Ørsted, one of the world’s largest renewable energy companies and a global leader in offshore wind power, will shut down its last coal-fired combined heat and power plant, Esbjerg Power Station, located in western Denmark. This milestone is a significant step towards Ørsted’s goal of becoming a fully renewable energy company.

Once one of Europe’s most coal-intensive energy companies, Ørsted has been on a transformative journey since 2006, significantly reducing its coal consumption by transitioning to certified sustainable biomass and decommissioning coal-fired plants. The closure of Esbjerg Power Station, which has consumed approximately 500,000 tonnes of coal annually—equivalent to about 1.2 million tonnes of carbon dioxide emissions—marks the culmination of this effort, effectively making Ørsted’s energy generation fossil-free.

Shifting towards a fossil-free future

Ole Thomsen, Senior Vice President and Head of Ørsted’s Bioenergy business, commented on the achievement: “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… but we believe that we, as a society, must phase out the use of gas, oil, and coal as soon as possible.”

Thomsen added that the Danish authorities had mandated Ørsted to keep the Esbjerg plant operational until the end of August 2024 to ensure electricity supply security. However, the company is fully committed to its green transition goals, aiming to become the first major energy company to shift entirely from fossil fuels to renewable energy sources.

Achieving industry-leading targets

With the closure of Esbjerg Power Station, Ørsted is on track to achieve its ambitious target of generating 99% green energy by 2025. The company has already reduced its scope 1-2 emissions intensity by 92% from 2006 to 2023 and aims for a 98% reduction by 2025. Ørsted was also the first energy company to set a science-based net-zero target, demonstrating its leadership in climate action and sustainability.

Following the shutdown, Ørsted’s power production will be covered by other power plants, along with wind and solar farms. Additionally, the local heating supply company in Esbjerg is developing alternative production capacity for district heating in the area. The 50 employees at Esbjerg Power Station will either be relocated to other positions within Ørsted, retire, or face redundancy.

Closure of other units and remaining challenges

In a move to ensure electricity supply security, the Danish authorities had earlier ordered Ørsted to continue or resume operations at three power station units, including the coal-fired unit 4 at Studstrup Power Station and the oil-fueled unit 21 at Kyndby Peak Load Plant. Both of these units, which had been previously decommissioned, will also be shut down on 31 August 2024.

Ørsted still maintains coal as a reserve fuel at Studstrup Power Station’s unit 3 while a large wood pellet silo is being rebuilt after a fire. The company expects the silo to be operational by the end of 2024, at which point Ørsted will completely eliminate coal from its energy mix, even as a reserve fuel.

A new chapter in renewable energy

The shutdown of the last coal-fired heat and power plants is a critical milestone for Ørsted and a significant step for Denmark’s energy transition. As Ørsted continues its journey towards a sustainable future, it reinforces the growing trend in the energy sector to move away from fossil fuels and embrace renewable sources, paving the way for other companies to follow suit.

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