Denmark-headed energy utility Ørsted A/S has announced that it is shutting down its last coal-fired combined heat and power (CHP) plant, Esbjerg Power Station, located in the Western part of Denmark today on August 31, 2024. The move means that company will have shut down its last coal-fired heat and power plant, and Ørsted’s entire energy generation will be essentially fossil-free.
Today, Ørsted is one of the world’s largest renewable energy companies and a global leader in offshore wind power.
Ørsted (then DONG Energy) started as one of the most coal-intensive energy companies in Europe, however since 2006, the company has reduced its coal consumption significantly through a reduction in the number of heat and power plants as well as conversions from coal to certified sustainable biomass.
With this, the company will have shut down its last coal-fired heat and power plant, and Ørsted’s entire energy generation will be essentially fossil-free.
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, said Ole Thomsen, SVP and Head of Ørsted’s Bioenergy business.
Fulfill emissions reduction target
The annual coal consumption at Esbjerg Power Station has been approximately 500,000 tonnes, equivalent to approximately 1.2 million tonnes of fossil carbon dioxide (CO2) emissions.
Shutting down Esbjerg Power Station is the last major step for Ørsted towards meeting its target of a 99 percent green share of energy generation by 2025.
Ørsted has already reduced its Scope 1-2 emissions intensity by 92 percent from 2006 to 2023 and was the first energy company to get a science-based net-zero target.
The shutdown of the last coal-fired CHP plant marks a key milestone for the company as it has now taken all actions necessary to meet its industry-leading Science-Based Targets initiative (SBTi) to reduce its Scope 1-2 emissions intensity by 98 percent by 2025.
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 50 employees working at Esbjerg Power Station will either move to another position at Ørsted, retire or be let go.
Studstrup Power Station and Kyndby Power Station
To ensure the security of the electricity supply in Denmark, the Danish authorities ordered Ørsted in October 2022 to continue and resume operations of three of its power station units, which use oil and coal as fuel.
This order applied to Unit 3 at Esbjerg Power Station and Unit 4 at Studstrup Power Station, which both use coal as their primary fuel source and Unit 21 at Kyndby Peak Load Plant, which uses oil as fuel.
The two latter units had already been decommissioned and preserved.
On August 31, Ørsted will shut down the coal-fired Unit 4 at Studstrup Power Station and Kyndby Power Station’s Unit 21.
Ørsted 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.
Ørsted expects to get the silo ready again before the end of 2024, and then Ørsted will no longer either have or use coal as a reserve fuel.
The Danish authorities ordered us to continue operations at Esbjerg Power Station until August 31 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, ended Ole Thomsen.
