Orsted's newly appointed CEO, Rasmus Errboe, has emphasized a focused approach to the company's offshore wind development, particularly on its 8.4GW under construction, after revising its capacity target and cutting spending by 25%. The company has scaled back its previous goal of 35-38GW, prioritizing the completion of projects already in progress.
Errboe affirmed that the company would maintain a “relentless” focus on its 8.4GW offshore wind portfolio, which includes major projects across multiple regions. These include the Gode Wind 3 and Borkum Riffgrund 3 projects in Germany, the 920MW Changhua 2b and 4 in Taiwan, the 704MW Revolution Wind and 924MW Sunrise Wind in the U.S., the nearly 3GW Hornsea 3 in the UK, and the 1.5GW Baltica 2 project in Polish waters.
Errboe stated, “We will sharpen our geographical and technological footprint, and we will prioritise our business platform at all times to ensure a disciplined and strict capital allocation focusing on value over volume.”
He added that Orsted would be focusing on “diligently monitoring and mitigating risks, while we recognise that the supply chain remains challenging.” Despite the company's scaled-back ambition, Errboe confirmed that Orsted would continue its ongoing projects but indicated that there would be a focus on “rightsizing” its cost base and organization over time. He noted, however, that it was too early to determine the specific impact on the company's structure.
On the two U.S. projects, Revolution Wind and Sunrise Wind, which have already taken impairments, Errboe did not rule out the possibility of further write-downs. “We will continue to diligently monitor and move forward with the construction of the projects,” he said, without specifying whether additional impairments were planned.
When asked about potential market pullbacks or projects the company may scale back as part of its revised investment strategy, Errboe declined to provide further details.
