Offshore wind champion Orsted kicks fossil fuel habit for good with closure of last plant
Danish company has led rivals such as RWE in transitioning from fossil fuels to entirely renewable energy
Orsted is set to complete its transition from being one of the most coal-intensive energy companies in Europe to becoming a fossil-free global renewables giant with the closure of its last coal-fired power plant.
The Esbjerg Power Station, which supplies electricity to the Danish grid and municipal heat in this Western region of Denmark, will cease operations on Sunday.
When it was still called DONG Energy, Orsted began reducing its coal consumption by scaling down its heat and power plant assets as well as converting some of the coal-fired facilities to certified sustainable biomass.
In 2009, the company's management announced a new strategy, aiming to generate 85% of heat and power from renewable sources by 2040, but hit this target 21 years ahead of schedule, becoming the world's leading offshore wind developer along the way.
“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, senior vice president and head of Orsted’s Bioenergy business in a statement today (Thursday)."
Given the prominent role that the Esbjerg power station has played in providing a stable supply of electricity to the national energy system, Danish authorities ordered Orsted to continue operations there until 31 August.
"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 (closure) 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,” Thomsen stated.
Orsted described closure of Esbjerg Power Station as "the last major step" towards meeting its own target of 99% green energy generation by 2025.
Orsted stated it reduced its scope 1-2 emissions intensity by 92 % from 2006 to 2023.
"The shut-down of the last coal-fired heat and power plant marks a key milestone for the company as it has now taken all actions necessary to meet its industry-leading science-based targets to reduce its scope 1-2 emissions intensity by 98 % by 2025," the company said in its statement.
In October 2022, Danish authorities also ordered Orsted to resume operations at the mothballed Studstrup and Kyndby power stations, using coal and oil respectively, due to concerns about the security of the electricity supply in Denmark. These two units will also close down again on 31 August.
Orsted on top of that is replacing its last remaining facilities that cater for the use of coal as a possible reserve fuel at Studstrup power station.
The company has stated that it aims to achieve net-zero emissions across its whole value chain, including scope 3 emissions, by 2040.
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