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Veolia and Innargi join forces in geothermal project for Łódź, Poland

Veolia and Innargi join forces in geothermal project for Łódź, Poland

News • October 30, 2024

Press release • October 30, 2024

Veolia Energia Polska, Veolia Energia Łódź, Innargi and the City of Łódź have signed a letter of intent aiming to launch a joint project regarding the exploration and use of geothermal resources in Łódź. The geothermal project can supply renewable energy to the Łódź district heating system, contribute to its decarbonisation, the green transition of Łódź and increase the city’s energy independence. The parties envisage a long-term partnership that should result in the supply of approximately 200 MW of geothermal energy.

Veolia Energia Polska and Veolia Energia Łódź have entered into a strategic partnership with Innargi and the City of Łódź to help develop geothermal energy in Łódź. The purpose of the project is to supply geothermal heat to the district heating network managed by Veolia Energia Łódź. The project is one of the elements of the decarbonisation of the Łódź district heating system and improvement of energy efficiency through renewable energy sources. This approach is consistent with Veolia’s energy transition strategy. The parties envisage a partnership that could result in the supply of approximately 200 MW of geothermal energy.

Europe still has untapped geothermal heating potential. The main obstacles are significant investment costs and geological conditions. An innovative approach by the Danish company Innargi may change the situation. Innargi, a leader in the geothermal sector, is currently working in Denmark on the largest geothermal heating plant project in the European Union. The company has introduced a new business model that treats geothermal energy as a service. This concept ensures that Veolia does not have to bear the high investment costs associated with geological surveys, infrastructure construction and exploitation of the deposit.

This solution can open a new chapter for district heating, and make geothermal a more accessible and attractive alternative to district heating networks. Innargi’s model reduces financial and operational risks and at the same time allows users to enjoy a clean, renewable energy source.

A letter of intent concerning partnership in a geothermal project was signed by the parties today during the Łódź Geothermal Conference.

“Our goal is to provide residents with clean, stable heat that is resilient to the volatility of energy markets. Veolia continuously strives to introduce green solutions and the geothermal project is a proof of our commitment to an efficient energy transition and aligns very well with our global GreenUp strategy. Geothermal is another project we want to carry out with the City of Łódź in the area of district heating and the environmental challenges facing both the energy industry and local governments.”

Luiz Hanania

CEO of the Veolia Group in Poland and President of the Management Board

A new era of sustainable energy in Łódź

Veolia Energia Łódź, a manufacturer of district heat and electricity, is responsible for supplying heat to the majority of households in Łódź as well as key public facilities and industrial plants. The geothermal project is part of the company’s long-term strategy, aimed at decarbonisation through, for example, the development of renewable and cost-competitive energy sources. Geothermal energy is not dependent on weather conditions and in the future may become an important pillar of the Łódź district heating system.

“Veolia considers the development of sustainable energy solutions a priority. The addition of geothermal energy to our fuel mix is another milestone in our green transition strategy. The partnership with Innargi and the City of Łódź allows us to introduce the renewable heat source into a wide range of decarbonisation projects within the Łódź district heating system.”

Anna Kędziora-Szwagrzak

President of the Management Board of Veolia Energii Łódź

One-Stop-Shop service and responsibility of Innargi

Innargi, a developer and operator of geothermal heat plants, brings its experience in implementing geothermal projects in a ‘one-stop-shop’ model. The company offers full support at every stage of the project – from the search for geothermal resources to the construction of plants and their operation. This means that Veolia Energia Łódź and its customers can rely on a stable supply of environmentally friendly heat that is highly energy efficient.

“Geothermal energy is the future of sustainable cities. We are happy to support Łódź in achieving its ambitious energy goals by providing solutions that help to reduce CO2 emissions and increase energy efficiency. There are many advantages of geothermal heating, but its use in European district heating systems has so far remained limited due to financial and geological barriers. We see Łódź as a key location on the geothermal investment map. I am sure that our offered business model makes it possible to introduce geothermal into the transformation process of Veolia’s district heating systems.”

Samir Abboud

CEO of Innargi

Sustainability and a long-term partnership

The geothermal project in Łódź is not only an investment in a clean energy source, but also an opportunity for an important step towards the city’s climate neutrality. The construction of geothermal plants may become an example for other cities in Poland and other parts of the world, and show how a green transition of the heating sector can be carried out effectively.

“For years, Łódź has been investing in innovative and environmentally friendly solutions that improve the quality of life of the residents. Veolia, which manages the city’s key district heating infrastructure, is our important partner in achieving our climate goals and co-creating a sustainable city. The partnership with Veolia and Innargi on the geothermal project is another step towards increasing our energy potential in an environmentally friendly way.”

Hanna Zdanowska

Mayor of Łódź

The City of Łódź, realising the importance of the project for the local community, has declared its full support and partnership in terms of research. Thanks to the partnership between Veolia, Innargi and the City of Łódź, the geothermal project is set to become an important step towards a green future of Łódź, and contribute to increased energy security and the development of environmentally friendly heating solutions.

ABOUT THE PARTNERS IN THE PROJECT

VEOLIA’S AMBITION is to become a benchmark company for environmental transition. The Group has nearly 218,000 employees on five continents and designs as well as implements useful, practical water, waste and energy management solutions that help fundamentally change the world. Veolia contributes to the improvement of access to natural resources, their conservation and restoration thanks to its three complementary activities. In 2023, the Veolia Group provided drinking water for 113 million people, provided 103 million people with sewerage services, produced 42 TWh of energy and processed 63 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved a consolidated revenue of EUR 45.3 billion in 2023.

ABOUT VEOLIA IN POLAND Veolia has been a reliable partner of industry and Polish cities in the process of green transition for over 25 years. The company draws on its knowledge and international experience to offer innovative environmental services and solutions based on unlocking synergies and maximising the benefits of the circular economy. It operates in three sectors – energy, water and waste – and deals with, for example, the production and supply of heat, the provision of district heating services to some 3 million customers, the marketing and sale of energy, as well as the transmission and treatment of water. It continuously invests in the expansion and improvement of its infrastructure and develops modern services related, for example, to the improvement of energy efficiency and Total Waste Management to contribute to the sustainable development of the whole country.

In Poland, Veolia employs more than 4,600 employees dedicated to ‘Renewing the World’s Resources’. It operates in 123 towns and manages district heating networks in 58 cities. The company acts through operating companies: Veolia Energia Polska (holding), Veolia Energia Warsaw, Veolia Energia Łódź, Veolia Energia Poznań, Veolia term, Veolia Energy Contracting Poland, Veolia Industry Polska, Veolia EKOZEC, Przedsiębiorstwo Wodociągów i Kanalizacji in Tarnowskie Góry (Water and Sewage Company in Tarnowskie Góry) and their subsidiaries.

VEOLIA ENERGIA ŁÓDŹ is one of the largest energy companies in Poland focusing on producing district heat and electricity in cogeneration and managing the district heating network. Veolia Energia Łódź continues the history of the Łódź energy industry, which spans over 115 years, as a renowned partner of the city and a contributor to the development of its infrastructure. The company follows the group’s sustainable development policy by creating and implementing innovative energy-efficient solutions that are optimal for the environment and local communities. Veolia Energia Łódź is aware of the environmental challenges faced by the energy sector and implements the strategy of decarbonisation of the Łódź district heating system through green transition.

Veolia supplies district heating to around 60% of recipients in Łódź. It supplies heat to the largest buildings in the city, including industrial plants, public buildings, shopping and service centres. It also supplies system heat from the Łódź system to Konstantynów Łódzki.

INNARGI A/S has the mission to decarbonise heat by bringing 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 and cities. Innargi A/S was founded in 2017 by A.P. Moller Holding A/S (Denmark’s largest company best known for the Maersk brand) and is today owned by A.P. Moller Holding, ATP (Denmark’s largest pension fund), NRGI (Danish consumer-owned utility company) and Sampension (large Danish customer-owned pension fund).

Further Information

VEOLIA ENERGIA POLSKA
Natalia Rybarczyk, dyrektor komunikacji korporacyjnej
Tel.: .+ 48 667 626 185
natalia.rybarczyk@veolia.com

VEOLIA ENERGIA ŁÓDŻ
Robert Warchoł, dyrektor komunikacji
Tel.: .+ 48 667 620 622
robert.warchol@veolia.com

Innargi A/S
Sofie Biering Krogh, Communication Specialist
Mobile: +45 42 91 41 88
Sofie.biering@innargi.com