Orsted will confirm its ambition to reach an installed capacity of 50GW of renewable energy by 2030 during its Capital Markets Day (CMD) on 8 June.
The Danish developer and owner of offshore wind and other renewables assets will confirm its fully self-funded ambition of 50GW installed renewable capacity by the start of next decade and expects to invest Dkr475bn (€64bn) between now and then.
The company has achieved strong progress towards objectives set at the last CMD in 2021 and is on track to outperform its previous EBITDA and return on capital employed (ROCE) targets.
It is on track to outperform the previous financial targets of an average ROCE of 11% to 12% (2020-2027), now expecting 15% in 2020-2027, and EBITDA from offshore and onshore assets in operation of 12% CAGR (2020-2027), now expecting 15% in 2020-2027.
Orsted chief executive Mads Nipper said: “Orsted has delivered strong progress since the CMD in 2021.
“We’ve completed several large projects, including the world’s largest offshore wind farm, we’ve been awarded new capacity, and been able to take FID on a large offshore wind project despite macroeconomic challenges.
“We’re on track to outperform our previous EBITDA and ROCE targets for 2020-2027, confirming the significant value in our portfolio of renewable projects. Today, we confirm our target of ~50 GW in 2030 – one of the largest investment programmes in the green transition.”
Orsted currently operates 15.5GW of renewable energy assets, while 4.9GW is under construction across technologies.
The developer has been awarded an additional 10.6GW and has a renewable project pipeline of 114GW.
For the awarded projects where Orsted has not yet taken final investment decision (FID), it is working to ensure sufficient value creation to take FID, despite increases in interest rates, inflation, and supply chain bottlenecks.
Nipper added: “Orsted has a clear strategic direction and very strong capabilities to capture the massive growth in renewables in the years to come.
“Going forward, we see strong opportunities to build our renewable portfolio, including by investing a majority of our CAPEX in offshore, targeting an unlevered, fully loaded lifecycle IRR at 150-300 basis points spread to WACC at the time of bid or FID, whichever comes first.”
Orsted has taken action with its suppliers to decarbonise its entire supply chain and is on track to reach its science-based targets of 98% carbon emissions reductions (scopes 1 and 2) in 2025 and net zero for the full value chain in 2040.
The developer has entered partnerships with suppliers in relation to low-carbon foundations and towers as well as wind turbine blades made from recycled materials.
In addition, Orsted has committed to reusing or recycling all wind turbine blades and solar panels from its global portfolio with immediate effect and to only commissioning projects with a net-positive biodiversity impact from 2030.
At the CMD, Orsted will announce it has issued blue bonds of €100m to fund investments in projects related to maritime biodiversity and green fuels for shipping.