Ørsted eyes net-zero emissions by 2025, total carbon neutrality by 2040

Source: Ørsted A/S

January 30 (Renewables Now) - Danish pure-play renewables company Ørsted A/S (CPH:ORSTED) announced today it aims to become the first major energy company to reach net-zero emissions in its operations and energy generation by 2025.

The plan envisages a complete phase-out of coal by 2023 and the installation of about 20 GW of offshore and onshore wind by the middle of the decade. Ørsted has pledged to invest DKK 200 billion (USD 29.5bn/EUR 26.8bn) in green energy in the period 2019-2025, it added.

"A decade ago, we were one of Europe's most coal-intensive utilities, and by 2025, we'll be carbon neutral," commented CEO Henrik Poulsen.

So far, Ørsted has lowered its carbon emissions by 86% compared to 2006 and will work to achieve a reduction of at least 98% by 2025. The company said it will also seek ways to cut its remaining emissions, which come from various sources where emissions are harder to abate. One solution is to cease buying or leasing fossil-fuelled cars as of 2021 and then shift entirely to electric vehicles (EVs) by 2025.

The company targets achieving carbon neutrality across its entire carbon footprint by 2040 by gradually phasing out natural gas trading activities, whilst raising the green share of power traded. Ørsted will also push suppliers to cut their own carbon emissions and run their operations on green energy.

One interim goal is to lower emissions from energy trading and in the supply chain by 50% by 2032, as compared with 2018.

The Danish offshore wind major pointed out that its carbon emission reduction targets are science-based targets that are approved by the Science-Based Targets initiative (SBTi).

(DKK 1.0 = USD 0.147/EUR 0.134)

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