DONG Energy has announced plans to use the cashflow from its oil and gas business to fund investment in renewable energy.

It confirmed its intention to invest in clean energy, with a focus on offshore wind, bioenergy and green distribution and customer solutions following the completion of a strategic review of its exploration and production (E&P) business.

Its E&P business consists of a portfolio of oil and gas assets in Denmark, Norway and the UK.

The company stated: “DONG Energy has decided to keep E&P as part of the planned IPO. Going forward, the cashflows from E&P will be part of funding DONG Energy’s investments in renewable energy.”

It added it will make a write-down of around DKK 16 billion (£1.6bn) in the value of its E&P business in its 2015 annual accounts.

“The write-down is caused by the continued decline in oil and gas prices, reduced reserve estimates as well as project-specific factors, in particular with regard to the Hejre project which continues to face significant challenges,” it stated.

Last month, DONG Energy said it will invest £6 billion in offshore wind farms in the Humber region by 2019.