Bloomberg reported that Dong Energy AS plans to invest about DKK 10 billion a year on offshore wind projects to offset a challenging environment for gas plants as it ceases to build new coal power facilities.
Mr Anders Eldrup CEO of Dong Energy said that "That's about what the world's largest developer of offshore wind parks spent in 2011 on turbines installed at sea. We think that is around that level we will be working at in the coming years."
Dong announced that Mr Eldrup, who spoke in an interview on March 9th 2012, is stepping down as CEO. Finance director Mr Carsten Krogsgaard Thomsen will be acting CEO until a new chief executive is found and there will be no change in the company's strategy.
According to Bloomberg calculations using broker data, Dong is focusing on renewable sources for electricity generation to shift from fossil fuels and cut emissions as the rising cost of gas depresses profits for burning the fuel. Profitability of burning gas in the UK has fallen 75% to GBP 1.62 a megawatt hour in the last six months.
Mr Eldrup said that "It seems to be quite challenging times for the CCGTs or combined cycle gas turbine plants. The company doesn't have precise investment plans for new plants as they are not very profitable now."
Dong operates gas fired power plants in Norway, Denmark and the Netherlands and opened its first in the UK in south Wales in 2011.
Mr Eldrup said that "It's a combination of the price of gas to the price of power because it is that conversion that gives a margin."