns over their environmental credentials. By 2023 the company intends to go completely coal-free, though some of its power plants will continue to burn natural gas.

Dong used to be one of the most coal-intensive utilities in Europe, but now it has become the world’s largest offshore wind producer and plans to phase out coal altogether by 2023.

Dong’s transformation comes as global oil-and-gas companies wrestle with the prospect of oil demand plateauing amid a push to tackle climate change. Companies such as Royal Dutch Shell PLC, Norway’s Statoil ASA and France’s Total SA are also building their renewable businesses and betting billions on an energy future where oil plays a diminished role.

More: ($) Danish Energy Company Is Turning the Page on Oil and Gas

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