Public DONG ENERGY LEADING THE ENERGY TRANSFORMATION Rena Paziorek, Local Stakeholder Manager Annual Plenary Meeting Wadden Sea Forum Wilhelmshaven, 1.&2. November 2017 0 We have become too green for our name DONG is originally short for Danish Oil and Natural Gas. Over the past decade, we have transformed from an energy company based on coal, oil and natural gas to a global leader in renewable energy and a world leader in offshore wind. In line with our green transformation we have sought to find a name that reflects the green energy company we are today. In 2017, we divested our upstream oil and gas business, and by 2023, we will be completely coal-free. 1 1
Why Ørsted? Almost 200 years ago, the Danish scientist Hans Christian Ørsted discovered electromagnetism, establishing the foundations for the way we produce power today. Hans Christian Ørsted s groundbreaking discovery was driven by his curiosity, dedication and interest in nature. These qualities also characterise us as a company and are essential to changing the way we power the world. From black to green. 2 Time plan for the brand change 01 02 03 2nd October 2017 Announcement of name change 30th October 2017 General meeting 6th November 2017 Name & brand change 2
Let s create a world that runs entirely on green energy. Public DONG Energy at a glance Headquarters in Denmark Listed in the Nasdaq OMX: DENERG 5,600 employees Divestment of Oil & Gas business to INEOS Phase out the use of coal by 2023 84% * 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 12% * Distribution & Customer Solutions Power distribution grid on Zealand and sale of power and gas to customers in Northwestern Europe * Share of the DONG Energy Group s capital employed ** On 24 May. 2017 DONG Energy entered into an agreement to divest its upstream oil and gas business to INEOS. On 29 Sep. 2017 DONG Energy completed the divestment of its upstream oil and gas business to INEOS. *** Following the profound strategic transformation from black to green energy and the recent divestment of the upstream oil and gas production to INEOS, the name DONG Energy does not fit the company anymore. Consequently, DONG Energy will change its company name to Ørsted from 6 Nov. 2017 5 3
Significant transformation of DONG Energy over the past decade CO 2 emissions halved g/kwh Business transformed Share of capital employed 1 % (50%) 462 24% 0% 16% 224 60% 84% 16% 2006 2016 2006 2016 1. Excluding unallocated capital employed on DONG Energy group level 6 Public DONG Energy Wind Power overview DONG Energy Wind Power geographical footprint USA Europe Bay State Wind Asia Pacific Unparalleled experience and track record Boston office Taipei office Ocean Wind Coastal Virginia Formosa 1.1 Formosa 1.2 Greater Changhua projects 25+ years of experience and track 1991 record in the offshore wind sector 2017 Walney Extension West of Duddon Sands Isle of Man Barrow In operation Under construction Under development Burbo Bank Ext. Burbo Bank Anholt Middelgrunden Walney 1 & 2 Horns Rev 1 & 2 Westermost Avedøre Rough Hornsea 1 Hornsea 2 Vindeby Hornsea 3 & 4 Nysted Race Bank Gode Wind 2 Lincs Gode Wind 3 & 4 Gunfleet Sands 1 & 2 Gode Wind 1 Borkum Riffgrund 1 Borkum Riffgrund 2 Gunfleet Sands 3 Borssele 1&2 London Array Nördlicher Grund Borkum Riffgrund West 2 OWP West 22 offshore wind farms in operation 3.8 GW Constructed capacity 7.7 million Europeans with clean electricity 2,000 Dedicated employees 3.5 GW World's leading operator 7 offshore wind farms under construction 5.0 GW under construction 15 Partnerships Decommissioned after 25 years 7 4
Rapid technological development Offshore Wind Farms in Germany 9 5
DONG Energy s commitment in Germany Borkum Riffgrund West Borkum Cluster Gode Wind Cluster In operation Under construction / development Awarded wind farms other wind farms Borkum Juist Norderney Norden German Projects Borkum Riffgrund 1: 312 MW, in operation Gode Wind 1: 330 MW, in operation Gode Wind 2: 252 MW, in operation Borkum Riffgrund 2: 450 MW, under construction OWP West: 240MW, awarded Borkum Riffgrund West 2: 240 MW, awarded Gode Wind 3: 110MW, awarded Our engagement: Offices in Hamburg and Norddeich with about 200 employees Investments of more than EUR 5 bn so far Planning/ Development Operation Ownership Construction 10 Norddeich: Our site and our local commitment Development September 2013: Inauguration Site&Construction Office April 2015: Inauguration O&M Office Growing number of employees DONG Energy sees itself as part of the region Commitment on three leveles: 1. Economical recruitment of mainly local employees, using mainly local suppliers, founding member of the Offshore NETzes Norddeich 2. Social - Support of local Events 3. Ecological Cooperation Seal Sancutry Norddeich, recently Member Wadden Sea Forum 11 6
Borkum Riffgrund 1: Our first German offshore wind farm Location Distance to shore: ~54km from the German coast Water depths: Ranging from 23m 30m Wind resource Strong wind resource and high number of full load hours Borkum Riffgrund 1 Tariff regime High fixed price tariff for 8 years after commissioning Permit and grid connection Proven technology BKR01 is fully permitted for 78 turbines for 25 years 77 monopile foundations, one suction bucket jacket prototype 12 Borkum Riffgrund 1: Overview Offshore Converter station DolWin 1 Export Cable Offshore substation Array cables Foundations The DolWin1 converter station has a capacity of 800MW and is connected to the substations from BKR01 and neighbouring windfarms. Here the electricity generated by the windfarms is converted into direct current before transporting it to the grid in Dörpen, Germany, where it is converted to alternating current and fed into the grid The converter station and the export cables are constructed, operated and maintained by the transmission system operator, TenneT The offshore substation bundles the electricity and sends it via a high voltage cable to the converter station The array cables transports the electricity from the individual turbines to the offshore substation Monopile foundations are suitable for sea bed conditions at site A transition piece is installed on the monopile foundation as the connection piece for the tower and turbine The turbines will be installed in five lifts: tower, the nacelle and three rotor blades 13 7
Offshore Substation Offshore Substation The substation is designed as an unmanned platform, service and maintenance will be carried out during normal working hours Max capacity: 12 people Topside 65 m The design allows the substation to handle various voltages It is controlled from shore via a control centre communicating with the station From 34 KV to 155 KV Via Optic fibre cable Gross weight of the whole structure 3,500 tonnes Cross sectional area of the topside structure 465 square meters The weight of the topside alone 1,850 tonnes Total height above sea level is similar to that of the London Tower Bridge app. 65 meters above sea level Jacket foundation with 8 piles hammered into the seabed 14 OSS Borkum Riffgrund 1 15 8
Foundations Foundations Number of monopile foundations 77 Material Steel Weight of monopile Up to 700 tonnes Length of monopile Up to 60 meters Diameter 6 meters Length of transition piece App. 25 meters Weight of transition piece App. 330 tonnes Status: All monopiles and transition pieces have been installed in due time The German authorities have set strict and challenging limits for noise production during installation. The successful use of an innovative noise mitigation system resulted in achieving the required limits and therefore an early full release for installation from the authorities 16 Foundations Suction Bucket Jacket Structure Foundations Suction bucket jacket structure Number of foundations 1 Material Steel Weight including transition piece App. 850 tonnes Length 58 meters Design Jacket structure with large suction buckets Invention Well known from the oil industry Status: The Suction Bucket Jacket foundation is a new initiative on the project. It is a jacket structure on top of large buckets which are sunk into the sea-bed using "underpressure", thereby making ramming obsolete and reducing noise during installation Construction site was at Bladt industries in Aalborg Special measuring devices will be positioned on the structure to provide detailed analysis of the foundation during operation 17 9
Suction Bucket Jacket Foundation Installation Process The Suction Bucket Jacket is expected to contribute to the strategy of lowering cost of energy: The installation process without ramming and noise mitigation will reduce the installation costs Reduction of the underwater noise level during construction is high on the political agenda, particular in Germany Installation process for a Suction Bucket Jacket Foundation 1) The jacket with integrated suction buckets is lowered to the seabed 2) An under pressure is applied to the buckets by means of individual pumps 3) The hydrostatic pressure difference and the deadweight causes the buckets to penetrate the soil Suction-Bucket-Jacket 19 10
Noise Mitigation during the construction phase of Borkum Riffgrund 1 20 Array Cables Array Cables Number of array cables 78 Material Polycarbonate Insulation with aluminium/copper core Length needed for project 80 Km 21 11
Wind Turbines Wind turbine generators Number of turbines 78 Version Siemens SWT-3,6MW with boost allowing for 4MW output Rotor diameter 120 meters Total height App. 145 meters Total weight (including foundation) App. 1,300 tonnes 22 Borkum Riffgrund 1 23 12
Public Thank you for your attention 13