Ørsted North America Thyge Boserup, Senior Vice President, Development, Regulatory and Markets. Copenhagen 19 April 2018

Transcription

1 Ørsted North America Thyge Boserup, Senior Vice President, Development, Regulatory and Markets Copenhagen 19 April 2018

2 Thyge Boserup, SVP Head of Development, Regulatory & Markets Development, Regulatory & Markets 2018 Senior Vice President, Ørsted Wind Power Head of Development, Regulatory and Markets Senior Director, Ørsted Wind Power Head of Market & Project Development Owner, TB advisory Independent advisor Executive Vice President, Saxo Bank A/S Chief Commercial Officer Vice President, Danisco A/S Head of Corporate Development Senior Vice President, ISS A/S Head of Corporate Affairs and Investor Relations Wind Power Strategy & Innovation QHSE EPC Operations Partnerships & Asset Management Country Management 1

3 Our vision is to create a world that runs entirely on green energy Headquartered in Denmark Listed in the Nasdaq OMX: ORSTED 5,638 employees Revenue in 2017 DKK 59.5 bn (GBP 7.1 bn / EUR 8.0 bn) EBITDA in 2017 DKK 22.5 bn (GBP 2.7 bn / EUR 3.0 bn ) Phase out the use of coal by % * Wind Power Develops, constructs, owns and operates offshore wind farms in Denmark, Germany, the Netherlands and the UK Development projects in Taiwan and the USA 4% * Bioenergy & Thermal Power Generates and sells power and heat to customers in Denmark and Northwestern Europe 13% * Distribution & Customer Solutions Power distribution grid on Zealand and sale of power and gas to customers in Northwestern Europe * Share of the Ørsted Group s capital employed, Annual Report

4 Significant transformation of Ørsted over the past decade CO 2 emissions halved g/kwh Operating profit (EBITDA) tripled DKK bn Business transformed Share of capital employed % International expansion Share of operating profit (EBITDA) % 462 ~50% 3.6x International share >5x % 0% 16% % 84% %

5 Ørsted Wind Power overview Global footprint USA Europe Asia Pacific Unparalleled experience and track record Bay State Wind Boston office Taipei office Ocean Wind Coastal Virginia Formosa 1.1 Formosa 1.2 Greater Changhua projects 25+ years of experience 1991 and track record in the 2018 offshore wind power sector In operation Walney Extension Walney 1 & 2 Isle of Man Barrow Under construction Under development Burbo Bank Ext. Burbo Bank West of Duddon Sands Horns Rev 1 & 2 Westermost Rough Hornsea 1 Hornsea 2 Hornsea 3 & 4 Race Bank Lincs Gunfleet Sands 1 & 2 Gunfleet Sands 3 Borssele 1&2 London Array Anholt Middelgrunden Vindeby Nysted Gode Wind 2 Gode Wind 3 & 4 Gode Wind 1 Borkum Riffgrund 1 Borkum Riffgrund 2 Nördlicher Grund Avedøre Borkum Riffgrund West 1&2 OWP West 23 offshore wind farms in operation 4.4 GW Constructed capacity 8.8 million people with clean electricity ~ 2,300 Dedicated employees 4.1 GW World's leading operator 5 offshore wind farms under construction 4.5 GW under construction 16 Partnerships Decommissioned after 25 years 4

6 Market Potential for Offshore Wind in the U.S. States committed to procure 8-10 GW by BOEM has identified 1.4m acres of OSW lease areas CALIFORNIA 33% by 2020; 40% by 2024; 45% by 2027; 50% by 2030 GHG: Reduce GHG emissions to 1990 levels by 2020; 80% reduction below 1990 levels by 2050 HAWAII West Coast 30% by 2020; 40% by 2030; 70% by 2040; 100% by 2045 MA RI CT NY NJ MD VA NC DE East Coast Active Ørsted Market State with OSW activities VIRGINIA (VA) Voluntary, 15% by 2025 Dominion has rights to demonstration project and commercial lease area with expected capacity of 2.0 GW CONNECTICUT (CT) 27% by 2030, goal to increase to 40% by 2030 RfP to procure 200 MW of renewables as part of best in class solicitation 25% by MARYLAND (MD) Awarded 370 MW PPA s for two OSW projects NORTH CAROLINA (NC) 12.5% by 2021 for Investor Owner Utilities; 10% for co-operatives and municipal utilities MASSACHUSETTS (MA) 15% by 2020 and additional 1% each year after. OSW Carve-out: 1,600 MW of electricity by June 2027 RHODE ISLAND (RI) 14.5% by 2019, increasing 1.5% ea. year until 38.5% by Renewable goal of 1GW by RFP to procure 400 MW of clean energy by Q % by 2030 NEW JERSEY (NJ) 24.5% by OSW goal of 1,100MW Governor Phil Murphy (D) enacted Executive Order to procure 3.5GW by 2030 NEW YORK (NY) On January 2017 Gov. Cuomo announced goal of 2.4 GW of new OSW development by 2030 DELAWARE (DE) 25% by % compliance multiplier for OSW 5

7 Ørsted s Footprint in North America Footprint tied to states supporting OSW and renewable energy solutions Ørsted North American HQ Boston, MA New Bedford, MA Martha s Vineyard, MA New York, NY Atlantic City, NJ DE Corporate Ventures San Francisco, CA Richmond, VA DE Energy Storage Solutions Austin, TX 6

8 Key Milestones January - BoD approval to enter US and MA - RES/DE win MA lease in BOEM auction April - RES America s transfers Massachusetts Lease to DE/Q U.S. September - People on the ground in temporary office space November - Front page Boston Globe story on DE/Ø s entrance in the U.S. and Massachusetts project May - DE/Ø completes acquisition of New Jersey project and announces Ocean Wind July - Omnibus energy bill passed in Massachusetts, includes 1.6 GW. December - DE/Ø U.S. announces Joint Venture Partnership with Eversource April - DE/Ø U.S. opens its North American HQ in Boston June - Bay State Wind receives first offshore wind Site Assessment Plant Approval in the Unite States July - DE and Dominion announce partnership on Virginia offshore wind project December - Submitted first bid in Massachusetts 7

9 Case Study How are We Engaging? Political Federal & State Govt. hired lobbyist at the federal and state level to help build relationships and navigate regulatory and policy frameworks Local Govt. hired community liaisons at the local level to help build relationships with mayors, city councilors, and community groups Trade Associations engaging through diverse trade associations to promote industry goals in multiple venues Community Stakeholder Engagement engaging through stakeholder groups like; chambers of commerce, rotary organizations, community groups (Boys and Girls Clubs, United Way) Sponsorships working with organizations to support their community events by sponsorship, which helps increase brand awareness and demonstrates being a good corporate partner 8

10 How to conduct business in the US lessons learned There are major differences in business conduct compared with Northern Europe Politics and business depends heavily on personal relationships Sell your idea before going into details Every state is different (consider it as a different country) There is a high degree of attention from the media 9

11 Q&A