On 31 August, Ørsted shut down its last coal-fired combined heat and power plant, Esbjerg Power Station, located in the Western part of Denmark.
In the past Ørsted has one of the most coal-intensive energy companies in Europe, but starting in 2006 the company has been reducing 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.
Now, with this shutdown, Ørsted’s entire energy generation will be essentially fossil-free.
Ole Thomsen, senior VP and head of Ørsted’s Bioenergy business, commented: “Shutting down the last of our coal-fired heat and power plants marks the end of a chapter in our green transformation. 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 … we are [now] 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 has been approximately 500 000 tonnes. Shutting down Esbjerg is the last major step in Ørsted’s progression towards meeting its target of a 99% green share of energy generation by 2025.
The company had already reduced its emissions intensity by 92 % from 2006 to 2023, and was the first energy company with a science-based net-zero target. Going forward, the lost 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.
In order to ensure the security of the electricity supply in Denmark, the Danish authorities decided in October 2022 to order Ørsted to continue and resume operations at three of its power station units that were oil or coal fired. These were unit 3 at Esbjerg and unit 4 at Studstrup power station, which both use coal as their primary source of fuel, and unit 2 at Kyndby peak load plant, which uses oil as fuel. The two latter units had already been decommissioned.
Ørsted still has coal as a reserve fuel at Studstrup unit 3, while a large wood pellet silo is being rebuilt after a fire. The company expects to have the silo ready again before the end of 2024, and at that point Ørsted will no longer either have or use coal as a reserve fuel.
