Orsted, one of the world’s leading renewable energy companies, will shut down its last coal-fired combined heat and power plant, Esbjerg Power Station.
This will be marking a significant milestone in Orsted’s transition to fossil-free energy generation.
Esbjerg Power Station, located in Western Denmark, has been a crucial part of the Danish energy system for many years, supplying electricity and district heating to the municipality of Esbjerg.
With the shutdown of Esbjerg Power Station, Orsted will have eliminated coal from its energy generation portfolio, achieving a nearly fossil-free energy production. The plant’s annual coal consumption of approximately 500,000 tonnes, which equates to about 1.2 million tonnes of carbon dioxide emissions, will cease entirely.
Orsted has already reduced its scope 1-2 emissions intensity by 92 percent from 2006 to 2023. The closure of Esbjerg Power Station represents the final major step in the company’s efforts to meet its industry-leading target of a 99 percent green share of energy generation by 2025.
Orsted was the first energy company to set a science-based net-zero target, and with the shutdown of its last coal-fired power plant, it has taken all necessary actions to meet its goal of reducing scope 1-2 emissions intensity by 98 percent by 2025.
“Shutting down the last of our coal-fired heat and power plants marks the end of a chapter in our green transformation. We’re well on track to becoming the first major energy company to transform its energy production from fossil fuels to renewable energy,” Ole Thomsen, Senior Vice President and Head of Orsted’s Bioenergy business, said.
As Orsted moves away from coal, power production will be supported by other power plants, wind, and solar farms. Meanwhile, the local heating supply company in Esbjerg is establishing alternative production capacity to continue providing district heating to the municipality.
In addition to Esbjerg Power Station, Orsted will also shut down the coal-fired unit 4 at Studstrup Power Station and unit 21 at Kyndby Power Station on August 31, 2024. These closures follow a decision by the Danish authorities in October 2022 to extend the operation of these units to ensure the security of electricity supply.
Orsted plans to completely phase out coal as a reserve fuel at Studstrup Power Station by the end of 2024, once a large wood pellet silo, currently under reconstruction, is ready.