New company name reflects a profound strategic transformation from fossil fuels to renewable energy
BOSTON--(BUSINESS WIRE)--DONG Energy today announced that the company will change its name from DONG Energy to Ørsted. The decision follows the global energy companys profound strategic transformation from black to green energy and the recent divestment of its upstream oil and gas production. The company will also phase out all use of coal by 2023.
@DONGEnergyUS is changing its name to #Ørsted.
Noting that the DONG Energy name no longer accurately reflects the activities and ambitions of the company, company leaders called for an Extraordinary General Meeting to ask the shareholders of the company to approve a change of the company name to Ørsted.
The announcement was made at an early morning town hall in Denmark. The new name and branding is available at Orsted.com.
Thomas Thune Andersen, Chairman of the Board of Directors, says:
"DONG was originally short for Danish Oil and Natural Gas. With the divestment of our oil and gas production and the fact that we have decided to stop using coal, this is no longer who we are. With our profound transformation to green energy, it is the right time to change our name to reflect who we are becoming."
"Our vision is a world that runs entirely on green energy. Climate change is one of the most serious threats to the global ecosystem, and we believe that we need to change the way we power the world. With our own transformation, we fully support the change to green energy," Thomas Thune Andersen concluded.
From green transformation to green growth
Over the past decade, DONG Energy has transformed from an energy company based on coal and oil to a global leader in renewable energy. The company increased earnings considerably, while building new offshore wind farms and reducing the use of coal on its power stations.
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs and operates offshore wind farms, bioenergy plants and innovative waste-to-energy solutions and provides smart energy products to its customers. Headquartered in Denmark, Ørsted employs 5,600 people. Ørsted's shares are listed on Nasdaq Copenhagen [Orsted as of 31 October]. In 2016, the company's revenue was DKK 61 billion (EUR 8.2 billion). For more information on Ørsted, visit orsted.com or follow us on Facebook, LinkedIn, Instagram and Twitter.
Henrik Poulsen, CEO of DONG Energy, says:
"Today, we are entirely dedicated to green energy. Our focus going forward will be on green growth based on our existing business platforms in offshore wind, biomass, green customer solutions and advanced waste to energy solutions. We will also explore new green growth opportunities strengthening our existing platform and decide if they support our vision, provide a strong competitive position and create value for our shareholders."
"The global green energy transition is not only possible. It is makes financial sense for society. This year a German offshore wind tender as well as the award of the giant UK offshore wind farm Hornsea 2 marked the fact that offshore wind has become cheaper than fossil fuels."
DONG Energy in North America
DONG Energy entered the North American market in 2015, acquiring rights to Bay State Wind, a proposed offshore wind farm in Massachusetts, 15 miles off the coast of Marthas Vineyard. The company has continued to deepen its connection to Massachusetts, partnering with Eversource for Bay State Wind, and opening its North America headquarters in Boston, MA.
Thomas Brostrøm, President of DONG Energy, North America says:
"The new Ørsted name and branding reflects a commitment that we brought with us to North America - to provide green and cost effective, utility scale energy that provides economic opportunities to the communities where we operate. We are proud to reflect the spirit of innovation and ambition that drives our company, as well as this region of the globe."
Since entering the North American market, DONG Energy has initiated additional projects:
Developing our Ocean Wind project, a proposed offshore wind farm in New Jersey, off the coast of Atlantic City.
Partnering with Dominion Energy to build two offshore wind turbines approximately 27 miles off the coast of Virginia Beach, VA - the critical first phase of the 2000MW Coastal Virginia Offshore Wind project.
Signed a letter of intent with NaiKun Wind Energy Group to negotiate a joint development agreement for the Haida Energy Field Offshore Wind Farm in British Columbia, CAN.
Established a U.S. based team to explore new business opportunities in storage.
Established a new Corporate Ventures unit in Silicon Valley, CA to explore emerging energy technologies and long-term business opportunities.
The new name and brand
The new name - Ørsted - references the innovative Danish scientist Hans Christian Ørsted (1777-1851). Ørsted spearheaded several scientific discoveries, including the discovery of electromagnetism in 1820, which helped lay the scientific foundation for how todays societies are powered.
As part of becoming Ørsted, a new logo and brand identity will be introduced. The new brand identity is inspired by the Danish design tradition in being simple, functional, human and supporting a sustainable way of life. The brand identity will consist of a full spectrum of colors, inspired by Scandinavian nature and the Danish artist Vilhelm Lundstrøm.
Henrik Poulsen says:
"We have undertaken significant efforts to find the right name and brand identity for our company. Our new name recognizes H. C. Ørsteds curiosity, dedication and interest in nature and our brand identity speaks to the innovation and profound understanding of nature, which is vital to create a world that runs entirely on green energy."
Extraordinary General Meeting
The planned name change will necessitate an amendment of the companys Articles of Association. An Extraordinary General Meeting will be held on October 30, 2017 to formally decide the name change.
The resolution to amend the Articles of Association requires that at least 50% of the share capital is represented at the general meeting, and that the resolution is passed by at least two-thirds of the votes cast as well as of the share capital represented at the general meeting.
As a consequence of the name change, DONG Energy will change its stock exchange ticker to Orsted. The change in ticker will become effective from start of trading on October 31, 2017, assuming a positive outcome at the general meeting.
The roll out of the new name and design across the markets in which DONG Energy is present, will take place on November 6th.
The information in this announcement does not change DONG Energys previous financial guidance for the financial year 2017 or the announced expected investment level for 2017.
More on H.C. Ørsted
Hans Christian Ørsted was born in Rudkøbing in the Southern part of Denmark in 1777. He graduated in pharmacology from the University of Copenhagen in 1797 and became a professor in 1806.
Throughout his prestigious career as a physicist, Ørsted was deeply involved in studying how the forces of nature interrelated.
His interest in nature, curiosity and persistent pursuit of answers led him to discover electromagnetism in 1820. H. C. Ørsteds discovery was immediately widely recognized in science and helped pave the way for numerous technological advances, amongst others power production.
His drive for fresh thinking led the University of Copenhagen to develop a comprehensive physics and chemistry programme and establish new laboratories under his guidance. In 1829 H.C. Ørsted established the Royal Danish Polytechnic Institute, now DTU, of which he was the first director.
H.C. Ørsted became an important figurehead not only within physics, but also within philosophy, poetry and aesthetics. He was a published writer and poet, his main work being the book "The Soul in Nature" (1850). The collection of articles presents his life philosophy and views on a wide variety of issues. H.C. Ørsted was a close friend to the fairytale writer Hans Christian Andersen.
He was married to Inger Birgitte Ballum. They had seven children. H. C. Ørsted died in 1851 at the age of 73. He is buried in Copenhagen at Assistens Cemetery.