Dong Energy makes Studstrup plant run on wood pellets instead of coal

Denmark-headquarted Dong Energy has announced that it has converted one unit of its Studstrup power plant in Aarhus to run on wood pellets instead of coal, while the second unit will be mothballed, helping to reduce carbon emissions.

The conversion would allow Denmark's second-largest city to reduce emissions by 310,000 tonnes annually as it seek to become carbon-neutral by 2030, the company said in a statement.

The 360MW capacity unit will be able to supply heating to more than 100,000 Danish homes and electricity to about 230,000 homes using biomass.

The second unit of a similar size, which has been running on coal, will be put on reserve, meaning that it could be activated within a month, a spokesman told Reuters.

"We will be able to use it again, if we need," he added