New framework agreement lays the foundation for geothermal energy in metropolitan Copenhagen
Pressemitteilung • Oktober 25, 2022
Amidst a troublesome European energy crisis where many countries and players are forced to return to fossil fuels, there are some good news about renewable energy from Denmark. The district heating companies in the Copenhagen metropolitan area have come to an agreement with the company Innargi about a framework for a possible breakthrough for geothermal energy in our metropolis. The potential in this area corresponds to the consumption of somewhere between 35,000 to 75,000 households.
A detailed plan with a timeframe as well as possible locations for the plants could be ready in about a year. If a final agreement can be made, and if everything goes as hoped, we expect the first of several geothermal plants to be ready for district heating in metropolitan Copenhagen in 2026 at a competitive price.
Part of a multistranded strategy
In short, Innargi will get the hot water out of the ground while the companies VEKS, CTR, and HOFOR will buy the heat from the water and send it out through the district heating network. To begin with, the parties involved have signed a letter of intent which describes the intention to work actively and purposefully towards establishing geothermal energy in metropolitan Copenhagen. The future of district heating is based on a multistranded strategy where several different green energy sources work in conjunction with each other, and geothermal energy could be an important part of such a system.
Great with local energy
Aarhus led the way, and together with Innargi, which is owned by A.P. Moller, ATP, and NRGI, they are planning to build a plant that can produce 110 MW corresponding to the heating of 36,000 households. Now, the capital area is following in their footsteps. Initially, a potential of 120 to 240 MW is expected, which can cover the yearly heating of 35, to 75,000 households.
“It is great that we have closed on the first phase. If we agree to establish a geothermal energy plant in VEKS’ area of supply, there is good reason to be satisfied. In a time where supply safety and stable energy prices are of the highest priority for VEKS, it is important that we can connect another green energy source to the district heating network. That it is a local energy source which is available 24/7/365 only makes utilizing geothermal energy that much more interesting.”
On the way to a 100-pct. green district heating network
“We hope that we are moving towards a breakthrough for geothermal energy in the Copenhagen metropolitan area. It is definitely needed. The entire concept behind geothermal energy is just so obviously right. For a long time, we have worked to make this green energy source gain some momentum, and it has been one bumpy ride. The partnership with Innargi adds new competence, and it is a good step in the right direction. If it succeeds, we are fully on the way to a 100-pct. green district heating network in metropolitan Copenhagen. Although, it does depend on if we can get the necessary space.”
In HOFOR, the chairman of the board remarks, among other things, upon the timing:
“The current European energy crisis triggered by the invasion of Ukraine has shown us that the European energy sector is more vulnerable than we thought. Luckily, the district heating network in 2 metropolitan Copenhagen has shown itself to be more robust. However, we still need to tug on many different green strands in the future, and this is where geothermal energy can be a vital element.”
About the parties involved
CTR is a supplier of sustainable and connected heating in the metropolitan Copenhagen area – across the municipalities of Frederiksberg, Gentofte, Gladsaxe, Copenhagen, and Tårnby. CTR has a yearly turnover of almost 2.5 billion DKK. and has about 35 employees. Through the distributional companies, CTR supplies about 250,000 households with district heating in metropolitan Copenhagen.
VEKS supplies surplus heat from big, central power and waste-to-energy plants to 20 local district heating companies corresponding to the consumption of 170,000 families. Additionally, VEKS is expanding district heating in Køge to 7000 new customers.
HOFOR is Denmark’s biggest local supplier of water, heating, city gas, remote cooling, and wastewater diversion for more than 1 million people in metropolitan Copenhagen. They also build windmills and solar farms which supply energy to a greener Denmark. Together with eight municipalities, HOFOR is creating sustainable cities with a focus on rainstorm projects, energy optimization, and developing the future of supply solutions. HOFOR has over 150 years of experience, 1400 employees, and a turnover of 5 billion DKK.
Innargi A/S was founded in 2017 by A.P. Moller holding A/S and is today owned by A.P. Moller Holding, ATP and NRGI. Innargi’s mission is to bring geothermal heating to millions of homes with expert knowledge from an experienced team of geologists, reservoir-, facility-, and drilling engineers as well as through partnerships with district heating companies.