Ørsted: Leadership Shakeup and Offshore Market Challenges

Ørsted, a Danish renewable energy specialist, is undergoing a major reshuffle following difficulties in the U.S., with the resignation of its CEO and the appointment of his deputy.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

The Danish company Ørsted, renowned for its transition from fossil fuels to renewable energy, is experiencing a turbulent period. The challenges encountered in the American market, along with issues in the supply chain and rising interest rates, are prompting the group to reassess its management strategy.

Context of the Shakeup

The CEO, Mads Nipper, who had been in office for four years, announced his immediate resignation. He is replaced by Rasmus Errboe, his deputy who has been with the group for 13 years. This leadership change comes at a time when Ørsted has suffered a loss of investor confidence, as evidenced by an approximately 80% drop in stock value since January 2021. Recent announcements have revealed significant impairments, notably €1.6 billion in January, due to delays in offshore wind projects in the United States.

The offshore market faces multiple obstacles.

Challenges in the Offshore Market

Delays in the Sunrise Wind project, located off the coast of Montauk in New York State, exemplify the complex regulatory and logistical environment in the U.S. The Trump administration’s decision to freeze operating permits has exacerbated these difficulties, resulting in notable financial losses for the group. Bottlenecks in the supply chain and unfavorable changes in financing conditions further complicate the implementation of wind projects.

The current challenges are prompting Ørsted to reorient its priorities.

Responses and Perspectives

In response to these issues, the board, chaired by Lene Skole, has indicated a “change in orientation” to tackle the new market constraints. The strategy adopted includes reinforcing the European portfolio, with the group set to release its annual results on February 6. Additionally, state support initiatives are being considered, with the possibility of aid to guarantee 2 to 3 GW of offshore wind capacity, addressing the difficulties encountered during a previous tender process.

The investment by the Norwegian operator Equinor, which now holds 9.8% of the capital, underscores the significance of strategic repositioning in a rapidly evolving sector.

French group Valorem has commissioned the ViIatti wind complex in Finland, made up of two farms totalling 313 MW and an estimated annual output of 1 TWh.
The Revolution Wind project, already 80% complete, has been halted by the U.S. administration over national security concerns, creating major uncertainty in the sector.
Quebec funds a mobile training unit to address the shortage of wind turbine maintenance technicians, estimated at 400 positions by 2029.
The United States Department of Commerce is assessing the strategic impact of wind turbine imports amid rising tariffs and supply chain tensions.
Six turbines installed by RWE on recultivated land near the Inden mine will supply electricity to around 24,000 households, while two new units are already planned.
Buchan Offshore Wind has submitted its marine consent applications to the Scottish authorities for a large-scale floating wind project, marking a strategic step in energy development in northeast Scotland.
The VSB Group has completed the repowering of the Elster wind farm in Germany, replacing 50 turbines with 16 new Siemens Gamesa machines, increasing the total capacity from 30 to 105.6 megawatts.
The EBRD’s additional financing will raise the capacity of the Gvozd wind farm to 75 MW, making it the largest in the country. This project, led by EPCG, marks a key industrial milestone in Montenegro’s energy sector.
The Russian Ministry of Industry and Trade is announcing "Arctic configuration" wind generators to power infrastructure on the Northern Sea Route, without listing any companies at this stage, with the stated aim of technological sovereignty.
The Danish turbine manufacturer posted a 14% increase in quarterly revenue, despite a sharp drop in order intake and negative cash flow.
German authorities have approved two onshore wind projects totalling more than 86 MW, with commissioning planned from 2027.
Ørsted strengthens its financial structure with a rights issue backed by the state, following the failed partial sale of the US Sunrise Wind project.
Forestalia has signed a ten-year power purchase agreement with Galp Energia Espana to refinance a 42.7 MW wind farm in Aragon, securing stable revenues through coverage of 65% of its annual production.
Encavis AG continues its growth in Germany with the acquisition of a 34-megawatt wind project in Sundern-Allendorf, sold by PNE AG and secured by a twenty-year feed-in tariff.
The last monopiles manufactured by Navantia Seanergies and Windar Renovables have been delivered to Iberdrola for the Windanker offshore project, marking a major milestone for the European XXL offshore wind component manufacturing industry.
Envision Energy's two-blade prototype has now reached over 500 days of continuous operation, achieving a 99.3% availability rate and confirming its potential compared to industrial standards.
RWE signs long-term agreements with North Star for four new service vessels, strengthening maintenance of its offshore wind farms in the United Kingdom and Germany amid a tight market for specialised maritime capacities.
AMEA Power partners with Cox for the second phase of the Agadir desalination plant, set to reach 400,000 m³/day with power supplied by a 150 MW wind farm in Laayoune.
Buhawind Energy Northern Luzon Corporation secures grid connection study approval, bringing the launch of one of Southeast Asia’s largest offshore wind projects closer.
France receives approval from the European Commission for a major public financing of EUR 11bn aimed at three floating wind projects totalling 1.5 GW, with a framework strengthening the national industry.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.