ride on a wave of determination to kick fossil fuels , Denmark ’s largest company is selling off its oil sector , a move that will aid the Danes fund their transition to green energy use .
Denmark is “ sell off its last oil company,”Bloombergreported . But like most matters regarding line of work and the economy , thing are n’t as simple as they seem .
The milestone came when Danish giant AP Moller – Maersk , best known for cargo ships and transportation system , signed an agreementselling its entire oil segmentation to French ship’s company Total SA for a chunky $ 7.45 billion . The deal is not set to make out until next year , as it requires regulatory approval , but the Danes have applauded the decision so far .
“ The more money they make on the North Sea , the more money there will be for us to spend on the green conversion , ’’ Energy Minister Lars Christian Lilleholt sound out in aninterview with Bloomberg .
Whilst the tidy sum look ideal on theme , it will not stop Danish North Sea oil from being pumped . The Danish government will proceed to earn money indirectly from fossil oil through tax revenues , although these profits will assist Denmark meet its target area tokick the use of fossil fuelsby 2050 . Meanwhile , individual companies will also continue to be rewarded with the yield of Danish rock oil .
“ By trade to Total , we ensure a continued Danish stronghold in the North Sea based on Maersk Oil ’s chair positioning within applied science development and its caterpillar tread record as a skimpy , efficient and trust partner , " explained by Claus V. Hemmingsen , Vice CEO of AP Moller – Maersk , in astatement . “Importantly , Maersk Oil will continue tightlipped to its technology and innovation partners at the Danish technical institutions and in the oil colour and gas service manufacture to the benefit of all parties . ”
Despite the catch-22 of using oil profits to conversion to renewable energy , Denmark seems to be at the world ’s forefront in terms of unripe energy habit . The Danish government has set the ambitious aim of wholly weaning the rural area off vegetable oil , coal , and gasolene by 2050 . It also wants to cut fossil fuel dependence by 33 percent over the next 10 years alone .
Earlier this summer , another Danish energy giant , DONG Energy , betray North Sea oil and gas output to a German society for $ 1.3 billion . DONG Energy is replacing all of its coal power plant with sustainable biomass fuel and is the public ’s large offshore wind farm developer .
