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Ørsted has the wind at its back

The world’s leading offshore wind developer will be a big beneficiary of the race to net zero
Ørsted has the wind at its back
  • As more countries set net zero emissions targets, Ørsted is well-positioned to capitalise on growing demand for renewable energy.
  • The nascent US offshore wind market should provide further avenues for growth.
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • Accelerating clean energy transition
  • Global leader in offshore wind
  • Farm down opportunities
  • Fund manager favourite
Bear points
  • Premium valuation
  • Danish tax threat

Formerly the ‘Danish Oil and Natural Gas’ (Dong) company, Ørsted (DK:ORSTED) has transformed itself from a fossil-fuel-intensive business to a renewable energy darling. Seeing the writing on the wall for hydrocarbons much earlier than competitors, the group sold its upstream oil and gas business to Ineos in 2017 and offloaded its liquefied natural gas operations to Glencore (GLEN) in December. The last piece of the green puzzle will be phasing out coal from its Danish power stations – due to happen in 2023. 

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