Oct 10 (Reuters) - Denmark's DONG Energy said 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 1.3 billion crown ($195.7 million) 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 on Monday.
The 360 megawatt 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 said.
"We will be able to use it again, if we need," he added.
The company has previously told the Nordic power market it planned to mothball the unit from April 2017. ($1 = 6.6427 Danish crowns) (Reporting by Nerijus Adomaitis in Oslo, editing by Louise Heavens)