Orsted is closing its last coal-fired heat and power plant, in Esbjerg, Denmark, which means its entire energy generation will be almost fossil fuel-free.
Going forward, the power production will be covered by other power plants and wind and solar farms, and the local heating supply company in Esbjerg is establishing an alternative production capacity for delivering district heating to the municipality of Esbjerg.
The offshore wind farm developer and owner is one of the largest renewable energy companies in but had, in the past, been one of the most coal-intensive energy companies in Europe.
Since 2006, Orsted has cut its coal consumption significantly through a reduction in the number of heat and power plants as well as conversions to certified sustainable biomass instead of coal.
In order to ensure the security of the electricity supply in Denmark, the Danish authorities decided in October 2022 to order Orsted to continue and resume operations of three of its power station units, which use oil and coal as fuel.
This applied to unit 3 at Esbjerg Power Station and unit 4 at Studstrup Power Station, which both use coal as their primary source of fuel, and unit 21 at Kyndby Peak Load Plant, which uses oil as fuel. The two latter units had already been decommissioned and preserved.
On 31 August, Orsted will also be shutting down the coal-fired unit 4 at Studstrup Power Station as well as Kyndby Power Station’s unit 21.
Orsted still has coal as a reserve fuel at Studstrup Power Station’s unit 3, while a large wood pellet silo is being rebuilt after a fire.
It expects to get the silo ready again before the end of 2024, and then Orsted will no longer either have or use coal as a reserve fuel.
Ole Thomsen, Senior Vice President and Head of Orsted’s Bioenergy business, said: “For many years, Esbjerg Power Station has been a very important contributor to the Danish energy system, delivering electricity and stability to the power grid and district heating to the municipality of Esbjerg.
“The Danish authorities ordered us to continue operations at Esbjerg Power Station until 31 August to ensure the security of the electricity supply.
“Naturally, we complied with the order, but we believe that we, as a society, must phase out the use of gas, oil, and coal as soon as possible, and with the close down of the heat and power plant, we’re well on track to becoming the first major energy company to completely transform its energy production from fossil fuels to renewable energy.”
The yearly consumption of coal at Esbjerg Power Station has been approx. 500,000 tonnes, which is equivalent to 1.2 million tonnes of carbon dioxide emissions.
Shutting down Esbjerg Power Station is the last major step in Orsted’s journey towards meeting its target of a 99% green share of energy generation by 2025.
Orsted has already reduced its scope 1-2 emissions intensity by 92 % from 2006 to 2023.
The 50 employees working at Esbjerg Power Station will either move to another position at Orsted, retire, or be let go.