Ørsted Shuts Down Last Coal Plant for Renewables
Orsted A/S
Key Takeaways
Ørsted has finished the switch from coal to renewable energy, a big step towards 99% green energy by 2025.
Esbjerg Power Station will no longer burn 5,00,000 tonnes of coal a year, that is 1.2 million tonnes of CO2.
Energy production will shift to other power plants and renewable sources, such as wind and solar farms. Local authorities in Esbjerg will establish alternative heating solutions.
On August 31 2024, Ørsted closed its last coal-fired combined heat and power plant, Esbjerg Power Station in Western Denmark. This is the final step in Ørsted’s transition to renewable energy.
Ørsted was one of the most coal-dependent energy companies in Europe, they started their transformation in 2006 by reducing coal consumption by a lot. They did this by closing coal plants and converting others to use certified sustainable biomass. Today, they are a global leader in renewable energy and offshore wind.
Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy commented: “Shutting down the last of our coal-fired heat and power plants marks the end of a chapter in our green transformation. 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.”
Esbjerg Power Station used to burn around 5,00,000 tonnes of coal a year, which is 1.2 million tonnes of CO2 equivalent to the yearly emissions from 6,00,000 fossil-fuelled cars in the EU. Closing the plant is a big step towards Ørsted’s 99% green energy by 2025. Ørsted has already reduced its scope 1-2 emissions intensity by 92% from 2006 to 2023 and was the first energy company to set a science-based net-zero target.
In the future, energy will be produced elsewhere, at other power plants, and at renewable sources like wind and solar farms. Esbjerg’s local heating supply company is developing a new capacity to replace the heat from the now-closed power plant. Ørsted’s 50 employees in Esbjerg will either move to other roles, retire or be let go.
Also, Ørsted will close coal-fired unit 4 at Studstrup Power Station and unit 21 at Kyndby Peak Load Plant on the same day. The Danish authorities had required Ørsted to keep certain coal and oil units running, including Esbjerg unit 3, Studstrup unit 4 and Kyndby unit 21, to ensure electricity security. Unit 3 at Studstrup Power Station still uses coal as a backup fuel, but Ørsted will be fully coal-free by the end of 2024 as it rebuilds a wood pellet silo that was damaged by fire.
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Source: Ørsted
