Orsted sees biomass shortage as Europe seeks alternatives to gas

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COPENHAGEN, June 30 (Reuters) - Danish energy firm Orsted (ORSTED.CO) faces a biomass shortage at its combined heating and electricity plants as demand for power made from other sources than gas is surging as more nations move away from Russian fossil fuel, it said on Thursday.

The shortage illustrates the tight supply seen across energy markets in Europe following Russia's invasion of Ukraine as governments and companies race to stockpile ahead of winter.

To ensure it has enough sustainable biomass for its district heating customers for the next heating season, the Danish firm expects to use coal at two of its plants this summer, it said in an emailed comment to Reuters.

"The combination of greater demand for biomass ... and a smaller supply of biomass in general, means that we can't obtain enough sustainable biomass to be able to meet the increased demand for electricity from our combined heat and power plants over the summer," it said.

Orsted has previously said it would stop sourcing biomass and coal from Russia. It stuck with its target to ditch coal burning completely from March 2023, it added.

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Reporting by Stine Jacobsen in Copenhagen, editing by Terje Solsvik

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