On 31 August 2024, Ørsted will decommission its final coal-fired combined heat and power plant, Esbjerg Power Station, situated in Western Denmark.
Previously one of Europe’s most coal-intensive energy providers, Ørsted has dramatically reduced its coal consumption since 2006. This reduction was achieved by downsizing the number of its heat and power plants and converting several facilities to utilise certified sustainable biomass instead of coal.
With the closure of Esbjerg Power Station, Ørsted will complete its transition to nearly fossil-free energy generation.
Ørsted’s Bioenergy business head and senior vice president Ole Thomsen said: “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.
“The Danish authorities ordered us to continue operations at Esbjerg Power Station 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 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 annual coal consumption at Esbjerg Power Station has been approximately 500,000 tonnes, resulting in about 1.2 million tonnes of carbon dioxide emissions—equivalent to the yearly emissions of roughly 600,000 fossil-fuelled cars in the EU. The closure of Esbjerg Power Station represents the final major step in Ørsted’s journey towards achieving its goal of generating 99% of its energy from green sources by 2025.
Ørsted has already reduced its scope 1 and 2 emissions intensity by 92% between 2006 and 2023, becoming the first energy company to set a science-based net-zero target.
The shutdown of its last coal-fired heat and power plant marks a significant milestone, as the company has now implemented all necessary actions to meet its industry-leading science-based targets, aiming to reduce its scope 1 and 2 emissions intensity by 98% by 2025.
In the future, power production will be managed by other power plants, as well as wind and solar farms. Additionally, the local heating supply company in Esbjerg is developing alternative production capacity to provide district heating to the municipality. The 50 employees at Esbjerg Power Station will either transition to other roles within Ørsted, retire, or face redundancy.
To maintain the security of Denmark’s electricity supply, the Danish authorities ordered Ørsted in October 2022 to continue and resume operations at three of its power station units, which run on oil and coal. This directive applied to unit 3 at Esbjerg Power Station and unit 4 at Studstrup Power Station, both of which primarily use coal, as well as unit 21 at Kyndby Peak Load Plant, which operates on oil. The latter two units had previously been decommissioned and placed in reserve.
On 31 August, Ørsted will also shut down the coal-fired unit 4 at Studstrup Power Station and unit 21 at Kyndby Power Station.
At Studstrup Power Station’s unit 3, coal remains available as a reserve fuel while a large wood pellet silo is being reconstructed following a fire. Ørsted anticipates completing the silo rebuild by the end of 2024, after which the company will no longer have or use coal as a reserve fuel.
