Hot|Cool NO.3/2016 - "Cooperation in the energy sector"

N0. 3 / 2016

INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING

COOPERATION IN THE ENERGY SECTOR

DBDH - direct access to district heating and cooling technology

www.dbdh.dk

CONTENTS

4 6

THE COLUMN

HEAT ROADMAP EUROPE: QUANTIFYING HOW DISTRICT HEATING CAN SIMULTANEOUSLY INCREASE EFFICIENCY AND INTEGRATE MORE RENEWABLE ENERGY

9 11 14 16 20 22 25 28 30

COLLABORATION ACROSS SUPPLY AREAS RESULTS IN NEW OPPORTUNITIES

CREATING EUROPE’S LARGEST INTERCONNECTED DISTRICT HEATING NETWORK: THE RHINE-RUHR DISTRICT HEATING TRUNK LINE

A ONE STOP SHOP FOR DISTRICT ENERGY SYSTEM SOLUTIONS

WHY DISTRICT ENERGY IS THE SOLUTION OF THE FUTURE

THE SUN IS BECOMING IMPORTANT FOR DISTRICT HEATING IN DENMARK

THE VALUE OF METER DATA – ADDING INTELLIGENCE TO DISTRICT HEATING

FINANCING DISTRICT ENERGY PROJECTS

MEMBER COMPANY PROFILE: BWT

LIST OF MEMBERS

COOPERATIONS IN THE ENERGY SECTOR

HOT|COOL is published four times a year by:

DBDH Stæhr Johansens Vej 38 DK-2000 Frederiksberg Phone +45 8893 9150

Total circulation: 5,000 copies in 50 countries

info@dbdh.dk www.dbdh.dk

ISSN 0904 9681 Layout: DBDH/galla-form.dk

Editor-in-Chief: Lars Gullev, VEKS

Pre-press and printing: Kailow Graphic A/S

Coordinating Editor: Kathrine Windahl, DBDH

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By Lars Gullev, Managing Director VEKS and Chairman of DBDH THE COLUMN

In one of Europe's largest urban areas - the Ruhr district of Germany - work has begun to connect two very large district heating systems with a district heating transmission line. Here, three companies have joined forces in a unique project that will reduce annual CO2 emissions by about 100,000 tons. The establishment of the transmission line means an increased use of industrial surplus heat; surplus heat from waste incineration; as well as surplus heat from CHP plants. More details about this unique project can be found in the article "Creating Europe’s largest interconnected district heating network: the Rhine-Ruhr district heating trunk line”. In the last theme article, we move forward to the United States - to Bridgeport, Connecticut, US, which is a city with 150,000 inhabitants. Here, a small developer wishes to establish a district heating system; however, it can prove difficult to get a comprehensive overview of all the supplies that are required in order to establish such a system. Therefore, ten Danish companies with extensive experience in the district heating sector have come together in a consortium which means that the developer only needs to contact one place - in short, a "one stop shopping". The article "One stop shop" provides a quick introduction to this concept which can be useful in many cities with no district heating today - or only limited distribution. I hope that you, the readers, will be interested in partly the focus articles, but also the other articles in this issue of Hot Cool. If you know of any exciting district heating projects that can be inspiring for others, please do not hesitate to submit your article proposals to us.

For too many years, we have been too confined in our thinking when it comes to energy. We have focused on industrial production, power generation, waste disposal, heating and transport as independent sectors to be handled individually and thus without focusing on a possible integration. Thinking across the sectors has not been the norm. However, if we are to tackle the challenges that we face in relation to the better use of the resources of the earth, it is imperative that we stop this "silo thinking" and instead take a more holistic approach to the world. By integrating the different sectors, it becomes possible to make what in one sector is a surplus product in another sector function as a resource. Thereby we can initially limit the use of fossil fuels such as coal, oil and natural gas, but we can also in the long run stretch the resources of renewable energy even more.

In this issue of Hot Cool, we have three articles covering the theme "Cooperation in the energy sector".

Although there is an increasing focus on energy efficiency and better use of our resources, most people would probably agree that we could do a little better than we do today. However, for most people it is probably very surprising - or maybe even shocking - that today in Europe we are wasting energy equivalent to the entire amount of energy needed to heat our buildings. Yes - it is appalling that we do not have more focus on the problem. The article "Heat Roadmap Europe: Quantifying how district heating can simultaneously increase efficiency and integrate more renewable energy" provides a clear picture of how thinking across sectors can help use vast amounts of waste heat, and can provide a much more efficient use of renewable energy in our urban areas.

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By David Connolly, Susana Paardekooper, and Kenneth Hansen, Aalborg University

It is much more difficult to explain the concept of energy efficiency for district heating. Heat savings are simple; they reduce demand so you no longer need to supply the heat. District heating does not reduce the demand for heat and in fact, it is often argued that it actually increases demand due to the additional losses in the pipes. So how does it improve energy efficiency? The key to this is that district heating enables you to use sustainable energy that otherwise could not be utilised, simple! District heating creates new connections between different types of sustainable energy, and a more interconnected energy system. Integrating excess heat with district heating Today, excess heat comes from three primary applications: power plants, industry, and waste incineration. Power plants are typically designed to produce electricity with an efficiency of approximately 40%; the remaining energy is usually exhausted from the power plant as heat into the surrounding sea, lake, or river. Similarly, during many industrial processes, such as a fuel, chemical, or metal production, large quantities of heat are also thrown away as a by-product. Waste incineration is a form of waste-treatment during which large quantities of trash are collected and burned in a furnace, producing heat and electricity as by-products. All of these forms of excess heat already exist in the energy system today, and are in different ways expected to be part of our future. The quantity of excess energy in Europe from these sources, which is effectively wasted, was quantified in Heat Roadmap Europe. Figure 1 presents the energy flow in Europe’s energy system today in three different steps: • Primary energy supply: the total energy required for the system before conversion. This means before the losses of transformation, for example while producing electricity or refining fuel. • Final consumption: the ‘useful’ energy produced for the consumer, before the losses in the grids and networks. • End use: the total amount of energy actually used by the consumer as a final product. By looking at these three distinct steps separately, Figure 1 indicates that there is more energy lost, primarily in the form of heat during the production of electricity (i.e. step 1 to step 2), than the total heat demand in all of Europe’s buildings and industry combined (i.e. step 3). In other words, there is more excess heat available today than would be required to heat every building in Europe. Wasting this energy is not energy efficient nor does it fit in the concept of a sustainable energy system.

Traditionally, the energy system was divided into three very distinct sub-sectors: electricity, heating, and transport. A division like this was sensible since each of these sectors operated very independently of one another: power plants provided electricity, boilers provided heat, and engines provided transport. Due to this historical division, many of the methods and tools developed to analyse the energy system also evolved based on this isolated sub-sector approach. However, the benefits of district heating are only visible when a more holistic approach is utilised, since it exists across multiple sectors rather than within one. This is especially true when it comes to energy efficiency. In the Heat Roadmap Europe studies [1]–[4] (www.heatroadmap.eu), a holistic energy systems approach is utilised to quantify the benefits of energy efficiency on the demand and supply side of the heat sector: district heating being one of the key changes on the supply side. This holistic approach enables us to quantify the benefits that occur when sectors and systems are connected in new ways in the energy system. Doing so revealed ground-breaking and significant results: the energy reductions and carbon dioxide savings due to energy efficiency on the supply side of the heating sector are similar to those that are feasible due to energy efficiency on the demand side (i.e. via heat savings). Therefore, it is essential that energy efficiency measures on the supply side, like district heating, are considered with equal importance for decarbonisation as measures on the demand side, like heat savings. The term ‘energy efficiency’ is often associated with a reduction of the consumer’s demand in the heat sector. It triggers the image of an old building getting the equivalent of a cosmetic makeover, as its old single-glazed windows are replaced with a modern triple-glazed equivalent. Sealing the walls and roof with new insulation will also secure the building from a cold breeze in the winter months. There is no doubt that these measures are essential and will play an essential role in the transition to a sustainable energy system, but they are not the only solution. In the past, heat savings have dominated the discussions around energy efficiency, but things are changing and now the role of energy efficiency on the supply side is starting to become a key part of the debate, which primarily relates to district heating in the cities and heat pumps in the countryside.

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Heat Roadmap Europe by mapping the location of the resource, and comparing it to the location of the heat demand that is suitable for district heating (see Figure 3). The results suggest that there is enough renewable heat to supply approximately 90% of the heat demand that is suitable for district heating in Europe (which is 50% of the EU’s total heat demand). Some of these district heating systems will be able to supply all of their heat with renewables and some will be able to provide very little, depending on the local conditions. Overall, if the urban areas in Europe are converted to district heating, then there will be enough renewable heat to supply almost all of their heat demand, primarily in the form of deep geothermal. Again, none of these renewable heat sources can be accessed if a district heating network is not in place, which is a waste of sustainable energy resources.

Figure 1: Primary energy supply (total fuel in e.g. coal, oil, etc.), final energy consumption (total fuels produced e.g. electricity, heat, etc.), and end-use demand (e.g. space heat, hot water, etc.) in the European energy system in 2010 [2]. District heating provides the connection between energy demand in buildings and homes, and this inefficiency in the electricity, industry and waste sectors. Without a district heating system in place, none of these excess heat sources can be used to heat the buildings nearby and alternative, additional, heat supplies must be used. For example, an extract from the Pan- European Thermal Atlas (Peta), which is available on the Heat Roadmap Europe website (www.heatroadmap.eu), demonstrates the scale of this potential for Belfast in Northern Ireland. As displayed in Figure 2, the heat demand suitable for district heating (blue area with blue-boxed feature data) is over 16 PJ/ year. This is located next to a power station (black triangle) that could supply up to 12.68 PJ/year of excess heat. If a district heating system is installed, then up to 75% of the heat demand in Belfast could be supplied using excess heat from this single power plant. Without the district heating network in place, all of this energy is wasted in the sea nearby, and gas has to be imported to heat the buildings.

Figure 3: Mapping of various renewable heat resources in Heat Roadmap Europe [6], [7].

Integrating renewable electricity with district heating The final source of sustainable energy that is accessible using district heating, and which also relies on the integration of the system, is renewable electricity such as wind and solar power. Heat pumps, especially large scale, play a crucial role in this. The key to this is the cost of energy storage: thermal storage on a district heating network is approximately 100 times cheaper than electricity storage (see Figure 4). By connecting the heating sector with the electricity sector, renewables can be introduced into the heating sector and thermal storage options can be used to store (electric) renewable energy. Consequences of this are evident from the scale of energy storage that is installed in Denmark compared to other countries without district heating. Denmark has approximately 65 GWh of thermal storage on its district heating network, whereas Britain has approximately 27 GWh of electricity storage installed on its electricity grid. This means that Denmark has almost double the energy storage capacity of Britain and Denmark is already utilising this thermal storage to integrate renewable electricity, primarily wind power.

Figure 2: Image of Belfast from the Pan-European Thermal Atlas [5]: www. heatroadmap.eu. It displays the heat demand in the city by heat density and it is possible to select the area in the city that is suitable for district heating (it is selected in this image and therefore highlighted in blue). Upon selecting the potential district heating area, a variety of statistics are displayed on the left panel: for example, the heat demand in this selected area is 16,370 TJ/ year. It is also possible to select potential heat sources to identify the maximum potential for excess or renewable heat nearby. In this case, a power plant to the North of the city is selected, indicating that there is 12.68 PJ/year of potential excess heat available. Integrating renewable heat with district heating Similarly, there are also various forms of renewable heat that can only be utilised if a district heating network is in place. These include large-scale solar thermal, shallow geothermal, and deep geothermal. Each of these resources is analysed in

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Quantifying the benefits of district heating In the Heat Roadmap Europe studies, we have quantified how a more connected heating sector, with district heating playing a major role, would perform in terms of cost, energy efficiency, and renewability. Part of this has been understanding how much of Europe’s heat demand is located in urban areas with a sufficient heat demand for district heating using advanced geographical information systems and energy planning models such as EnergyPLAN (www.EnergyPLAN.eu). The results indicated that approximately 50% of the heat demand in Europe’s buildings are within areas with sufficiently high heat demands for district heating, even though less than 15% of the heat demand is currently supplied using district heating. By facilitating the integration of more excess heat, industrial heat, renewable heat, and renewable electricity, district heating can simultaneously increase the efficiency and utilisation of the renewable energy in the energy system. These benefits are created by district heating and its ability to create new connections in the system between the different energy sectors, so they are only visible if a total energy system approach is used to model and analyse the alternatives in the heating sector. This is because the connectedness means that the benefits will fall across multiple sectors rather than one. For example, capturing excess heat from the power plants will occur in the electricity sector, but the benefits will primarily occur in the heating sector. Similarly, integrating wind power using thermal storage will require an initial investment in the heating sector (i.e. to develop the network and storage), but it will also benefit the electricity sector by facilitating the integration of more intermittent renewable electricity. The challenge for the energy and district heating sector is creating these connections and finding new ways of cooperating, but the possibilities for district heating can be quantified and understood with holistic energy models that can show the potential connections and synergies.

Figure 4: Cost and efficiency of various forms of energy storage.

An example of this is presented in Figure 5 for a district heating network in western Denmark. The electric boiler in the district heating plant is activated when there is a high production of wind power, signified by the low electricity price on the spot market. In the early hours of Figure 5, the electric boiler provides heat to the consumers, which is evident by the amount of energy in the thermal storage between midnight and 05:30. However, after 05:30, the heat production is too high, so the heat produced by the electric boiler is stored in the thermal storage between 05:30 and 08:00. After 08:00, the electricity price on the spot market increases again due to a reducing wind power penetration, so the electric boiler is deactivated. Therefore, the heat that was stored can now be used to supply the consumers between 08:00 and 12:00, demonstrated by the reduction in heat stored within the thermal storage tank. Therefore, excess wind was used to fill the thermal storage between 05:30 and 08:00, and this heat was used to supply consumers during a period of low wind from 08:00 to 12:00. District heating is effectively utilising excess wind power that would otherwise be curtailed or exported at a very low price. If the district heating network is not in place, then wind power could not be integrated using cheap thermal storage like the one installed in this district heating network. This connection between the thermal sector and the electricity sector allows for a better use of resources in both sectors.

This project has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No. 695989.

For further information please contact:

Aalborg University Att.: David Connolly Institut for Planlægning, København

A.C. Meyers Vænge 15 DK-2450 København SV

Phone: +45 9940 2483 david@plan.aau.dk

Figure 5: Integrating wind power with thermal storage on a district heating network in Denmark on the 16th March 2014: From Anders Anderson of EMD International (www.EMD.dk) [8].

References 1/D. Connolly, B. V Mathiesen, P. A. Østergaard, B. Möller, S. Nielsen, H. Lund, D. Trier, U. Persson, D. Nilsson, and S. Werner, “Heat Roadmap Europe: First pre-study for EU27.” Aalborg University, Halmstad University, and Euroheat & Power, 2012. 2/D. Connolly, B. V Mathiesen, P. A. Østergaard, B. Möller, S. Nielsen, H. Lund, U. Persson, S. Werner, J. Grözinger, T. Boermans, M. Bosquet, and D. Trier, “Heat Roadmap Europe: Second pre-study.” Aalborg University, Halmstad University, Ecofys Germany GmbH, PlanEnergi, and Euroheat & Power, 2013. 3/D. Connolly, H. Lund, B. V. Mathiesen, S. Werner, B. Möller, U. Persson, T. Boermans, D. Trier, P. A. Østergaard, and S. Nielsen, “Heat Roadmap Europe: Combining district heating with heat savings to decar- bonise the EU energy system,” Energy Policy, vol. 65, no. 0, pp. 475–489, 2014. 4/D. Connolly, K. Hansen, D. Drysdale, H. Lund, B. V. Mathiesen, S. Werner, U. Persson, B. Möller, O. G. Wilke, K. Bettgenhäuser, W. Pouwels, T. Boermans, T. Novosel, G. Krajacic, N. Duic, D. Trier, D. Møller, A. M. Odgaard, and L. L. Jensen, “Enhanced Heating and Cooling Plans to Quantify the Impact of Increased Energy Efficiency in EU Member States (Heat Roadmap Europe 3),” 2015. 5/“Heat Roadmap Europe,” 2016. [Online]. Available: www.heatroadmap.eu. [Accessed: 01-Mar-2016]. 6/B. Moller and S. Werner, “STRATEGO WP2 Background Report 6: Quantifying the Potential for District Heating and Cooling in EU Member States,” 2015. 7/B. Möller, “STRATEGO WP2 Background Report 9: Mapping the Renewable Heat Resources in Europe,” 2015. 8/“EMD International A/S.” [Online]. Available: http://www.emd.dk/. [Accessed: 16-Mar-2014].

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By journalist Sebastian Kjær

In the past four years, eight small utilities from West Denmark have been collaborating on a so-called AMR (automatic reading meters) project of 130 million DKK. This collaboration has proven to be beneficial for the companies as well as the consumers. Over the last three years, 160,000 meters for remote reading have been installed in 100,000 households in Central and West Jutland. Behind the big project is an association of eight small utilities in western Jutland (see fact box). "We could have done it independently and maybe the process had gone faster if we had made it ourselves. But we have accomplished it together, which has certainly resulted in a better product in the end”, says Lars Kristensen, project manager in RAH, who coordinates the project. With a requirement by the government that all meters must be remote read by 2020, it was a set assignment. However, by joining forces across utilities and supply areas, the project has provided a cheaper as well as a better option.

"RAH and Ringkøbing District Heating Company discussed how it might be wise to make such a project together. The approach was that there would be a great signalling effect in showing that we can work together to develop something for the benefit of both customers and the local area”, says Lars Kristensen.

The companies felt obliged to deliver a solution that was competitive with the large utilities that surround them - a well- known challenge in the area, which made the collaboration grow to eight companies that, across the supply areas, could see an advantage in gathering the muscle in one project. "Traditionally, we have cooperated with a number of local companies and it was really because of that experience that we decided that we needed to make the project together. We entered the cooperation because we saw some economic and operational benefits that we would not be able to achieve alone because we are a small company”, says Henrik Brændgaard, managing director of MES, which has spent 23-24 million DKK on the project. He estimates that the project's offer of 160,000 meters has given MES and thus the electricity consumers in Brande a better price than if they would have had to purchase the approximately 15,000 meters themselves which were to be installed in their area. However, along the way there have also been other benefits than the financial ones. “We have been able to use the knowledge in the district to implement and run such a project”, says Henrik Brændgaard.

More muscle together The joint remote reading project began with coffee meetings in the town Ringkøbing back in 2011-2012, based on the political requirement that all electricity customers should have remote reading by 2020.

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Professional discussion and feedback across companies The cooperation on the AMR project is beginning to move from the establishing phase to the operational phase. However, because the new meters provide consumption data at a much higher resolution, the project also forms a breeding ground for future cooperation between the companies. “Network- technically”, we can discuss with each other. We can optimize our losses by monitoring the network better, and it gives us a better opportunity to plan the operation and expansion of the network”, says Lars Kristensen. At the same time, he has experienced that the project has been running so well that it has tied the companies together. "We definitely have the advantage that the project unites us as businesses. We know each other well, and what we do is always to everyone's mutual benefit”, says Lars Kristensen. The same satisfaction with the project across the companies is felt by MES: "I'll put it this way: what is crucial for us as a small company is that we can be part of this cooperation. Economically, we would have a higher cost if we had to go it alone, and from the customer's point of view it is an advantage to have the readings assembled in one place”, says Henrik Brændgaard. He is therefore convinced that MES will also in the future be part of the collaboration, should there be any new developments. FACTS: THE INVOLVED UTILITIES RAH (electricity distribution and trade) MES (electricity distribution and trade) Grindsted Electricity and Heating Plant Ikast Plants (electricity, water and heating) Thy / Mors Energy (electricity distribution and trade) Struer Utility (electricity, water and heating) Ringkøbing District Heating Company Ringkøbing-Skjern Utility (water company)

The company installed the last meters at the end of 2015 and is now looking forward to really utilise the new opportunities.

"We will have some costs for IT, which we did not have before - but in turn, we save some administrative expenses. In economic terms, it is not certain that it is an advantage for us, but the consumers will get a better overview of their consumption and no longer have to read the meter and submit a statement. In the long term, we must ensure additional value to both consumers and ourselves with the extra data that the new meters provide”, says Henrik Brændgaard. Full overview to the consumer With the newmeters the electricity, water and heating customers do not have to read their consumption but it is far from the only benefit. The new meters collect even more data on customer consumption, and the cooperation has opened the door to utilize the data better. "Forbrugerweb.dk (consumerweb) is our way of showing our clients a comprehensive overview of their consumption. What is unique about our relationship is that it's different companies that enter the data into the website, so that the customers can see their consumption of both water, heating and electricity - in one place”, says Lars Kristensen. At the same time, it was important for the consumer-owned electricity companies to show the consumer's own data in a way that is easy to understand and benefit from. “It is very important to us that it is user-friendly and simple, so you can get an overview quickly. We are the first to make a consumers' web showing the economic numbers instead of e.g. consumption in kWh. We show our customers that if their consumption continues as it is now, then they will have to pay e.g. 400 DKK more by the end of the year”, says Lars Kristensen. In addition to an overview of personal consumption - of electricity, water and heat – the platform also allows the customer to compare his household with similar households. This makes it possible for the household to see if the consumption is higher than similar households, thus providing the customer with an incentive to save. “At the same time, the customer can put alarms on different things within the system, so that they e.g. get notified if there is a leak in the summer cottage”, explains Lars Kristensen. However, the extra data is not just for customers' sake - it also has great value for the utilities, as they gain more knowledge about the pressures in the network at the customers' end.

For further information please contact:

Sebastian Kjær sebastiankjaer.all@gmail.com

RAH Service Att.: Per Nielsen, CTO PNI@rah.dk

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By Mr. Dr. Klaus Spindler, Fernwärmeschiene Rhein-Ruhr

of Energieversorgung Oberhausen AG, summarizes the key advantages of the new trunk line: “There are four good reasons in favor of the project: security of supply, price stability, climate protection and responsibility for the future. District heating not only represents an environmentally friendly alternative to off-peak electrical storage heaters, oil or natural gas, but also creates greater price stability for heating customers.”

An efficient, innovative and environmentally friendly supply of thermal energy, and security of supply for one of Europe’s largest metropolitan areas: These are the objectives of the planned Rhine-Ruhr District Heating Trunk Line, which will create Europe’s largest interconnected district heating network – taking the Ruhr district a great step forward in its transformation from an industrial center to one of the world’s leading climate protection zones. With the new Rhine-Ruhr District Heating Trunk Line which is to be installed between the existing district heating trunk lines of the Lower Rhine and the Ruhr, the people living in the region can enjoy heating supplies which are secure in the long-term, environmentally friendly and available at stable prices, and benefit from a reduction of about 100,000 metric tons in CO2 emissions each year.

Johannes Remmel, North Rhine-Westphalian Environment Minister, meeting with representatives of the project company and the city of Oberhausen near the planned route of the trunk line Key project of regional CHP policy With the planned district heating line, all project partners will be able to draw upon larger quantities of CO2-free waste heat and CHP energy. In this way, the Rhine-Ruhr District Heating Trunk Line will make a major contribution to the CO2 and CHP targets of the State of North Rhine-Westphalia (NRW). In May 2013, North Rhine-Westphalian Environment Minister Johannes Remmel presented the results of the feasibility study “District Heating Prospects in the Ruhr District up to 2050”. The study, commissioned by the State’s Environment Ministry, indicates how efficient, innovative and environmentally friendly heating supply can be secured in the long-term for the Ruhr district, one of Europe’s largest conurbations, by linking the existing district heating trunk lines of the Lower Rhine (Duisburg- Moers) and the Ruhr (Herne-Essen). The Environment Ministry of the State of North Rhine-Westphalia had commissioned the feasibility study from BET in Aachen. The study follows on from the combined heat and power potential study for NRW of 2011, and shows how in 2050 – with changed generation structures – the Ruhr metropolis can be supplied with thermal energy from combined heat and power generation. The feasibility study reaches the conclusion that linking the Lower Rhine and Ruhr district heating lines by constructing a new trunk line is a sensible step. Connecting the district heating networks

Udo Wichert, Managing Director of STEAG Fernwärme GmbH and Chairman of the Supervisory Board of the project company, receives the KlimaExpo. NRW award from Garrelt Duin, the Minister for Economics of the state of North Rhine-Westphalia. A project company, Fernwärmeschiene Rhein-Ruhr GmbH, was founded in March 2015 to implement the project. Its shareholders are the local authority owned companies STEAG Fernwärme GmbH (56.6 %), Fernwärmeversorgung Niederrhein GmbH (25.1 %) and Energieversorgung Oberhausen AG (18.3 %). The object of the venture is the planning, construction and operation of the Rhine-Ruhr District Heating Trunk Line. From 2017 onwards, the new district heating line is to be installed step by step. The new line will also permit the incorporation of additional industrial and renewable sources of energy. These include waste-to-energy plants, industrial facilities producing waste heat, gas- and coal-fired combined heat and power (CHP) plants and thermal energy from renewables-based CHP plants. Udo Wichert, Managing Director of STEAG Fernwärme GmbH and Chairman of the Supervisory Board of the project company, emphasizes the project’s considerable benefits for the whole state: “The new district heating line opens up great potential for supplies to the people in North Rhine-Westphalia. This genuine energy transition with a local character can ensure that the vision of the Ruhr metropolis as a European green capital becomes reality.” Bernd Homberg, Technical Director

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Furthermore, finding a route for the trunk to cross certain parts of the city of Oberhausen proved challenging for several reasons: The planning is constrained by gas pipelines and corresponding, multiple protective zones, the possible touching of a protected habitat and very limited space between a motorway and the adjacent Emscher river. To overcome these constraints, the planning team decided to route the trunk line in buried form through a large tunneling with a length of almost 2 kilometers and a depth of up to 15 meters (varying with the landscape) – a rather elaborate solution. The tunnel will pass under the Emscher river and will run close to the Oberhausen football stadium. In another area of Oberhausen where the new line is to cross a waterway (Rhein-Herne Canal), a pipe bridge with a span width of 72 meters will be constructed.

would unleash a great potential for supply to the people in the state. Consequently, the link between the district heating lines of the Lower Rhine and the Ruhr was enshrined as a political objective and a key project of CHP policy in the 2012 coalition agreement between the governing Social Democratic Party (SPD) and the Green Party.

The architectural solution of Atelier Fritschi + Stahl (Düsseldorf) will integrate selected sections of the new line into renatured areas by constructing a balcony- like walkway on top of the pipelines.

Intensive planning effort to optimize route The new district heating line is to run from the existing Ruhr district heating trunk line in the south of Bottrop to the Lower Rhine district heating trunk line in the north of Duisburg. The start of construction is planned for 2017. Individual sections could go into operation as early as 2019. The precise route of the line is still being planned. An initial draft provides for around 60 percent of the line to be laid above ground and around 40 percent to be buried. The line will for the greatest part pass through land owned by public authorities and industrial enterprises. The disruption caused by construction and pipe laying work is to be kept as small as possible by dividing the work into individual sections and technical functions, and by precise planning of the operations. Main roads with heavy traffic, for example, will be crossed by pipes driven underground, so as to avoid any notable inconvenience. In general, where road and pathway crossings are required, the work will be performed just in time. The route of the line and the structures required are being planned in such a way that there will be only minor disruption to existing buildings, facilities and land. Technical challenges to overcome Constructing a new connecting line with an overall length of almost 25 kilometers through a densely populated area like the Ruhr district presents complex technical challenges for the technical project teams. For one, the integration of pipelines into renatured areas has to be considered in order to respect the recreational aspects of said areas. For this, the project company commissioned the Atelier Fritschi + Stahl (Düsseldorf), which developed an architectural design solution for selected segments of the new trunk line. On certain sections, a balcony- like walkway will be erected on top of the pipelines, thus ensuring the best possible integration into the landscape and, at the same time, upgrading the recreational value of these areas.

Schematic map of the Rhine-Ruhr District Heating Trunk Line's planned route and its heat sources.

Apart from optimizing the trunk line’s route, the planning team needed to devise technical solutions to ensure the smooth operation of what will become Europe’s largest interconnected district heating network. For example, amongst other things different operating temperatures of the new and the Lower Rhine trunk line posed the question of whether the trunk lines should be connected by thermal link (i.e. by means of heat exchangers) or by hydraulic link (i.e. directly connecting the pipes). In the end, the decision was made in favor of a hydraulic link since this solution offers higher flexibility and is favorable from an economical point of view. To compensate for the pressure loss along the trunk line, a pressure boosting station will be installed in Duisburg-Walsum. Next to this pressure boosting station, additional pressure maintenance facilities will be realized to complement the existing installations in Herne. These two pressure maintenance facilities are an integral component of the overall pressure maintenance concept, which will ensure constant pressures for the overall system.

Establishing the Ruhr Metropolis as a leading climate conservation area

With projects like the new Rhine-Ruhr District Heating Trunk Line, the Ruhr district is developing step by step into one of the leading climate protection areas in Europe. The industrial region has become highly attractive with its local recreation parks and

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a tightly meshed network of leisure and cultural facilities. With

For further information please contact:

Dr. Klaus Spindler Sprecher der Geschäftsführung / Chaiman of the Management Board

Phone +49 201 801-4805 Fax +49 201 801-57-4805 Klaus.Spindler@fwsrr.de Fernwärmeschiene Rhein-Ruhr GmbH Rüttenscheider Str. 1-3 45128 Essen Germany www.fwsrr.de

Like with other trunk lines in the Ruhr district, great care will be taken to blend the Rhine-Ruhr district heating line into the landscape as harmoniously as possible.

the technical know-how available in the region, an impressive harmony can be established between industrial and residential areas. The Rhine- Ruhr District Heating Trunk Line will also contribute to this mutually beneficial coexistence. The Ruhr district will then be richer by one more international reference project on climate protection. With its enormous CO2 savings potential, the project achieves top grades in cost-efficiency while meeting the climate targets of the State of North Rhine-Westphalia. Industrial projects create leisure facilities and opportunities for recreation For decades now, supply channels made accessible to the public and increasingly also industrial arteries, which have been closed down and then restored, crisscross the Ruhr and form a unique network of recreational paths. They are popular and well- frequented, not least because of their attractive design, and have long become an integral part of the region’s unique rural character. As with previous comparable projects, care is being taken to ensure that the Rhine-Ruhr District Heating Trunk Line too will blend in harmoniously with the landscape of the Ruhr, characterized as it is by attractive industrial heritage sites and untouched nature. Specialist firms appointed have therefore been meticulously planning the course, meter by meter, of the around 25 kilometer long line.

Customised Boiler Solutions - Optimised Revenue Potentials

Industries: - Combined Cycle Power Plants - Combined Heat and Power - Cogeneration Benefits: - Highest efficiency in the market - Prepared for fast start-up/shut-down - Easy operation and maintenance

Heat Recovery after Gas Turbines

Industries: - Refineries - Paper/Pulp - Mining Benefits:

Process Steam Production

- Fuel savings using HRSG with added burners - HRSG availability in case of turbine stoppage - Fuel flexibility (natural gas, waste gas, oils)

Industries: - Ferro Silocon Production - Steel Production - Cement Production - Metal Furnaces

Industrial Waste Heat Recovery

Benefits: - CO2 savings

- Power production potentials - Optimised waste/dust handling

Aalborg Engineering A/S | DENMARK | Phone: +45 96 31 39 50 Aalborg Engineering Slovakia s.r.o. | SLOVAKIA | Phone: +42 136 631 5518 www.aalborg-engineering.com

www.dbdh.dk

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By Henning Lambertsen, CEO and partner, Damgaard Consulting Engineers

Feasibility, financing and construction The close collaboration and mutual trust together with an openness to experience and co-financing in the development phase are important parts of the concept. For a project developer, the first phase is always difficult; we aim to co-finance the feasibility phases of valuable business opportunities. If the project proves to be feasible and is to be constructed, Clean Solution establishes a project specific group of companies, i.e. a consortium that may also comprise members to take on the role as EPC (engineering, procurement and construction) responsible. The consortium is open for other models of cooperation involving local partners. The consortium is able to facilitate and negotiate the best customised financial solutions including supplier credits guarantees by cooperating with EKF, Denmark’s Export Credit Agency. The financial solutions have attractive interest rates, terms and conditions, which makes it favorable for clients to proceed with the consortium. The American dream United States relies primarily on steam-based district heating, which can be expensive affair to operate and maintain as well as being a potential safety hazard.

“A total system solution package” is the core of Clean Solution.

Clean Solution A group of Danish organizations headed by CLEAN have joined forces and entered into a partnership that offers clients with projects a simple but efficient concept - a “one stop shop”. This includes all phases of the project from the conceptual phase and feasibility study to the design of technical solutions, but also financial solutions and finally construction. For many this is not a new concept: Danish companies are well known for delivering turnkey solutions within large-scale energy projects such as wind power and large power plants. Based on these experiences, Clean Solution is making its landmark. Scandinavian district energy systems are known as world- leading within technical solutions and concepts for smart cities. However, Scandinavian exports are mainly based on general consulting services and individual component sales. These individual approaches make it difficult for international project developers to control and implement such large energy systems from Scandinavia. Clean Solution is confident that the establishment of the cooperation method may solve these challenges: a “one stop shop” concept for international clients and project developers.

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The City of Bridgeport is an example of this. The city is located 100 km/65 miles northeast of New York City on the New York-Boston corridor. Bridgeport is a perfect model for low-temperature district heating with its 150,000 inhabitants and available surplus heat. A traditional steam system would never be feasible, but the hot water system with Scandinavian solutions is. Connecticut developer NuPower Thermal LLC is developing the district heating system and is cooperating with the Danish Clean Consortium (DCC) – the consortium established specificly for the Bridgeport project. NuPower was inspired by the Copenhagen model and Scandinavian efficiency and wanted similar solutions to create a low-temperature heating and cooling system. NuPower is a relatively small company and it is important for this company to have only one contract for the entire project. This will minimize NuPower’s risk and ensure a better basis for future investors. The project has been approved as a sustainable energy solution and thus shares can be sold to investors as “green bonds”. Such green bonds are in general very attractive for investors which is very positive for the project. Technically, the Bridgeport project is to use existing surplus heat from a fuel cell plant owned by the utility company and a local waste incineration plant. The use of waste heat is maximized by designing a low-temperature district energy system as the Scandinavian model. Of course, the Scandinavian model needs an American flavor, and the Danish Clean Consortium is elaborating solutions to fit local requirements. The district energy system in Bridgeport will replace heat from natural gas / shale gas, and reductions in emissions are significant. There will be a 70% reduction of greenhouse gas emissions, amounting to 9,500 tons of CO2 a year. The package for Nupower offered by the DCC consists of designing the conceptual phase, developing the project together with the customer, identifying the right technical providers, secure co-financing both for the feasibility study and also for the implementation of the project. Bridgeport is not the only US city in focus for Clean Solution. CHP (combined heat and power) currently makes up about 8 percent of the total electricity generating capacity of the U.S. The present installed capacity of CHP in the U.S. is about 82 GW, and the Obama administration has set an official goal of 40 GW of additional CHP capacity by 2020. This will include a significant number of district energy systems. Additionally, as the U.S. EPA establishes new rules to reduce CO2 from power plants, CHP including district energy systems has been identified as a critical tool to reduce CO2 cost-effectively. A dream team More than 10 Scandinavian companies are cooperating in order to deliver the total solution for the client in Bridgeport. Most of the companies are members of the two organizations CLEAN and DBDH.

CLEAN is a cluster organization, which facilitates partnerships and drives projects within the cleantech area. In cooperation with DBDH, the leading Danish district energy export organization, these two organizations support and facilitate solution-based projects with the district energy sector. The member companies are the best and most experienced from the district energy sector in Denmark. This makes it possible to create a dream team of companies suited for projects in the area of district energy and cooling - a team that will not only co-finance the initial concept phase, but a team that will be onboard until the system is in operation. The combination of a total system solution package and the world leading expertise among the companies makes one stop shopping for the client more simple and convenient. The Danish project in Bridgeport is led by ABB and Logstor but also comprises the companies Alfa Laval, Kamstrup, Desmi, Broen, OE3I, and F.W. Rørteknik A/S. The consortium is able to deliver all needed equipment for the turnkey district energy system in Bridgeport. SCC (Scandinavian Clean-tech Contractors) is led by JFE A/S, MIH VVS and Damgaard Consulting engineers - a group of companies that in cooperation with local contractors are going to build the system in Bridgeport. It is planned that SCC will be the EPC contractor working with the Danish Clean Consortium in Bridgeport.

NuPower is the project developer and investor of the district energy system in Bridgeport.

For further information please contact:

Damgaard Consulting Engineers Att.: Henning Staugaard

Lambertsen Algade 43, 3 DK-4000 Roskilde

Phone: +45 46 32 04 70 Mobile: +45 29 25 21 57 E-mail: hela@damgaard-ri.dk

www.dbdh.dk

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By Oddgeir Gudmundsson, Jan Eric Thorsen and Marek Brand, Danfoss Heating Segment Application Centre, Denmark.

logistically as transportation of gas and electricity is simple per energy unit. Financial reasons have played both direct and indirect role, directly as accessing the renewable energy sources can be investment expensive and hence not practical on building level and indirectly as the “energy product” is characterized by low temperatures, which makes it impractical to transport the energy over vast distances, which limits the market potential. However, today we have the knowhow, the experience and the technology to tap into the abundantly available renewable energy sources and supply the energy in an efficient manner to the building mass through water based distribution networks, known as district energy systems. Currently district heating has on average only 9% market share in the heat market in the EU. This is well below the feasible market share, which has been estimated to be between 60- 80% of the heat market in various countries [1]. A certain proof of that statement can be found in Denmark, Sweden and Finland, where the market shares were approximately 65%, 50% and 50% respectively in 2011. In the eastern European countries Lithuania and Latvia, the market shares were 67% and 64% respectively in 2011.

In the recent COP 21 meeting in Paris a global agreement was signed with a goal of limiting the global warming to less than 2°C compared to pre-industrial levels. Further, the parties will pursue efforts to limit the temperature increase to 1.5°C. This is a monumental agreement and the census is that to achieve this goal greenhouse gas emission must become net zero in the period of 2030 and 2050. This is very ambitious goal and will require significant changes in the world energy structure. The energy statistics from the European Union (EU-28) shows that households are responsible for around 39% of the final energy consumption, excluding transport. Of the household energy consumption a major share is used for heating and cooling purposes. Here it becomes very interesting as the energy quality needed for space heating and cooling is very low. In fact the required energy quality is so low that there is abundance of suitable energy sources around us. Despite the fact that there is an abundance of suitable energy sources available for fulfilling space heating and cooling demand the demand is today primarily being met by high quality energy in the form of either gas or electricity. The reason for the mismatch between needed energy quality and delivered energy quality is from historical, logistical and financial reasons. Historically, due to the formerly wide acceptance of using fossil fuels, and

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