Martin Neubert, Deputy CEO of Orsted
Martin Neubert, Deputy Chief Executive Officer (CEO) of Orsted (Denmark), the largest offshore wind power generation company, responded to an online interview with the Nihon Keizai Shimbun. He stressed that "the cost of electricity cannot be reduced continuously" in the face of a wave of high prices following the invasion of Ukraine. He acknowledged that the impact of renewable energy on power generation costs is inevitable.
The prices of materials used in wind turbines, such as copper, iron and nickel, have risen since Russia's invasion of Ukraine. Mr. Neubert said that renewable energy "is still far more attractive to society than fossil fuels," but that "it is reasonable to assume that costs such as material and labor costs will increase." I asked for understanding on the price increase.
Europe will promote diversification of energy procurement. "Renewables will not fix the current energy crisis in the short term, but in the medium to long term they will be the answer to Europe's independence from imported fossil fuels," he said. In order to increase the introduction of renewable energy, he pointed out, "It is necessary to simplify the licensing procedures and increase the number of bids. In particular, it is important to allocate space for the development of offshore wind power generation."
Orsted has its origins in oil and gas development. Adapted quickly to the trend of decarbonization, wind power and solar power account for the majority of sales now. The goal is to increase power generation capacity from 11 million kilowatts at the end of 2021 to 50 million kilowatts by 2030. "We will invest 350 billion Danish kroner (about 6.5 trillion yen) by 2027 to speed up construction."
In 2016, the company entered the Asian business, starting with Taiwan. In addition to Japan, the company also operates in South Korea and Vietnam. He called for the development of infrastructure, including ports and power grids, for the development of wind power generation markets in Asia.
In Europe and the United States, efforts to produce next-generation energy such as green hydrogen from renewable energy have entered the practical stage. Orsted will also invest aggressively. In collaboration with AP Moller-Maersk (Denmark), a major shipping company, it has announced plans to produce methanol derived from renewable energy in the Gulf of Mexico in the United States and use it as fuel for ships.
Mr. Neubert said, "Although it is not possible to run a ship on electricity, it is possible to make green hydrogen from renewable energy and synthesize methanol to indirectly electrify it (without emitting CO2 during operation)." He hoped that the decarbonization of the shipping industry could be nurtured into future revenue streams.
