Ørsted shuts down its last coal-fired heat and power plant

Denmark-based renewable energy company Ørsted has shut down its last coal-fired power plant — marking a significant milestone in the massive energy producer’s green transition as its total power generation becomes essentially fossil fuel-free.

Ørsted announced Esbjerg Power Station, its last coal-fired combined heat and power plant in west Denmark, shut down as of Aug. 31.

The yearly consumption of coal at the plant has been about 500,000 tonnes, equivalent to about 1.2 million tonnes of carbon dioxide emissions or the yearly emissions of 600,000 fossil-fuelled cars in the European Union. Shutting it down is the last major step on Ørsted’s journey towards meeting its target of a 99 % green share of energy generation by 2025.

“Shutting down the last of our coal-fired heat and power plants marks the end of a chapter in our green transformation,” said Ole Thomsen, head of Ørsted’s bioenergy business, in a press release.

“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.”

Esbjerg Power Station’s 50 employees will either move to another position at Ørsted, retire, or be let go.

The release said going forward, power production will be covered by other power plants, and wind and solar farms. Esbjerg’s local heating supply company will establish an alternative production capacity for delivering district heating to the municipality.

Ørsted, now a global leader in renewable energy and large consumer of Canadian wood pellets, used to be one of the most coal-intensive energy companies in Europe.

Since 2006, however, it’s reduced its coal consumption significantly through a reduction in the number of its heat and power plants alongside conversions to certified sustainable biomass, instead of coal.

Between 2006 and 2023, Ørsted reduced its direct and indirect emissions intensity by 92%. With the shut down of Esbjerg Power Station, the number climbs to 98%.

Studstrup Power Station and Kyndby Power Station

In order to ensure the security of the electricity supply in Denmark, Danish authorities ordered Ørsted to continue and resume operations of three of its power stations, which use oil and coal, in October 22. They included Esbjerg Power Station and Studstrup Power Station, which both use coal as their primary source of fuel, and Kyndby Peak Load Plant, which used oil as fuel.

“The Danish authorities ordered us to continue operations at Esbjerg Power Station until Aug. 31 to ensure the security of the electricity supply,” said Thomsen.

“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.”

The passing of Aug. 31 marked the shut down of Studstrup and Kyndby stations as well.

Ørsted still has coal as a reserve fuel at Studstrup Power Station while a large wood pellet silo is being rebuilt after a fire. Ørsted said it expects to get the silo ready again before the end of 2024, and then it will no longer either have or use coal as a reserve fuel.

About Ørsted

Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognized on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative. Headquartered in Denmark, Ørsted employs approx. 8,400 people.

Ørsted‘s shares are listed on Nasdaq Copenhagen (Orsted). In 2023, the group’s revenue was DKK 79.3 billion (EUR 10.6 billion).