Danish clean energy major Ørsted A/S (CPH:ORSTED) is changing its organisational structure, with effect from November 1, to be better able to navigate through an increasingly complex environment and continue to drive growth, according to an announcement today.
Group president and chief executive Mads Nipper said that while there are unprecedented political ambitions and market possibilities within renewables, the operating environment is becoming more complex “with increasingly diversified local requirements, new needs and demands from customers, a shift towards integrated energy systems, and not least fierce competition.”
The company will replace its existing corporate structure with a Commercial area and an Onshore business with three regions: Europe, Americas, and APAC (Asia-Pacific). The Power-to-X organisation (P2X) will remain a global business area as will EPC, Operations & IT, but with partly regionalised operations.
With the revamp, the company is moving closer to markets and customers and integrating its offshore and onshore renewables organisations, Nipper said. “At the same time, we’re empowering our market organisations to ensure simpler and faster decision-making processes,” he added.
Ørsted will continue to report financial results in three segments: Offshore, Onshore, and Bioenergy & Other.
As the reorganisation will abolish the Commercial business area, Ørsted’s chief commercial officer and deputy group CEO Martin Neubert will step down by the end of October to continue his career outside the company after almost 15 years at Ørsted.
There will be changes to the executive management with six new members of the Group Executive Team. Rasmus Errboe will be Executive Vice President and CEO of Region Europe; David Hardy -- Executive Vice President and CEO of Region Americas; Per Mejnert Kristensen will become Senior Vice President and President of Region APAC; Olivia Breese will take over as Senior Vice President and Head of Power-to-X; Anders Zoega Hansen -- Senior Vice President and Head of Legal; and Ingrid Reumert -- Senior Vice President and Head of Global Stakeholder Relations.
Neil O’Donovan, now CEO of Ørsted’s onshore business, will become Executive Vice President and Head of Strategy, Portfolio & Partnerships.
Ørsted previously changed its organisational structure in January 2021. This involved replacing its structure with three business units, Offshore, Onshore and Markets & Bioenergy, with a “primarily functional structure” comprising Commercial and EPC & Operations, while keeping the Onshore business as a separate unit.
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Martin Neubert. Image by Ørsted (orsted.com)
