A Danish energy company that made most of its money from fossil fuels until twelve years ago has reinvented itself as the world`s leading offshore wind power producer. With this business transformation, it became a spectacular role model in the energy sector as a more than $48 billion renewable energy firm, in 2020.
The parent fossil fuel energy company was formed in 2006 after a merger of six Danish energy companies. Up until 2007, its emissions accounted for one-third of Danish CO2 emissions. Coal was the predominant source of energy and the company`s generation system was known as one of the dirtiest in the world. Additionally, 15% of its revenues came from the oil & gas exploration business till 2010.
Until 2009, 85% of the company`s energy production was powered by coal and only 15% by renewables. It announced a major turnaround seeking to generate 85% of energy from renewable sources.
The company sold eight of its businesses—including gas firms, hydro and waste-fired power plants—and took loans to raise capital. With this capital, it acquired a wind turbine installation company and entered into the world`s largest offshore wind turbine agreement with a wind turbine manufacturer. Under the agreement, 500 turbines were manufactured and installed across Northern Europe for the company.
With aggressive investment in offshore wind, the company phased out coal. By 2019, it had become the world’s largest producer of offshore wind energy. It also raised its renewable-generation share to 86 percent—hitting its target 21 years ahead of schedule.
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