Ørsted Bids Farewell to Coal, Embraces Clean Energy
Ørsted Bids Farewell to Coal, Embraces Clean Energy
On August 31, 2024, Ørsted, the global leader in renewable energy, marked an important milestone on the journey towards 99% green energy by 2025 with the official closure of the company's last coal-fired combined heat and power plant, Esbjerg Power Station, in Western Denmark. This makes the closure of Esbjerg Power Station the very last chapter in Ørsted's transformation from fossil fuels to renewable energy, which the company initiated as far back as 2006.
Esbjerg to No Longer Produce Coal-Fired Power
No further combustion of some 500,000 t of coal annually at the Esbjerg Power Station means a halt of about 1.2 million tonnes of CO2 emissions. This reduction in CO2 corresponds to the yearly emissions from 600,000 fossil-fuelled cars in the EU. The closure represents an important milestone on the company's ongoing effort to reduce its carbon footprint and transition to renewable sources of energy.
From Fossil Fuels to Renewable Energy
Ørsted was one of the most coal-dependent energy companies in Europe. Over the past two decades, the company has rapidly transformed: it has reduced its use of coal by nearly a third since 2006 by retiring coal-fired plants or converting others to certified sustainable biomass. Ørsted has invested billions in renewable projects-mostly in offshore wind-and today is one of the world leaders in the industry.
With the shutdown of Esbjerg Power Station, other power installations, both conventional and renewable, such as wind and solar farms, take over in the production of energy. Also, Esbjerg's local heating supply company is working to have alternative solutions to take over the heat from the power plant.
Effects on Employees
Where the plant closure will hit especially hard is the effect on 50 Ørsted employees stationed at the location who will be moved to other parts of the company or retire/lose their jobs.
The shutdown of the facility forms part of a wider move by Ørsted to get rid of fossil fuels such as coal, oil, and gas as part of its transition to renewal energy.
More Plant Closures
In addition to Esbjerg, Ørsted simultaneously closed two other coal units: Unit 4 at Studstrup Power Station and Unit 21 at Kyndby Peak Load Plant. All these decisions are in contrast to the previous calls by the Danish government for Ørsted to keep most of its coal and oil units in operation on security of supply grounds. Whereas coal still is used as a reserve fuel at Unit 3 in Studstrup Power Station, Ørsted will be fully coal-free in the end of 2024, following rebuilding of a wood pellet silo which was destroyed by fire.
Green Transformation of Ørsted
This obviously reflects its feats over the years with regard to renewable energy. In fact, it has already reduced 92% of its scope 1-2 emissions intensity between 2006 and 2023. Furthermore, Ørsted was the first energy company that had set a target for a science-based net-zero, thus acting as an example in leading the globe towards sustainable energy.
For every step Ørsted reaches out to its target of 99% green energy, it is setting standards for the transition of the energy industry away from fossil fuels. Closure of the Esbjerg Power Station is a big moment not only for Ørsted but also for Denmark, as the latter too journeys on its quest to meet the climate goals.
Conclusion
As coal-fired energy production came to an end at the Esbjerg Power Station, Ørsted completed its transformation from being one of Europe's most coal-intensive energy firms to global leader in renewable energy. The reason being, this divestment is important for Ørsted's goal of making 99% green energy before the end of 2025 and completely eradicating the use of coal before the end of 2024. With continued investment in projects relating to renewable energy, Ørsted remains at the forefront of transition in the energy sector towards a greener future.
Source: Ørsted