HOT|COOL NO.1/2021 - "Fuel, Flexibility & Green Transition"

DE is crucial in reaching carbon neutrality – colleges are leading the way

Federal funds for transformative clean energy open the door for D.E.

The fact that low carbon DE is not high on the political agenda also has its advantages. Private actors mainly drive the DE sector without any fundamental limitations. The higher education campuses currently represent approximately 75 % of the market for Danish companies within DE. Ivy league campuses incl. Stanford University, Harvard University, M.I.T., Princeton University, and Dartmouth College lead the way with campus-wide steam to hot water DH conversions. This transition often includes replacing old fossil-fuelled steam boilers with geothermal heating and storage, heat pumps, biomass, C.H.P., Renewable Fuel Oil, and solar thermal DE production, to mention a few. Additionally, a rapidly growing number of state-owned universities and colleges are planning for and currently implementing DE. They work closely with the private sector

As mentioned, the renewed focus on climate change will, without doubt, boost the DE market in the U.S. Even though DE is not explicitly mentioned in any green transition relief packages or anymajor green energy transition announcements so far, the outlook for DE is still very positive. For example, a USD 100 million fund for transformative clean energy technology research and development was announced through the U.S. Department of Energy (DOE) on February 11th, 2021. With the right local partners for Danish companies and with suitable project applications, the fund through DOE could very well tie directly into supporting new DE systems and boost the industry in general. The first deadline for submitting applications to this fund is April 6th, 2021. More similar funds

to make that happen. Now, DDEA is connected to more than 30 educational campus projects in various stages, and that number is rapidly growing. More and more local utilities are also developing and implementing DE systems – either as new systems (heating and cooling) or as steam to hot water conversions (heating and cooling). We also see an increasing trend that big-scale national and international utilities and utility investors expand their market in the U.S. and Canada. They often acquire outdated steam and/or DE system on, e.g., an educational campus or a city. Within that deal, the utility would guarantee to transform the entire system so that the campus or city meets their carbon emission goals, energy efficiency goals, and climate action plans. The utilities would then operate and maintain the system for a certain amount of years, selling heating and cooling to the client. This market is growing rapidly as well. Danish companies are currently representing approximately 20 % of the market.

directly and/or indirectly tying into DE is likely to be announced under this current administration. DDEA is continuously monitoring that. Relaunching the Danish District Energy Alliance to boost the implementation of DE DDEA is also focusing on promoting DE implementation through different channels on state and city level and local DE industry associations and NGOs. DDEA estimates an export potential for Danish companies in the U.S. and Canada (mainly within DE production and distribution) totaling more than USD 1 billion over the next 5+ years. It is heavily supported by global financial export potential outlooks that estimate DE market potential in the U.S. alone of roughly USD 50 billion over the next 6-7 years. Currently, DDEA is committed to supporting Danish companies, and facilitating knowledge-sharing with the local DE industry to develop the growing market further. This is also the reason why the DDEA Alliance is relaunched later in 2021. It will increase focus on project scouting for Danish

ABOUT THE TRADE COUNCIL NORTH AMERICA (TCNA) AND THE AUTHOR Niels Vilstrup is working at The Embassy of Denmark in Washington D.C. as part of The Trade Council North America (TCNA). He is head of TCNA dis- trict energy (DE) efforts in the USA and Canada through the DanishDistrict EnergyAdvisory (DDEA). Currently,DDEAiscommittedto supporting Danish companies, and facilitating knowledge- sharing with the local DE in- dustry to develop the growing market further.

Lastly, more and more cities are becoming aware that DE is crucial in becoming carbon neutral, reducing GHG emissions, and reducing air pollution. They want to integratemore renewable energy production and intelligent energy infrastructures in their cities. D.D.A. is currently working with several cities in the U.S. and Canada that have seen the potential of DE systems. This market is also growing for Danish companies, now representing approximately 5%of themarket.

companies, financing opportunities, project development, partnerships, lead generation, and knowledge-sharing locally. We cannot wait to welcome your company on-board DDEA in 2021.

For further information please contact: Niels Vilstrup,

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