Ørsted Closes its Final Coal-Fired Heat and Power Plant

On 31 August 2024, Ørsted will close its last coal-fired combined heat and power plant, Esbjerg Power Station, located in Western Denmark. Ørsted, is a global leader in renewable energy and offshore wind power, was once among Europe's most coal-intensive energy companies. Since 2006, the company has drastically reduced its coal consumption by cutting down the number of heat and power plants and converting others to certified sustainable biomass.

Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy business, stated, "The shutdown of our last coal-fired plant signifies the conclusion of a significant chapter in our green transition. Esbjerg Power Station has played a crucial role in the Danish energy system, providing electricity, grid stability, and district heating to Esbjerg. The Danish authorities mandated that we continue operations at Esbjerg Power Station until 31 August to ensure electricity supply security, which we complied with. However, we believe that society must phase out gas, oil, and coal as quickly as possible. With this closure, we are on track to becoming the first major energy company to fully transition from fossil fuels to renewable energy."

With the closure of this plant, Ørsted's energy generation will be nearly fossil-free. Esbjerg Power Station's yearly coal consumption was about 500,000 tonnes, producing around 1.2 million tonnes of carbon dioxide emissions—equivalent to the annual emissions of approximately 600,000 fossil-fuel-powered cars in the EU. This shutdown marks the last major step in Ørsted’s journey toward achieving a 99% green energy generation target 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 adopt a science-based net-zero target. The closure of this last coal-fired plant is a crucial milestone as Ørsted moves closer to its goal of a 98% reduction in scope 1-2 emissions intensity by 2025. Going forward, power production will be managed by other plants, wind, and solar farms, while Esbjerg’s local heating supply company is setting up alternative production capacity for district heating. The 50 employees at Esbjerg Power Station will either be reassigned within Ørsted, retire, or be let go.

To maintain electricity supply security in Denmark, the Danish authorities ordered Ørsted in October 2022 to continue and resume operations at three of its units using oil and coal. This included unit 3 at Esbjerg Power Station and unit 4 at Studstrup Power Station, both coal-fired, and unit 21 at Kyndby Peak Load Plant, which uses oil. The latter two units had already been decommissioned. On 31 August, Ørsted will also shut down the coal-fired unit 4 at Studstrup Power Station and unit 21 at Kyndby Power Station.

Ørsted is maintaining coal as a reserve fuel for Unit 3 at Studstrup Power Station while a major wood pellet silo is being rebuilt following a fire. The company expects to complete the silo by the end of 2024, after which it will no longer have or use coal as a reserve fuel.