Ørsted Bioenergy & Thermal PowerValmet Customer Days 2018

Thomas DalsgaardExecutive Vice President

Ørsted Bioenergy & Thermal Power

2018

Ørsted develops energy systems that are green, independent and economically viable

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– Revenue (2017): € 8bn1

– EBITDA (2017): € 3bn1

– ~5,600 employees

– Active in Scandinavia, United Kingdom, Germany, The Netherlands, USA and Taiwan

Major Shareholder:– Danish State 50.1%

Wind Power Customer Solutions2 Bioenergy & Thermal Power

– Global leader in offshore wind with 5.1 GW installed and another 3.8 GW project pipeline

– Ambition of 11-12 GW installed offshore wind capacity by 2025

– Developing green, innovative and cost-efficient solutions for B2B customers

– Manage and optimise Ørsted´s energy portfolio

– #1 in Danish heat and power generation

– Converting heat and power plants from coal and gas to biomass

1. Revenue and EBITDA reported in DKK. Revenue: DKK 59.5 bn; EBITDA: DKK 22.5 bn2. Divestment of Ørsted’s Danish power distribution and residential customer business and the City Light business is expected to take place in 2019

Our geographicfootprint

3 February 2018

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1. Divestment of share of Enecogen announced in June 2018.

Ørsted Bioenergy & Thermal Power is the largest player in the Danish heat and power market

Assets and geographical position

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Herning Studstrup

SkærbækEsbjerg

Asnæs

Kyndby

Avedøre 1

H.C. Ørsted

Svanemøllen

Avedøre 2

Copenhagen

25%

32%

75%

68%

Heat

Power

Ørsted

Other

Share of DK production(heat 2016, power 2017)

CHP plant

Peak-load power plant

Heat plant

Biogas plant

Kalundborg

The full bio-conversion of our power stations is progressing as planned…

CHP conversion data (MWe/MWth)1, 2

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1. Biomass capacity after conversions. MWe refers to power production capacity after conversion. MWth refers to heat production capacity after conversion

2. Max. capacities that can not necessarily be reached simultaneously

3. Installation of flue gas condensation

E. Expected

Herning (75E/200E) Avedøre 2 (401/535) Studstrup 3 (362/513) Avedøre 1 (258/370)

COD 2009 / 2019E3

Primary fuel types

GasWood chips /wood pellets

COD 2002 / 2014

Primary fuel types

Naturalgas / Straw

Wood pellets / Straw

COD 2016

Primary fuel types

Coal Wood pellets

COD 2016

Primary fuel types

Coal Wood pellets

Skærbæk 3 (95/320) Asnæs 6 (25E/125E) Esbjerg 4 (56E/214E)

COD 2017

Primary fuel types

Naturalgas

Wood chips

COD 2019E

Primary fuel types

Coal Wood chips

COD 2022E

Primary fuel types

Coal Wood chips

Total:

1,272 MWe2,277 MWth

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… and we’re saying goodbye to coal in 2023

Coal (million tons) CO2-emissions (g / kWh)

2006 2017 2023

6.2

1.1

0

452

151

100

20

-96%

2007 2017 20232020

Biomass needs to demonstrate continued cost out and sustainability to maintain relevance

Time limited

Wind, solar, etc.

EU scepticism

Subsidies

NGOs

Political agendas

Other RES

Electrification

Opinion leaders

Anti-thermal

Supply side response

Transparency & trading

Supply chain optimization

Sustainable biomass

Pressure on biomass demand

Biomass demand

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Demonstrating sustainability is key for continued support SBP is gaining traction as a market leading certification system

Traceability of origin

Ensure replanting and accounting of GHG emissions

One compliance standard across markets

CO2

SBP

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In addition to bio-conversions, we have initiated the Smart Plant Programme – how to run the digitalized power plant of the future: smart, green and safe

Ørsted’s Smart Plant Programme covers five key areas

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Fuel & logistics

Big Data & analytics

Plant performance

New technology

Organization & employees

Reduce cost of fuel ownership across the full supply chain from ‘cargo to silo’

Make the most of our talent and build a flexible organisation where skills & expertise bring biggest impact

Be on top of technological advancement and bring in intelligent new tech solutions to daily routines

Better use of data to support timely business decisions across the organization from trading to production floor

Improve productivity from office to plant by automating and digitalising processes

With smart technologies and responsible biomass sourcing, bio-converted CHPs can back security of supply for years to come – both in power and heat

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Deliver three distinct green products: Dispatchable green power, grid stabilization and green district heating

Complementing wind and PV in the green power system

Currently the only green alternative for large scale district heating

Optimal usage of existing infrastructure

Can function as “testing ground” for new technologies (e.g. long-term storage, power-to-gas, etc.)

Our vision Let’s create a world that runs entirely on green energy