#20: Powering the Future: The Ørsted way with Maria Hoffmann

Hi, I'm Jeppe and welcome to my weekly newsletter on Corporate Venturing, released every Tuesday. My aim is to provide a comprehensive perspective on the latest developments in the field and its related topics, drawing from the insights of top management, venture capitalists, founders, LPs, and family offices. I aim to offer valuable information and thought-provoking content that will aid in understanding the importance of Corporate Venturing in business strategy.

In this edition of my newsletter, I had the pleasure of interviewing  Maria Emilie Danø Hoffmann , Managing Director, Ørsted Ventures & Open Innovation.

Maria Emilie Danø Hoffmann's journey began with a strong foundation in physics. Her insatiable curiosity led her to pursue a Master's degree and a PhD at CERN, the renowned European Organization for Nuclear Research. Immersed in the cutting-edge world of particle physics, Maria's experiences laid the groundwork for her analytical thinking and problem-solving skills. Despite her passion for fundamental research, Maria soon realized during her PhD studies that her true calling lay beyond the realm of academia.

In 2017, Maria made a significant leap into the corporate world by joining Boston Consulting Group (BCG) . Although her transition into consulting offered diverse challenges and opportunities, Maria sensed an absence of focus on climate and sustainability at that time. This realization propelled her towards a path that aligned more closely with her values and interests. Maria's heart beat for the urgent need to address climate change and drive the green transition. It was this deep-rooted passion that ultimately guided her towards Ørsted, a leading energy developer committed to renewable solutions.

Maria's heart beat for the urgent need to address climate change and drive the green transition

Maria has worked in various leadership roles related to innovation within Ørsted and most recently undertook the role of Managing Director of Ventures and Open Innovation. Here, she found a platform where she could merge her expertise, ambitions, and desire to create a positive impact.

Ørsted Ventures and Open Innovation

Ventures and Open Innovation (VOI) is Ørsted's externally facing innovation unit, responsible for conducting innovation in collaboration with entities from ecosystems such as start-ups and academia. This team is part of a wider Innovation department that also encompasses internal innovation project management, R&D, digital innovation, and portfolio management. When it comes to start-ups, Ørsted Ventures & Open Innovation focuses on strategic partnerships with ventures and direct equity investments in the early stages.

For Ventures and Open Innovation, creating a strong connection to Ørsted's main organization is paramount. The department has been established and grown organically over the years by focusing on cases that generate value for the core of the business while also driving the wider innovation agenda in Ørsted. For example, the team's activities directly support the renewable energy tenders that Ørsted frequently submits across markets. This means that a localized presence across Ørsted's footprint is crucial, which is why the team operates a series of Innovation Hubs in select countries with attractive ecosystems. Initiatives in their hubs in countries such as the UK and Ireland, the Netherlands, and the US are a testament to their commitment. At the headquarters in Copenhagen, they spearhead the efforts to anchor the hubs to the parent company, forming a network structure with Copenhagen at the center.

Local presence is paramount to the success of the team

As Maria continues to formalize her approach and secure its future, solidifying and scaling her ability to effectively harness the innovation potential in the ecosystems will become a top priority. For now, her focus is centered around the current structure and modus operandi, but there is a vision for enhanced scalability and broader impact on her journey to spearhead the renewable energy solutions of the future.

Propel - The Ørsted accelerator

In collaboration with the Rockstart, Maria and her team have successfully launched Propel, an accelerator program hosted by Ørsted. This initiative has received overwhelming interest, with a significant increase in high-quality applications, reaching 150. From these applications, a carefully selected cohort of eight promising ventures has been formed.

The cohort has shown an impressive quality of the start-ups

To solidify partnerships and further drive collaboration, Propel has already established Memorandums of Understanding (MOUs) with four of the selected start-ups.

While competing with other industry giants who possess substantial resources, Ørsted aims to differentiate itself as an active, strategic investor. This aspect was one of the key objectives behind the establishment of Propel - to actively support and form commercial agreements with innovative startups. By leveraging their expertise and providing support beyond financial resources, Ørsted strives to actively assist start-ups with tangible steps in their journeys.

Propel serves as a testament to Ørsted's commitment to driving sustainable innovation and its dedication to nurturing and propelling forward-thinking entrepreneurs in the renewable energy sector. With the combined efforts of Maria's team, Rockstart, and the selected cohort, Propel is poised to make a significant impact for Ørsted and contribute to the improvement of green technology and the energy transition.

Strategic Focus: Balancing Core Business and Moonshot Ambitions

Ørsted's innovation strategy strikes a carefully curated balance between generating value for the core business while simultaneously exploring future business opportunities in adjacent and transformative areas. The organization recognizes the importance of having internal customers and ensuring that any new initiatives align with and contribute to the existing business or prospective strategic focus areas.

We need to get the basics right before we can do moonshots

While moonshot projects hold allure and potential, Maria acknowledges that these ventures must be sustainable, and Ørsted's collective organization needs to be able to capture and engage with such opportunities before they can become a reality. Determining the appropriate allocation of resources and capital becomes crucial when considering how far these moonshot endeavors can venture from the core business.

By striking a delicate balance between maintaining and evolving their core business and exploring bold and innovative ideas, Ørsted aims to foster a culture of continuous improvement and transformation.

Maria's long-term vision includes reaching for moonshot projects, but she understands the importance of grounding these aspirations in a solid foundation of existing operations.

The chosen strategic approach allows them to remain agile, responsive to market dynamics, and at the forefront of the green energy transition. By leveraging their core strengths and gradually expanding into new frontiers, Ørsted aspires to drive sustainable change and make a lasting impact in the renewable energy landscape.

Final comment from the author

A heartfelt expression of gratitude to Maria for her valuable contribution to this newsletter and for providing insights into the innovative endeavors at Ørsted. I am grateful for her openness in sharing the remarkable achievements of the Propel program and her vision for the future of the Ventures and Open Innovation team at Ørsted.

I hope you enjoyed this week's newsletter. If you have any suggestions or contributions that you would like to share with me, please do not hesitate to reach out. I would be delighted to hear from you.

/Jeppe