DBDH publishes Hot Cool, but the main business is helping cities or regions in their green transition. We will help you find specific answers for a sustainable district heating solution or integrate green technology into an existing district heating system in your region – for free! Any city, or utility in the world, can call DBDH and find help for a green district heating solution suitable for their city. A similar system is often operating in Denmark, being the most advanced district heating country globally. DBDH then organizes visits to Danish reference utilities or expert delegations from Denmark to your city. For real or virtually in webinars or web meetings. DBDH is a non-profit organization - so guidance by DBDH is free of charge. Just call us. We'd love to help you district energize your city!
NO. 6 / 2022
INTERNATIONAL MAGAZINE ON DISTRICT HEATING AND COOLING
District Heating PtX & Hydrogen
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E FOCUS: DISTRICT HEATING, PTX, AND HYDROGEN
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COLUMN GETTING THE HYDROGEN ECONOMY RIGHT By Morten Helveg Petersen
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THE DISTRICT HEATING PLAN – AND WHY IT DIFFERS FROM WHAT YOU THINK. By Nis Bertelsen
THE WASTE-TO-ENERGY PLANT VESTFORBRÆNDING IS IN THE FINAL
SPRINT FOR SUBSIDIES OF €1.1 BILLION FOR CCS By Steen Neuch Vedels
Feedback from our 2019 Conference
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Adriana: What made me laugh was to see how uncomfortable REPRESENTATION, BELONGING, AND IDENTITY IN THE HEAT NETWORKS INDUSTRY By Charlotte Owen
MEMBER COMPANY PROFILE: COWI By Henrik Dalsgård and Maral Taghva
the room was at the beginning of the session with the drag queens. We were all like 'oh, this is so weird...' And I was sitting next to people that I'm negoti- ating with or consultants that I work with and we were all like 'aaah....this is not what we do...". And as time went by, things just changed. People embraced it and were designing their dolls…
Lina: ...there was dancing…
The data suggests diversity correlates with better financial performance. Likelihood of financial performance above national industri median, by diversity quartile, % Ethic diversity Top quartile Bottom quartile 58
Adriana: …dancing - that made me laugh a lot! We were just so awkward and out of our com- fort space as soon as we had to do something with glitter and glue and paper!
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+35%
Gender diversity Top quartile Bottom quartile
54
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+15%
Gender and ethic diversity combined Top quartile All other quartiles
53
40
+25%
Source: McKinsey Diversity Database
1 Photo of men at board meeting from social media: https://www.linkedin.com/posts/davidclancefield_ceos-diversity- inclusion-activity-6901111290907947008-ZbS-?utm_source=linkedin_share&utm_medium=member_desktop_web
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Editor-in-Chief: Lars Gullev, VEKS
Total circulation: 5.000 copies in 74 countries 10 times per year
Grafisk layout Kåre Roager, kaare@68design.dk
2 Quote and the graphic both from https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/why-diversity-matters
Coordinating Editor: Linda Bertelsen, DBDH lb@dbdh.dk
info@dbdh.dk www.dbdh.dk
ISSN 0904 9681
https://www.districtheatingdivas.com/
GETTING THE HYDROGEN ECONOMY RIGHT
The hydrogen economy is underway, and it remains an open question in which direction it will go. Clean hydrogen can serve multiple purposes in our future society and the green transition, but heating should not be one.
By Morten Helveg Petersen, Vice-chair of the European Parliament's Committee on Industry, Research and Energy
The question is, why would we go down that road? The choices we make now define the path to a carbon-neutral economy. Investing in hydrogen infrastructure, which currently would be blue hydrogen, for domestic heating is investing in fossil fuel infrastructure, even if it is low carbon. The point of importance is that there are proven alternatives on the market, which are green from the outset, and provide consumers much more certainty that their investment will provide cheap, green ener- gy in the long run. The current push for hydrogen in domestic heating, which, amongst others, the UK government seems keen on, is wild- ly misplaced. We are amid an energy crisis, the keyword of which is energy savings. Using green hydrogen to heat build- ings via boilers would be almost six times less energy efficient than heat pumps powered by renewable energy and require a 150% increase in primary energy generation, according to a 2021 study by the London Energy Transformation Initiative. The same study concluded that blue hydrogen would result in only 58 percent of the energy in natural gas being used for heating buildings. Because of such numbers, it goes without saying that hydro- gen for domestic heating rings all the wrong bells in the cur- rent situation. For climate and consumers, investments are much better placed in proven, green technologies.
First and foremost, we need to utilize hydrogen where it makes the most sense in the carbon calculation and where electrifica- tion is not an option. In these times of energy crisis and -scar- city, we need to utilize our clean energy as effectively as possi- ble; this calls for direct electrification. But as things appear at this point, that would be areas like aviation fuel for long-haul flights, certain forms of heavy transportation, as a replacement for artificial fertilizers, perhaps as a means to decarbonize steel, and other areas where no zero-carbon alternatives exist. On the other hand, domestic heating already indulges in nu- merous alternative options, all of which offer better energy efficiency than hydrogen. Heat pumps would beat hydrogen boilers by miles in energy efficiency, even more so would dis- trict heating, a technology with the potential to cover 50 per- cent of Europe’s heating demand, according to new research. Unfortunately, the European Commission has not yet acknowl- edged the full potential of district heating. Still, district heating is potentially the most energy-efficient technology, with par- ticular synergy effects when integrating district heating with hydrogen production, utilizing the surplus heat from the Pow- er-to-X productions. On the other hand, using wind power to generate hydrogen, only to then use the hydrogen for domestic heating, represents a massive energy loss that we simply cannot afford. If we are talking about blue hydrogen, we are already off the zero-car- bon track, although the case can be made for hydrogen boilers as a transition technology.
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THE WASTE-TO-ENERGY PLANT VESTFORBRÆNDING IS IN THE FINAL SPRINT FOR SUBSIDIES OF €1.1 BILLION FOR CCS
In December 2021, the Danish gov- ernment entered a political agree- ment with a broad political majority of the parliament on a comprehen- sive CCS strategy - capture, transport, and storage of CO2 - that promotes new infrastructure and ensures regu- lation of CCS on market-based terms. The agreement ensures that the first capture facilities can be ready in 2026 and thus contribute to reducing the Danish emission of CO2.
By Steen Neuch Vedels, CEO at Vestforbrænding
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HOTCOOL no.6 2022
A tried and tested technology CCS stands for Carbon Capture and Storage. CCS is a well- known technology, that has been used in other countries for many years, but it has most often been used to increase oil extraction. Instead, the technology will now be used in Denmark to deposit the CO2 where it came from – the deep underground. The work has begun A number of conditions must be in place before a CO2 cap- ture and storage can be established in Denmark. In the Cli- mate Agreement of 2020, it was decided that CCS must be an essential piece in achieving Denmark's climate policy goals. The Danish Energy Agency has since worked to make CCS possible in Denmark. With the political agreement on a CCS strategy, the Danish Energy Agency can accelerate further and is currently work- ing on the following, among other things: Build the framework for the rules that make it possible to grant permits for geological storage of CO2 in the Danish underground.
Amend the legislation and regulations so that the frame- work for constructing and operating capture plants for municipal utility companies - for example, waste-to-ener- gy plants - becomes clear. Investigate environmental and natural impacts for the ar- eas where underground geological storage may become relevant. Therefore, the Danish Energy Agency has initiated a strategic environmental assessment (SME) of the plan for tendering for storage in the western part of the North Sea. The financing behind the political agreement The political agreement on CCS from December 2021 allocat- ed 16 billion DKK for CO2 in 2024-2048, where the funds were to be split in two phases. After two initial rounds of market dialogue, the Energy Agency published the material for the first tender round in early 2022, where Vestforbrænding ap- plied for prequalification. With this tender, the Danish Energy Agency seeks to enter into a contract with one operator. A subsidy totaling an estimated 8 billion DKK will be award for capturing and storing CO2 from flue gas from combustion.
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Vestforbrænding proud to be prequalified Just a few days after Vestforbrænding had been selected to participate in the large national tender for CO2 capture, an LOI (Letter Of Intent) was signed with the gas distributor Evida (owned by the Danish state) and Gas Storage Denmark (GSD). The three players will create an integrated solution for CO2 capture, where the captured CO2 will be stored in GSD's gas storage in Stenlille in Zealand, Denmark. The parties can thus secure the entire value chain in one integrated solution - from capture to transport and storage.
The operator must ensure CO2 reductions corresponding to at least 0.4 million tons/year - collected and permanently stored from and including the year 2026. The operator can deliver the reductions with one point source, a combination of point sources, or a portfolio of several point sources. The contract is expected to have a duration of approx. 21 years of operation. The grant is paid per ton of CO2 documented, collected, and stored permanently. Result of prequalification round At the beginning of August 2022, the Danish Energy Agency announced which applicants had been pre-qualified to bid for the CCUS pool, which aims to establish large-scale CO2 capture in Denmark from 2025 and realize CO2 reductions of 0.4 mil- lion tons annually from 2026. The Danish Energy Agency received four complete applica- tions, three of which were approved to submit bids and par- ticipate in the upcoming tender negotiations. It has been a requirement in the prequalification round that the potential grant recipients had sufficient financial and technical capacity to deliver the expected reductions in an environmentally and safety-responsible manner.
In connection with the signing of the LOI, the CEO of Vestfor- brænding, Steen Neuchs Vedel, stated:
- It is a great achievement, where we clearly demonstrate that we are able to work together swiftly for an important cause. We now stand shoulder-to-shoulder in finding a solution to handle the entire value chain. When we have dived deeper into con- solidating our project, well we present it to the public. Vestforbrænding aims to transport the captured CO2 via pipes to Stenlille in Zealand, where GSD has a large underground storage facility. - It is an enormously exciting project, that we are pleased to be a part of. This supports our ambition to show how Denmark can utilize its underground to store vast amounts of CO2 in a safe and economic way, said Adam Elbæk, CEO of Gas Storage Denmark, on the same occasion Evida has a lot of experience with large construction projects and is looking forward to collaborating on a pipeline from Vest- forbrænding in Glostrup to Stenlille. - Piped infrastructure for transporting the green gases of the future can become an essential part of the overall solution for CO2 capture and storage. We are therefore very much looking forward to contributing our knowledge and experience in the
The pre-qualified bidders were: Vestforbrænding
Ørsted Bioenergy & Thermal Power A/S
Aalborg Portland
Vestforbrænding has thus been selected to participate in the tender to allocate subsidies from the state CCSU pool of 8.168 billion DKK. The Danish Energy Agency will carry out the tender in 2022, and the winner of the tender is expected to be announced in early 2023.
Facts about the CCUS pool:
Facts about CCS:
The CCUS pool aims to establish CO2 capture in Denmark from 2025 and realize CO2 reductions of 0.4 million tonnes annually from 2026. In the first phase of the CCUS pool, the funds are dis- bursed to contribute to establishing an integrated value chain for capturing, transporting, and storing CO2. The support is given per reduced tonnes of CO2 and will be adjusted for the development in CO2 taxes - including any negative taxes for negative emissions.
Capture and storage of CO2 or Carbon Capture and Storage (CCS) works by capturing CO2 and depositing it underground. CCS can capture CO2 from large point sources, such as facilities with fossil emissions (such as waste-to-energy plants) or CO2 emissions from burning biomass, large CO2-emitting industries, and CO2 from biogas plants.
In December 2021, the Danish parliament entered into a political agreement on CCS.
Correspondingly, the development in the CO2 quota price will be included in determining the amount of support.
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work that is to come, which can significantly impact the green transformation of the energy system, stated Evidas CEO Ole Kalør in connection with the signing of the LOI. With the pre-qualification, Vestforbrænding - Denmark's largest waste-to-energy company - is the only municipally owned waste company participating in the further process. Climate, environment, and the green transition are part of Vestforbrænding's DNA. The company works to recycle as much waste as possible and ensure a climate-neutral ener- gy utilization of the residual waste. Therefore, CO2 capture and reduction are firmly anchored in Vestforbrænding's strategy and are an important milestone for the company. - We must take social responsibility, and CO2 reductions are a decisive goal for municipal and national climate ob- jectives. I believe that Vestforbrænding has a unique po- sition for selling surplus heat from CO2 capture to benefit our owner municipalities' current and future district heat- ing customers, says CEO Steen Neuchs Vedel. He points out that Vestforbrænding is rolling out a large-scale dis- trict heating project for 6 .1 billion DKK, which will convert 30,000 households from using expensive natural gas to green district heating. -In the past, there have been obstacles for municipal- ly-owned companies to bid on large tasks of building a CO2 capture facility. With this obstacle out of the way, we can intensify our work with CO2 capture and thereby contrib- ute to effective CO2 capture at our plant, and in particular, actively support both our 19 owner municipalities and the national climate effort, says Vestforbrænding's CEO, Steen Neuchs Vedel.
For further information please contact: Steen Neuch Vedels, snev@vestfor.dk
Facts about Vestforbrænding:
Owned by 19 municipalities in Zealand, Denmark
Denmark's largest waste company and Northern Europe's largest producer of waste-based district heating
Founded in 1970
Offers solutions within the collection and treatment of waste, the production of district heating and electricity, and the delivery of district heating.
Handles waste for 900,000 citizens.
In 2021, almost 500,000 tonnes of waste were converted into heat (1.26 million MWh) and electricity (199,000 MWh).
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Representation, belonging, and identity in the heat networks industry
In this podcast episode, I take over from your usual host, Morten Jordt Duedahl, to talk about the im- portant topic of gender diversity in the heat networks industry. I am joined by two fantastic women, Rachael Mills of SE2 and founder of the District Heating Divas, and Kamma Eilschou Holm, Director of CTR, a heat network transmission company in Copenhagen.
In September, I stood on a conference stage in front of 130 people in the heat networks industry, and I realised I knew almost all the women stand- ing before me. This was not a particularly hard feat – there can only have been thirty of us. Those I did not know actually came up to me and spoke to me after the event. This isn’t unusual. If I consider why I sometimes seek out other women at events, I think it’s because the social and professional con- text feels more natural and easy to navigate. Like speaking a language, you already know. For me, it is important to look around a busy room and see yourself represented; it helps me feel more included – more like I belong there. Non-binary people and people from other diverse backgrounds and circumstances will also experi- ence inclusion, representation, and belonging in other ways. It’s great to see groups like ‘Diverse Heat Networks’ springing up, with the support of major industry players in the UK, to ensure better representation across all aspects of diversity.
It is so important that people of all genders, eth- nicities, abilities, and ages have a sense of belong- ing in our industry if we want to have a happy workforce and a workforce that can harness the benefits of diversity. In an industry that needs to keep pace with the innovation in other low-carbon heating arenas and continue to grow, our work- force has never been more important. We should be investing in it every day. That sense of belong- ing is what is cultivated by groups like the District Heating Divas. Gender diversity is important for businesses and consumers too. Including women brings different perspectives, helps drive innovation, and brings more money for organisations. When you start to dig into it, gender issues are pervasive, from everything to your safety at work through to your team’s performance. For example, the Trades Un- ion Congress in the UK did a study into PPE and found that more than half (57%) of the women that took part in the survey said their PPE some- times or significantly hampered their work.
The District Heating Divas UK is open to women and anyone whose identity includes womanhood, and rumour has it, it’s expanding to Denmark too… listen to find out more and be sure to sign up! https://www.districtheatingdivas.com/
Charlotte Owen is the Principal Energy Policy Advisor at the Royal Danish Embassy in London, where she looks after heat networks and heat decarbonisation policy. Charlotte works as part of a programme called the Energy Governance Partnership (EGP), which aims to support the global green transition by sharing knowledge from Denmark on heating with other governments around the world. The hope is that by sharing experience from Denmark, other countries can expedite the rollout of low carbon heating to support the green transition. Prior to joining the Embassy, Charlotte was the Policy Manager at Water UK, and Policy Manager at the Association for Decentralised Energy, where she led on heat networks. She also sits on the Heat Trust Stake- holder Committee. In her roles, Charlotte has been providing input into the development of heat networks policy, regulation and legislation in Westminster and Scotland.
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HOTCOOL no.6 2022
This podcast episode is for all the women and people whose identity includes womanhood who have ever experienced imposter syndrome walked into a room and realised they were the only woman in it. Or put on an enormous pair of safety goggles and hoped no site visit photographs would be taken. It is also for anyone who wants to know more about experiences being a woman in the heat networks industry or who wants to help champion diversity. Whoever you are, we hope this makes you feel a little less alone and a little more included.
Meet the experts
Rachel Mills, Co-founder and Director of SE2, a consultancy helping communities and organisations make a difference in the world of climate change Co-founder of Chirpy Heat, (2019) providing impartial expert advice to not-for-profit heat network operators Co-founder and secretariat for The Heat Network, a peer group for social housing providers to meet and share good practices on their communal and district heating schemes Board member of the Association for Decentralised Energy Co-founder of the District Heating Divas. Recog- nising the supportive power of women working together, Rachael co-founded the Divas in 2019: it’s now one of the fastest growing diversity and inclusion networks in the UK energy industry, with nearly 400 members. The initiative has already launched regional branches across the UK, the first heat network industry mentorship programme, and a Young Professionals group.
Kamma Eilschou Holm, Director of CTR, a heat network transmission company in Copenhagen
Five municipalities have joined forces in the Greater Copenhagen Area to implement and operate a common district heating system. In 1984 the municipalities of Frederiksberg, Gentofte, Gladsaxe, Copenhagen, and Taarnby formed the Metropolitan Copenhagen Heating Transmission Company - CTR. We delivered 18.720 TJ heat in 2021 85% of the heat was renewable in 2021 Our heat network contains 54 km pipelines We supply 250.000 households Kamma is a lawyer and has worked in the district heating sector for over 20 years. Before coming to CTR, she worked with the Danish Ministry of Energy, the Danish Utility Regulator, and the Danish District Heating Association.
Podcast links:
Apple Podcasts Connect
Google Podcasts for Android
Spotify
RSS.COM
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THE DISTRICT HEATING PLAN – and why it differs from what you think. The need to change how we heat our homes has been put into overdrive with the in- vasion of Ukraine and the following energy and natural gas crisis. This urgent need to get rid of the expensive fossil fuels only adds to the long list of other reasons: climate change, energy poverty, and air pollution. But how should the energy planner in charge of the switch from individual boilers to collective district heating systems approach this enormous task? The most used approach is to make a plan. The plan is a document that outlines different technical, economic, and environmental benefits and consequences. In this article, I try to sketch out the role of this district heating plan and why it might be different than commonly understood.
By Nis Bertelsen, energy analyst, PhD
10 HOTCOOL no.6 2022
Out with gas and prepare for a low-carbon heat system There is a pressing need to change how we heat our homes around Europe and the world. A new urgency has arrived with the Russian invasion of Ukraine and the subsequent energy price crisis. Natural gas, oil, coal, wood pellets, and most other combustible fuels are now expensive and scarce resources. The price of natural gas, the single most used fuel for heat supply, is now at a point that threatens to bankrupt families or forces them to freeze during winter. This should be seen in combination with the challeng- es the energy and heating sector has been struggling with for years. Climate change is probably the single largest threat to our society, but it is also a long-term and a not so tangible challenge to face. Air pollution is a significant threat to the health and well-being in some countries. The biodiversity crisis puts new per- spectives on the sustainability of using biomass for heat supply. Energy poverty has long been a subject in some countries, while in others, for example, Den- mark, it is a new challenge that a portion of the popu- lation struggle with paying their energy bills. There are many reasons to switch from old dirty boil- ers to clean heating. In dense urban areas, district heating has the potential to solve many of the chal- lenges mentioned above. By switching from individu- al heat supply in single buildings to collective heating, it becomes possible to exploit hard-to-reach but read- ily available heat resources: excess heat from industry, data centers or power plans, geothermal resources, large-scale heat pumps, or large-scale solar thermal. I am sure this is known to many of the readers of this magazine – so how to actually implement these large- scale infrastructures? Heat supply is intertwined with many other agendas I can name many good reasons why district heating could be an option for heat supply in the future. But
“the many actors out there” have to make the deci- sions: municipalities, citizens, energy companies, util- ities, industries with excess heat, etc. One question they all will ask is ”what’s in it for me?”. The answer can be many different things: cheap heat and clean air for the citizens, clean heat supply in the municipality, extra income for an excess heat supplier, jobs, and investments in the area. These reasons are multiple, context-dependent, and always up for ne- gotiation. Just look at how fast the discourse around fossil fuels, especially natural gas, has changed from last year to today: last year, the need for getting rid of fossil fuels was based on climate change, and today it is a question of security of supply. Suddenly heat sup- ply is a matter of national security, followed by new challenges and opportunities. Therefore, there is not just one good reason to build district heating systems: it depends on the many local conditions and actors. And the planner who wishes to implement district heating must consider and depart from these specific conditions. But the planner must also make the different ends meet because district heating is one single infrastructure, and there needs to be agreement about the use, investment, and ben- efits of district heating among the many users and producers. The district heating plan can create a shared understanding of a complicated topic How can these many different actors then agree on investing in a single large and collective system? The usual response by engineers and energy planners is to make a plan. A plan that forecasts future develop- ments, how the district heating system would op- erate under certain conditions, compares it to oth- er types of supply and highlights different benefits. These benefits will usually include the various rea- sons why a district heating system should be built: If the climate is a major driver, then CO2 emissions could be a good indicator. If energy poverty is in fo-
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instead, it is a vehicle to promote discussions around a framed topic. This can create engagement, focus, and trust. The plan will not magically materialize its conclusions in the real world, but it can develop common understandings and creative dia- logue.
cus, then heat prices and savings might be more important.
The plan allows the different actors to discuss and try to see themselves in this potential future and to argue about what they like and do not like. In this perspective, a plan is not “a traditional cookbook recipe for “how to make district heating”;
CONCLUSION
How to make a plan? And now to the 1000€ question: how to make a success- ful plan for district heating supply? In my research, I found three elements that are part of a good plan for district heating supply. The first two elements are recommenda- tions for the municipalities, utility companies, and local actors who deal with the specific implementation. The last recommendation is for state-level actors responsible for the regulatory framework that shapes heat planning activities. First, a plan depends upon the local context. It depends upon all the different local conditions that must be considered. Plans should highlight these considera- tions, show how different actors can be part of the plan, and highlight the specific elements that drive the pro- ject. They do not need to be specifically district heating plans, but district heating can be one potential supply among other types, such as individual heat pumps. This way, each municipality and local government will look into and explore which different options exist and which options make sense for their specific conditions. Second, the plan is a tool for dialogue. Use the plan to determine which actors can see themselves in the po- tential new heat supply and which cannot. Most will need to make compromises, and perhaps some – fos- sil fuel interests – will need to be excluded. The results
will be different from the first draft plan, but if there is agreement about the purpose, conditions, and targets, then most likely, the result will still be within a reasona- ble target. Third, transparency and agreement about the funda- mental parts of a plan are necessary. There must be agreement about calculation methods and assump- tions, price forecasts, and technology development. If no agreement has been reached, there is a risk that the whole process will discuss assumptions and not results. In Denmark, we have public authorities who publish technology price catalogs and energy price forecasts. They might not always be correct, but at least there is a common reference point. Last, it is essential to remember that the results of working with a plan are emergent from the process and not given beforehand. As Mick Jagger of the Rolling Stones famous- ly sang: “You can’t always get what you want - But if you try sometimes, well, you might find - You get what you need.” My advice is, therefore, to get out there and start planning and involving stakeholders. And do not be too afraid to make mistakes because they will come. But with the current challenges facing heat supply around Europe, we need to try to change how we provide heat for our homes..
Nis Bertelsen
Who will benefit from reading this article? Professionals working with new or expanding district heating systems. Whether they work on a state level making the right framework conditions or on the ground with implementation, this article provides a new look at the technical and economic plans and how they can bring different actors together. What will your findings do for DH? We urgently need to change our heat supply systems, and district heating is part of the solution. This article provides a new perspective on the district heating plan's purpose and how to think about the implementation process. The article is about the many different actors and their reasons who have to come together to invest in and build district heating systems. These many actors with different starting points have to work together and agree on how the district heating system should be built. Often a technical and economic plan is made, and this article discusses the role of this plan.
For further information please contact: Nis Bertelsen, nis.bertelsen@klimaraadet.dk
12 HOTCOOL no.6 2022
HELLO, HOW CAN WE SUPPORT YOUR CITY? DBDH is the Go-To-Platform for district energy. We cooperate with all DH stake holders and support cities in their quest for a sustainable city transformation.
Use our strengths to help your city. We are the link to: Achieving climate goals through fossil-free district energy Strategic energy planning Knowledge on district heating and cooling A wide network of experts Visiting green solutions in Denmark
We do not know everything about district heating, but we know who does :) Contact one of our team members. Our advice is free of charge.
Lars Hummelmose lh@dbdh.dk Contact for China and other Asian countries, North America, and the Middle East
Pia Zimmermann pz@dbdh.dk Contact for Eastern Europe, the Baltic States and CIS countries
Morten Jordt Duedahl md@dbdh.dk Contact for Western Europe
Hanne Kortegaard Støchkel HKS@dbdh.dk Sector integration and new heat sources
DBDH ACTIVITIES | HOT COOL EDITIONS | NEWSLETTER SUBSCRIPTION (FREE)
Member company profile:
Linking Power-to-X and district heating will boost the green transition
By Henrik Dalsgård, VP of District Energy, COWI and Maral Taghva, Senior Specialist in Power-to-X, COWI
The interconnection of Power-to-X produced hydrogen and district heating has the potential to be a key catalyst for the green transition. And therefore, district heating is vital for the success of the Danish Power-to-X strategy and can easily cover up to 20% of the Danish DH demand.
Denmark is one of the pioneers in developing energy-efficient concepts such as district heating, which uses waste or surplus energy from industries such as power plants and waste incin- eration facilities. But to promote the green transition, ener- gy-efficient strategies are not enough: We also need to cut car- bon dioxide emissions and eventually reach zero emissions. Power-to-X is expected to play a key role in our future energy production and solve two of the major challenges on our path to the end goal of the green transition. Power-to-X converts green power into carbon-neutral fuels, eventually replacing fossil fuels and cutting carbon dioxide emissions. They can be stored and utilized the same way as existing fuels. A wide range of benefits Power-to-X processes also produce considerable waste heat as a by-product, with up to 25 percent of the plant energy intake ending up as surplus heat. A 6 GW hydrogen production plant could meet around 20 percent of Denmark’s total district heat- ing demand.
electrolysis plants, which will create future jobs and revenues from the export of green technologies. Some of the studies conducted by COWI show that the estimated price of hydro- gen production could be reduced by five to ten percent if dis- trict heating was combined with electrolysis processes. This could encourage stakeholders to invest in establishing more hydrogen plants in countries with high heating demands, such as Denmark. The calculation is based on a simple estimation of the value of heat and the value of electricity. District heating delivered to district heating networks is sold to around 15–25 EUR/MWh, depending on the local heat network. The Danish regulation sets a sealing for the price of surplus heat of 37 EUR/MWh, based on a calculation of investment in the cheapest alterna- tive supplies (heat pump or biomass). The heat income compared to the value of electricity results in a financial "recovery" of approximately 50% of the wasted en- ergy when utilized as district heating. The income from selling the surplus heat goes straight to the bottom line as there is no additional OPEX. The investment in heat recovery is estimated to be insignificant compared to other PtX-investments. It can
Other than high energy efficiency, waste-heat recovery in- cludes many other benefits, including the competitiveness of
14 HOTCOOL no.6 2022
Photo: Lars Just
Copyright: COWI
The main objective we aim for is cost-effective technical solu- tions, including low-temperature waste-heat issues. Also, ex- penses for upgrading existing infrastructures, such as heat transmission and heat storage, must be identified and com- municated to stakeholders, and costs must be reasonable and attractive for investors. COWI constantly works on bringing the integrated district heating concept to the top of the agenda. For example, togeth- er with the Danish think tank Grøn Energi and district heating supplier TVIS, we have prepared the study “Power-to-X and District Heating” for Dansk Fjernvarme. This study shows how this concept contributes to improved finances, higher energy efficiency, and security to increase the power-to-X deployment speed in Denmark. With soaring energy prices and climate crisis, we should aim to recover waste energy as much as possible and encourage everyone, including the authorities, investors, and even end us- ers, to join this movement.
simultaneously reduce alternative cooling process costs if inte- grated from the beginning.
As with all other waste heat integration in District heating net- works, the realization and profitability of the recovery will, by the end of the day, come down to the temperatures and the demand in the network as well the alternative heat supply op- tions already in place. More cost-efficient hydrogen plants will also lead to cheaper production of carbon-neutral fuels and the establishment of more Power-to-X plants. Undoubtedly, ensuring sufficient car- bon-neutral fuels and providing efficient district heating solu- tions will contribute to better integration across sectors such as power generation, transportation, agriculture, etc. All these elements are essential for the more sustainable and cost-effi- cient energy solutions we imagine for the future. Besides energy-efficient solutions such as district heating, Denmark is also known for progressive technologies such as wind and solar power generation. We aim to bring them all together and create an energy-efficient masterpiece to inspire the entire world. The way forward COWI has worked on several design studies, reviews, and devel- opment projects. However, there are still many challenges ahead.
For further information please contact: Henrik Dalsgård, hda@cowi.com
15 www.dbdh.dk
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