Orsted investors fear it's flying close to the sun - Reuters

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Wind turbines are seen in South Wales, Britain, March 26, 2021. REUTERS/Matthew Childs

As the fate of Icarus reveals, overexposure to renewable energy can have its downsides. Shares in Orsted (ORSTED.CO) fell 6% on Wednesday read more after the Danish wind power specialist unveiled plans to spend $57 billion over the next 10 years. Chief Executive Mads Nipper reckons that besides helping prevent the planet from overheating, it will transform Orsted into the world’s biggest green power company.

Admittedly, Orsted already has a $61 billion market valuation and recognised global leadership in offshore wind, the backbone of its current 7.6 gigawatts of installed renewables capacity. Yet the 2030 target of 50 gigawatts – 50% more than rough UK peak power demand – involves less-familiar technology like solar power and hydrogen production. And the competition is hotting up as oil majors like BP (BP.L), Total (TOTF.PA) and Shell (RDSa.L), and even Exxon Mobil (XOM.N) and Chevron (CVX.N), come under pressure to decarbonise. With Orsted trading on over 40 times expected earnings, it’s hard to stop investors focusing on potential negatives. (By Ed Cropley)

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Orsted investors fear it's flying close to the sun - Reuters
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