Wilhelmsen to spend US$500m on new renewable businesses
NORWAY's major shipping brand Wilhelmsen is having a major change of focus, going all out for renewables, reports Singapore's Splash 247
31 March 2021 - 19:00
Thomas Wilhelmsen, group CEO at Wilhelmsen, said in a statement: 'Our strategy is clear, we will contribute to the energy infrastructure transition and be an active player in decarbonisation. In addition to accelerating the transition of our existing businesses, we will invest in new businesses with the long-term aim of shifting from mainly oil and gas related activities to mainly activities related to the renewable sector.
'We foresee up to US$500 million in new business investments related to the renewable segments over the next five years and expect to invest on our own, together with partners, and/or utilise the capital market.'
The new segment, which has been named New Energy, will be headed up by Jan Eyvin Wang, currently senior vice president for strategic investments.
The establishment on the New Energy segment is a continuation of several years of exploring renewable opportunities for the Scandinavian company. This includes the ongoing transformation of NorSea, the establishment of offshore wind activities through NorSea Wind, Edda Wind, and Elevon, autonomous shipping through Massterly, decarbonisation solutions through RaaLabs, Ivaldi, the partnership with thyssenkrupp, and the vessel concept Topeka, a hydrogen-powered ship design.
On why a segment-specific structure is necessary now, Wilhelmsen said: 'In the next few decades, we will see a tremendous shift from oil and gas to renewable energy. The speed of change and investments needed requires a dedicated focus to capitalise on the opportunities which will arise. We will obviously build on our existing competencies, in-depth knowledge of the maritime industry, and what differentiates us from many players in the market, while exploring new opportunities and new partnerships.'
Under the group reorganisation, Wilhemsen's maritime services segment, to be headed by Bjorge Grimholt, currently president of Wilhelmsen Ships Service, is expected to explore organic and horizontal growth of marine products, ship agency, and ship management over the next three to five years.
The final segment - strategic and financial investments - includes shareholdings in Wallenius Wilhelmsen, Treasure ASA/Hyundai Glovis, Qube and the group's liquidity portfolio.
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