DONG Phasing Out Coal by 2023

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Danish energy giant DONG Energy A/S (Fredericia, Denmark) has announced that it will phase out coal at all of its power stations within the next six years.

The company said that it wants all of its power stations burning sustainable biomass by 2023. The decision makes it the first of the large European energy companies to decide to phase out coal for the production of electricity and heating completely. DONG is currently Europe's largest developer of offshore windfarms and is aiming to change its business model to that of the leading sustainable and green energy company in Europe.

In the past 10 years, the company said that it has reduced its coal consumption by 73% and wants to complete the process in the near future.

"We've decided to take the final step and phase out the use of coal at all our power stations," explained Henrik Poulsen, DONG chief executive officer. "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."

The company hopes that in the space of one decade it will have changed from "one of the most coal-intensive utilities in Europe" to being among "the greenest energy companies in Europe."

Te company has been converting its Danish power stations since 2002, starting with the Herning and Avedøre power stations. In 2016, both Studstrup power station near Aarhus and Avedøre near Copenhagen were converted to run 100% on wood pellets and straw, and during the spring of 2017, Skaerbaek Power Station near Fredericia will be able to run 100% on wood chips. The company is now looking to convert its remaining two coal-fired power stations: Asnæs Power Station and Esbjerg Power Station. It is now talking with the heating customers of both plants regarding the possibilities of converting the two power stations to use wood chips as fuel instead of coal when the existing heating agreements expire at the end of 2017 and 2019.

Last November, Industrial Info reported DONG's plans to get out of the oil and gas business. It appointed JP Morgan Chase (NYSE:JPM) to review the assets which are valued at more than $2 billion. For additional information, see November 10, 2016, article - DONG To Exit Oil and Gas Sector.

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