Danish energy company DONG Energy has announced its plan to change its name to Ørsted to reflect the company’s focus on renewable energy moving forward as it abandons fossil fuels altogether.
The rebranding follows DONG’s divestment of its upstream oil and gas business earlier this year.
DONG Energy said on Monday it has called for an Extraordinary General Meeting to ask the shareholders of the company to approve a change of the company name to Ørsted.
“DONG was originally short for Danish Oil and Natural Gas,” said Thomas Thune Andersen, Chairman of the Board of Directors. “With our profound strategic transformation and the divestment of our upstream oil and gas business, this is no longer who we are. Therefore, now is the right time to change our name.
“Our vision is a world that runs entirely on green energy. Climate change is one of the most serious challenges facing the world today, and to avoid causing serious harm to the global ecosystems, we need to fundamentally change the way we power the world by switching from black to green energy,” Andersen added.
DONG Energy announced in May it had entered into an agreement to sell its upstream oil and gas business to INEOS for just over $1 billion.
“The company has increased earnings considerably, while reducing the use of coal in its power stations and building out new offshore wind farms. Since 2006, carbon emissions have been reduced by 52%, and by 2023, they will have been reduced by 96% compared to 2006,” the company said in a statement announcing the name change.
Over the past decade, DONG Energy has transformed itself from an energy company based on coal and oil to a global leader in renewable energy, particularly in the offshore wind sector. The sale its oil and gas business followed a decision in 2016 to transform itself into a leading, pure-play renewable energy company. DONG has also committed to stopping all use of coal.
The move comes as the costs to develop offshore wind farms has fallen significantly in recent years, particularly in places like the North Sea.
“Today, we’re 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’ll also explore new green growth opportunities to strengthening our existing platform, if they support our vision, provide a strong competitive position and create value for our shareholders,” said Henrik Poulsen, CEO of DONG Energy.
DONG Energy has called for and Extraordinary General Meeting to be held on 30 October 2017 to formally decide the name change.
The name Ørsted is named after innovative Danish scientist Hans Christian Ørsted, who spearheaded several scientific discoveries, including the discovery of electromagnetism in 1820, which helped lay the scientific foundation for how today’s societies are powered.
As part of the rebranding to Ørsted, a new logo and brand identity will be introduced.