Ørsted ceases all biomass and coal sourcing from Russia

The Danish energy firm will stop buying biomass and coal from Russia for its power stations and will not enter into new contracts with Russian entities.

PHOTO: Gazprom's Amur gas processing plant. Gazprom

Ørsted is also looking to limit its dependence on Russian gas, but has a long-term gas purchase contract with Gazprom, which was signed in 2006 and expires in 2030.

Under the contract Ørsted receives 20 terrawatt hours (TWh) of gas from Gazprom per year. The gas is mainly delivered to Germany and later transported to Denmark and Sweden.

The contract with Gazprom was a take-or-pay contact which cannot be terminated now, but the company does not intend to extend it further, says Ørsted.

“The company supports any political initiative to become independent of Russian gas as well as any political import sanctions that may be imposed. Any such initiatives will be immediately and strictly implemented,” it says.