DONG energy to use oil business to fund further investment in renewables
Danish energy giant is planning to keep its exploration and production division but use its proceeds to fund investment into offshore wind and bio-energy sectors.
DONG energy has shown its increased optimism in the future of renewable energy by announcing plans to use income from its fossil fuel business to directly fund further investment in renewable energy.
Following the completion of a strategic review of its oilfield exploration and production (E&P) business last week, the Danish oil and gas giant confirmed it intended to focus investment in clean energy, with a portfolio based on offshore wind, bioenergy and green distribution.
"Going forward, the cash flows from E&P will be part of funding Dong Energy's investments in renewable energy," the company said in a release, adding that this strategy would reinforce the firm's position as a "global leader in renewables".
The firm, which is majority owned by the Danish government, launched the strategic review in September last year. The company produced an average of 115,000 barrels of oil and gas a day in 2014, with the majority coming from Norwegian fields.
Last month the firm announced plans to spend £6bn over the next four years to develop further offshore wind farm sites in the UK, on top of the £6bn it has already spent. The company, which is the largest operator of offshore wind farms in Britain, divested of all of its onshore wind projects at the end of 2014.