Orsted closes its last coal-fired power plant as part of the green transformation

Orsted, one of the world's leading renewable energy companies, will close its last coal-fired power plant, Esbjerg Power Station.

This will represent an important milestone in Orsted’s transition to fossil-free energy production.

The Esbjerg Power Plant, located in western Denmark, has been an important part of the Danish energy system for many years and supplies the municipality of Esbjerg with electricity and district heating.

By closing the Esbjerg power plant, Orsted will eliminate coal from its power generation portfolio and achieve almost fossil-free energy production. The power plant's annual coal consumption of around 500,000 tonnes, which corresponds to around 1.2 million tonnes of carbon dioxide emissions, will be completely eliminated.

Orsted has already reduced its emission intensity in emission scopes 1–2 by 92 percent from 2006 to 2023. The closure of the Esbjerg power plant represents the latest major step in the company's efforts to achieve its industry-leading target of 99 percent green electricity generation by 2025.

Orsted was the first energy company to set a science-based net zero target and, by closing its last coal-fired power plant, has taken all necessary measures to achieve its goal of reducing Scope 1 and 2 emission intensity by 98 percent by 2025.

“The closure of the last of our coal-fired power plants marks the end of a chapter in our green transformation. We are on track to become the first major energy company to switch its energy production from fossil fuels to renewable energy,” said Ole Thomsen, Senior Vice President and Head of Orsted’s Bioenergy Business.

As Orsted moves away from coal, electricity production will be supported by other power plants as well as wind and solar parks. At the same time, the local heat company in Esbjerg is building up alternative production capacity to continue supplying the municipality with district heating.

In addition to the Esbjerg power plant, Orsted will also shut down coal-fired unit 4 at Studstrup power plant and unit 21 at Kyndby power plant on 31 August 2024. These closures follow a decision by the Danish authorities in October 2022 to extend the operation of these units to ensure security of electricity supply.

Orsted plans to completely phase out coal as a backup fuel at Studstrup Power Plant by the end of 2024, once a large wood pellet silo currently being converted is completed.