Key Takeaways

• Ørsted has completed its transition from coal to renewable energy, advancing its goal of achieving 99% green energy by 2025.

• The Esbjerg Power Station will no longer burn 500,000 tonnes of coal annually, which equates to a reduction of 1.2 million tonnes of CO2 emissions.

• Energy production will now be shifted to other power plants and renewable sources like wind and solar farms. Local authorities in Esbjerg will implement alternative heating solutions.

On August 31, 2024, Ørsted shut down its last coal-fired combined heat and power plant, Esbjerg Power Station in Western Denmark, marking the final step in its shift to renewable energy.

Ørsted, once one of Europe’s most coal-dependent energy companies, began its transformation in 2006 by significantly cutting coal usage. They achieved this by closing coal plants and converting others to use certified sustainable biomass. Today, Ørsted is a global leader in renewable energy and offshore wind.

Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy, stated: “The shutdown of our last coal-fired heat and power plant marks the end of a significant chapter in our green transformation. For many years, Esbjerg Power Station played a crucial role in the Danish energy system, providing electricity, stabilizing the power grid, and supplying district heating to Esbjerg. The Danish authorities required us to keep Esbjerg Power Station operational until August 31 to ensure electricity security.

“While we complied with this requirement, we firmly believe that society must rapidly phase out the use of gas, oil, and coal. With the closure of this plant, we are on track to becoming the first major energy company to fully transition from fossil fuels to renewable energy.”

Esbjerg Power Station previously burned about 500,000 tonnes of coal annually, equivalent to 1.2 million tonnes of CO2 emissions, or the yearly emissions from 600,000 fossil-fuelled cars in the EU. The plant’s closure represents a significant step towards Ørsted’s goal of achieving 99% green energy by 2025. Since 2006, Ørsted has reduced its Scope 1-2 emissions intensity by 92% and was the first energy company to set a science-based net-zero target.

Going forward, energy will be produced at other plants and renewable sources like wind and solar farms. Esbjerg’s local heating supply company is developing new capacity to replace the heat from the closed plant. Ørsted’s 50 employees in Esbjerg will either transition to other roles, retire, or be let go.

Additionally, Ørsted will close coal-fired unit 4 at Studstrup Power Station and unit 21 at Kyndby Peak Load Plant on the same day. The Danish authorities had mandated that Ørsted maintain certain coal and oil units, including Esbjerg unit 3, Studstrup unit 4, and Kyndby unit 21, to ensure electricity security. Unit 3 at Studstrup Power Station will still use coal as a backup fuel, but Ørsted aims to be completely coal-free by the end of 2024 as it rebuilds a wood pellet silo damaged by fire.