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Ørsted continues with fossil fuel purge, exits Dutch plant

The Enecogen gas-fired power plant in Rotterdam. Source: Ørsted A/S

June 13 (Renewables Now) - Danish offshore wind-focused energy company Ørsted A/S (CPH:ORSTED) is getting rid of its stake in a Dutch gas-fired power plant as part of its plan to back away from fossil-fueled assets.

Specifically, Ørsted has signed a deal to sell its 50% stake in the 870-MW Enecogen facility in Rotterdam to Connecticut-based commodity merchant Castleton Commodities International LLC. The transaction is expected to close in the third quarter of the year. Dutch energy firm Eneco is the owner of the remaining 50% in Enecogen.

“The divestment is a step in Ørsted’s strategy to divest non-core assets and focus entirely on green energy,” said Jasper Vis, Ørsted’s country manager in the Netherlands.

Once the transaction is completed, Ørsted will have no power plants outside of its home market, where it owns and runs seven combined heat and power (CHP) plants, two heat backup facilities and one power backup plant. The company noted that most of the CHP facilities have already been converted or are in the process of being converted from fossil-fuels to sustainable biomass.

Ørsted also mentioned that the share of green energy in its heat and power production has surged to 64% at end-2017 from 13% in 2006. The company’s goal is for this share to hit 95% in 2023. Moreover, it expects that coal will have been phased out entirely by then.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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