Dong increases UK presence as earnings rise

Monday, Mar 14, 2011

Dong Energy will open a dedicated unit to service its £2.5bn worth of UK offshore wind investments as the Danish utility looks to further increase the profitability of its global renewables business.

The company's stakes in the 172MW Gunfleet Sands wind farm, 90MW Burbo Bank and 90MW Barrow projects mean that Dong accounts for 23 per cent of the UK's operational wind power, according to the company'sannual report which was published earlier today.

It also confirmed it has about 1,400MW of new capacity under construction in the shape of the giant London Array wind farm, as well as Lincolnshire and Walneydevelopments.

This expansion, combined with substantial offshore wind and hydro power projects in Denmark, pushed profits from the company's renewables division up to DKK1.7bn (£200m), accounting for 12 per cent of the energy giant's overall profit before tax and interest.

"The sound improvement is a testimony to the many new initiatives put in place to boost earnings. Especially in the green area, the new offshore wind farms, Horns Rev 2 and Gunfleet Sands, are contributing to earnings," said company chief executive Anders Eldrup. "We have thus made good progress in the transition to clean and reliable energy."

Combined, Dong's wind and hydro assets produced four terawatt-hours of power last year, equating to about a fifth of the company's overall output. Wind accounted for 15 per cent and hydro five per cent.

Source: Business Green