Ørsted has announced that it will shut its final coal-fired heat and power plant in Esbjerg, Denmark, on 31 August 2024.
The closure would make its energy generation almost fossil fuel-free.
The transition away from coal is a significant milestone for Ørsted, which was once among Europe's most coal-intensive energy companies.
The shutdown of the Esbjerg facility is part of a broader strategy of developing alternative power plants, and wind and solar farms.
The local heating supply company in Esbjerg is developing alternative production capacity to continue providing district heating to the municipality.
Since 2006, Ørsted has significantly reduced its coal consumption by decreasing the number of heat and power plants and transitioning to certified sustainable biomass.
The Danish authorities mandated in October 2022 that Ørsted maintain operations at three power station units: the coal-powered unit 3 at Esbjerg power station, Unit 4 at Studstrup power station - both of which primarily use coal - and Unit 21 at Kyndby Peak Load Plant, which also uses oil. The latter two units had already been decommissioned and preserved.
Closure of the Esbjerg plant, along with Unit 4 at Studstrup and Unit 21 at Kyndby, marks the end of Ørsted's reliance on coal.
The annual coal consumption at Esbjerg has been around 500,000t, leading to 1.2 million tonnes of carbon dioxide emissions.
Its closure is a critical step in Ørsted's goal of a 99% green share of energy generation by 2025.
It has already achieved a 92% reduction in scope 1 and 2 emissions intensity from 2006 to 2023.
The company is working to rebuild a large wood pellet silo at Studstrup's Unit 3, expected to be operational before the end of 2024, eliminating the need for coal as a reserve fuel.
The transition will affect the 50 employees at Esbjerg.
Ørsted Bioenergy business senior vice-president and head Ole Thomsen stated: “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 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 closedown 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.”
In August 2024, Ørsted teamed up with Mission Clean Energy to build four 1GW battery storage systems in the US Midwest.
