Dong Energy to phase out coal by 2023

Dong Energy has announced it will convert all its remaining coal-fired power stations to biomass by 2023.

“We’ve decided to take the final step and phase out the use of coal at all our power stations. The future belongs to renewable energy sources, and therefore we’re now converting the last of our coal-fired power stations to sustainable biomass. The decision is in line with our vision to lead the way in the transformation to a sustainable energy system and create a leading green energy company,” says Henrik Poulsen, the company’s chief executive.

Since 2006, Dong Energy has reduced its coal consumption by 73 per cent through a reduction in the number of power stations as well as conversions to biomass. It has used wood pellets and wood chips as fuel at both Herning Power Station and Avedøre Power Station since 2002, and over the years, the company has increased the share of biomass at the two power stations. In 2016, both Studstrup Power Station near Aarhus and Avedøre Power Station near Copenhagen were converted to run 100 per cent on wood pellets and straw, and during the spring of 2017, Skærbæk Power Station near Fredericia will be able to run 100 per cent on wood chips.

It will now look to convert its coal-fired power stations at  Asnæs and Esbjerg, once the power stations’ current heating agreements with the local communities expire at the end of 2017 and 2019, respectively.

Dong made the announcement on the same day as it released its annual report for 2016, which showed operating profit (EBITDA) from continuing operations rose by DKK 10.4 billion in 2016 to DKK 19.1 billion. This was partly driven by the wind power division almost doubling its earnings with an increase in EBITDA of DKK 5.7 billion, driven by higher activity from the construction and divestment of offshore wind farms

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