Annual report

2013

Annual report 2013

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Preface

HOT|COOL

CASE: Optimal operation: from production to customer

Members’ meetings

Visits to Denmark

CASE: District heating considerations

DBDH in Russia

A new DBDH and a new organisation

DBDH in China and Mongolia

Energy policy conference at Christiansborg

Annual meeting

General assembly

New members

CASE: Utilizing waste heat in the city

District heating in numbers

Export in numbers

DBDH members

DBDH Board of directors and Secretariat

FOR MORE THAN 30 YEARS, RAMBOLL HAS HELPED CITIES AROUND THE WORLD EFFECTIVELY UTILIZE ALL AVAILABLE HEAT SOURCES BY INTRODUCING DISTRICT ENERGY INTO THEIR ENERGY SYSTEMS.

A LIVEABLE CITY WITH A WARM HEART(THANKS TO A WORLD CLASS DISTRICT HEATING SYSTEM)Follow the Copenhagen example at www.ramboll.com/cph-heating

PREFACE

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By Lars Gullev, Chairman DBDH

DBDH annual report 2013

Again in 2013, energy was an area that attracted a lot of atten-

tion and focus

DBDH was one of the main forces behind a new report regarding

the future expectations of the Danish district energy industry’s job

creation and exports. The report was very optimistic and positive:

The industry expects to create 39 % more jobs in 2020 compared

to 2011 and to triple its exports of district energy technology to

15 billion DKK in 2020. The expectations to especially the markets

in Russia and China are positive, and more than 50 % of the export

of Danish district energy technology will go to these two countries

in 2020.

Also district cooling was a subject that caused an, at times, heated

discussion. DBDH has been lobbying hard in 2013 to get more

district cooling projects in Denmark. The projects are needed in

order to get more innovation and development of concepts. Without

them, Denmark will miss out on sufficient knowhow and there will

be no district cooling showcases for the many international guests

that visit each year. The reason for the missing district cooling

projects is the regulation of district cooling in Denmark. Therefore,

DBDH has worked hard to get the regulation of district cooling in

alignment with the regulation of district heating. Several meetings

have been held with the Danish Energy Authority about the problem

and it was also on the agenda at DBDH’s annual meeting together

with FIF Marketing at Christiansborg in March 2013.

In the autumn of 2013, the government published its growth plan

for energy and climate with the focus on the global energy demand,

which has increased the awareness both at home and globally

on the need for a green conversion. A number of countries, such

as Denmark, have initiated the transformation of their energy

systems, and as more and more countries are investing in renewable

energy and energy efficiency, the demand has increased for Danish

companies’ competences in this field. Denmark has professional

skills within renewable energy, and district heating and energy

efficiency is an important part of this transition.

Backloading was also an important item on the energy agenda

in 2013. The European Commission has been taking action to

address the surplus of emission allowances that has built up in the

EU emissions trading system (EU ETS), largely as a result of the

economic crisis. In April, the European Parliament voted against

Climate Commissioner Connie Hedegaard´s backloading proposal.

This was an unfortunate development as it could mean a loss worth

billions in exports of Danish energy technologies and also the loss

of thousands of Danish jobs. However, the beginning of 2014 saw

a closure to the discussion about the issue, when in early January

the EU Climate committee adopted the final action plan for the

implementation of backloading, which made Connie Hedegaard’s

backloading plan a reality.

For DBDH, 2013 was a year in which many new initiatives were taken

and new concepts introduced.

As a result of the new strategic cooperation between DBDH

and FIF Marketing - “Fjernvarmeindustrien”, DBDH changed look

as well as content. The purpose of this new cooperation is to

unify and strengthen the Danish district heating industry. The

strategic cooperation will work for its members’ political interests

and support political, commercial and export interests - but also

ensure the visibility and growth of the district heating industry

both nationally and internationally. Another important reason for

the cooperation is the desire to increase the sharing of knowledge

through various activities.

Also in line with the new strategy, DBDH initiated 9 focus groups

among our members in 2013. The aim of the focus groups is to

give our member companies even more influence on the work and

activities of DBDH, and it is a tool to involve the many resources

of our member companies more actively.

A record 12 new companies became members in 2013. We are

pleased to have them amongst us and look forward to yet another

active year with new and old members alike.

P5dbdh.dk

HOT|COOL DBDH produces and distributes the English-language magazine Hot Cool. The magazine is issued four times a year.

The main purpose of the magazine is to create and maintain people’s

awareness of Denmark’s leading position in CHP technology and

district heating and cooling technology. The magazine focuses

especially on the professional competence of the member

companies.

The magazine deals with district heating and district cooling in all

aspects. Each number contains 8-9 articles of a high professional

quality. The articles are written by the sector’s experts and focus on

themes such as energy planning, design, finance, operation, energy

savings, research and development as well as the environmental

results of a district energy sector which encourage the use of

CO2-neutral energy efficient resources. The magazine is issued to

more than 7,000 recipients in more than 50 countries all over the

world. Copies are also distributed in connection with export drives,

exhibitions and at foreign delegation visits to Denmark.

In 2013, the themes of the four issues of Hot Cool were: District

cooling with articles by Ramboll, COWI, LOGSTOR, HOFOR and

Danfoss, District heating in Germany with articles by Kamstrup,

LOGSTOR and Danfoss, Smart energy – new solutions with articles

by Arcon Solar, Grontmij, Ross Engineering, Ramboll and Grundfos,

and Financing with articles by four funding organisations NEFCO

(Nordic Environment Finance Corporation), NIB (Nordic Investment

Bank), EKF and IFU (Investment Fund for Developing Countries).

The theme takes up half of the articles in each number and

offers the reader a possibility of having a certain topic or aspect

illustrated from different angles. In addition to these theme articles,

the magazine features recurrent pieces such as “The column”,

written by either the Chairman or the Managing Director, who

explores a topicality in the sector, as well as the two-page interview

piece “DBDH member company profile”, which gives a description of

the specific company as well as an outline of its current situation

and interests. In 2013, the featured member companies were

pipe manufacturer Isoplus Denmark, manufacturer of pumps

DESMI, software company Saseco, and geothermal company Ross

Engineering, all of which were paid a visit by DBDH in order to have

an up-to-date talk about present topics and cases, challenges,

opportunities, and future markets as viewed by the company.

Last but not least the magazine boasts a significant amount of

various articles covering different topics. In 2013 some of the topics

were: Maabjerg Bioenergy Plant; Leakage protection systems from

pipe installations; Waste incineration; Optimisation of operations;

Solar heating; Heat Roadmap Europe; as well as EU regulations.

DBDH attracts new members on a regular basis, and these are

presented to the readers and the energy sector in the last part

of the magazine. We also have the section “Latest news”, where

we offer a brief account of current topics, such as e.g. a new

cooperative agreement between DBDH and the Chinese district

heating association, and a MOU (memorandum of understanding)

with the Centre for Energy Saving of Yugra.

Please go to www.dbdh.dk if you want to sign up as a recipient of

Hot Cool free of charge.

DBDH annual report 2013P6

Optimal operation:from production to customer

By Hans Bjørn, Managing Director, TVIS – Trekantområdets Varmetransmissionsselskab I/S (Triangle Area HeatingTransmission Company) and Thomas Østergaard, Chief Project and Market Manager, COWICASE

The requirements for efficiency and optimization of Denmark’s en-

ergy supply and consumption are ever increasing. Within the Energy

Strategy 2050 the Danish Government has set new targets for en-

ergy and carbon savings, and is also restructuring excise taxes. The

future will also bring the development of new energy technologies,

which district heating will have to compete against over the long

term. This naturally leads to increased demands on existing supply

systems, which need to evolve and improve.

TVIS owns, operates and maintains the heat transmission network

and the associated substations that transport heat from the

CHP-plant Skærbækværket, Shell Refinery and the Triangle Area

Waste Company (TAS) to the district heating companies in four

municipalities. TVIS’ primary tasks are to buy heat (including local

peak and reserve production) and to distribute it to the connected

district heating networks. Therefore, TVIS’ business relies on the

ability to buy heat cheaply and to transport it as efficiently as pos-

sible. Similarly, it is vital to ensure high security of supply in both

the short and long term.

TVIS is currently working towards two goals:

• To lower the return temperature as much as possible and achieve

greater cooling of the district heating water. In this way, the

capacity of the network is increased; maximum heat from Shell

Refinery is exploited, which supplies the base load to the system;

and the unit heat price from the CHP plant will be minimized.

• To reduce heat loss from both transmission and distribution

networks.

The aim is to improve the overall efficiency, which will benefit both

individual users and communities. This article focuses on the ef-

ficiency improvements made in 2011-12.

PRODUCTION OPTIMIZATION

In recent years, TVIS has purchased Termis Operation, which has

been used to produce a static model of the entire transmission

network. The Termis model is coupled with a new SCADA system, to

give better visibility of data across the entire transmission network.

This has given the operations staff a detailed real-time picture of

the network and facilitates quick identification of any critical con-

ditions, and ongoing optimization of the various production units.

The latest step in this evolution was implemented in 2010: PRESS

Prognosis and PRESS forecast with daily weather forecasts were

installed and connected to all district heating stations in the area.

Therefore the optimization module now includes not just TVIS’ own

facilities, but also the individual distribution networks and production

facilities from Vejle in the north to Kolding in the south.

Each day the system produces a common forecast for all the as-

sociated plants, which provides the basis for a daily production plan.

The production plan gives TVIS’ operational management predicted

levels of base and peak-load and minimum flow temperature for

the next few days.

Within certain limits, if there is a lower temperature requirement

for district heating, the CHP plant can be configured to provide

a higher electricity production. This consequently means a lower

heat production cost. Lower temperatures in the district heating

network also mean less heat loss to the surroundings. It is there-

fore beneficial to reduce the flow temperature as low as possible

to provide the heat demand of the consumers.

The lowest possible flow temperature is calculated continuously by

the optimization program and is an important part of the ongoing

production optimization. Once a week during the heating season, the

operational management at TVIS uses the production forecasts to

decide on the flow temperature for the coming period.

The data is also available to all the associated district heating com-

panies. Those companies that use a temperature optimizer can use

the data in a similar way to optimize their own systems.

All parties benefit from the operation of the transmission system

with lower temperatures, including the customers who have reduced

heat losses and lower heating costs.

PRELIMINARY RESULTS

The following graphs illustrate the differences in the flow tempera-

tures in winter 2010-11 and 2011-12 respectively. Also shown are the

recorded outdoor temperatures for the same period.

dbdh.dk P7

By Hans Bjørn, Managing Director, TVIS – Trekantområdets Varmetransmissionsselskab I/S (Triangle Area HeatingTransmission Company) and Thomas Østergaard, Chief Project and Market Manager, COWI

SURPLUS HEATFROM REFINERY

COMBINEDHEAT ANDPOWER

WASTEINCINERATION

HEAT ONLYBOILERS

Fig. Graphical view of the operation before and after the com-

missioning of the new forecasting system. The red curve shows

the variation of the outdoor temperatures (oC), while the two grey

curves show the flow temperatures (almost equal) towards Kolding

and Vejle.

Figure 1 clearly shows that the flow temperature during the winter

2011-12 has been steadier and generally lower than during the same

period in the previous year. Even during the coldest period, where

the temperature in both years drops to around -10 °C, the flow

temperature in 2011-12 was significantly lower than the year before.

For the operational management there is no doubt that the new

system has achieved a significantly better basis on which to de-

termine the optimal flow temperature than has been the case in

previous years.

Many individual heating companies connected to the TVIS transmis-

sion network have also installed Termis to help optimize flow tem-

peratures. This is often combined with a drive to identify local areas

or buildings returning water to the network at high temperatures.

Together, these programmes have led to both lower flow and return

temperatures for the district heating companies and throughout

TVIS’ transmission system. As a result of the lower return tem-

peratures, TVIS has been able to utilize more of the excess heat

from Shell Refinery.

A conservative estimate indicates that TVIS’ expenditure on fuel

has been reduced by approx. 3.3 million DKK (440,000 EUR) annually

after the new system was put into operation in 2011.

The overall investment in Termis TO, including the purchase of

software mentioned above and its implementation by COWI, was

approximately 1.5 million DKK (200,000 EUR).

TVIS: A MULTICITY COOPERATION

Kolding, Fredericia, Middelfart and Vejle municipalities jointly own

TVIS. The company was formed in 1982 to curb the impacts of the

1970s energy crises and is still of significant importance in the drive

to reduce energy use and reliance on fossil fuels.

When the company started in 1982, 55,000 residential units were

connected. This has risen to more than 80,000 residential units and

also a wide range of companies and institutions.

Heat is supplied to the TVIS network from three major sources: The

Shell Refinery in Fredericia supplies heat that would otherwise go

to waste; the TAS waste-to-energy plant operates as a CHP; and

the Skærbæk gas-fired power station also provides heat via CHP

operation. The network is soon to become even more sustainable

when the gas-fired plant is converted to biofuel.

Overview of the TVIS plant and the local district heating stations

in the four municipalities.

Breakdown of energy inputs to TVIS.

Vejle

Fredericia

Middelfart

Kolding

P8 DBDH annual report 2013

JANUARY

Members’ meetings

The first members’ meeting in 2013 was held at Gl. Avernæs in

Helnæs, Funen, on January the 10th. The theme this time was

DISTRICT HEATING IN THE EU IN INTERACTION WITH FUTURE

ENERGY PLANNING.

First item on the agenda was the presentation of DBDH’s new

strategy by Chairman Hans Bjørn. A lot of interesting things take

place in the energy sector these years, and this of course also

affects DBDH and the strategy of the organisation. Hans Bjørn

talked about this in front of an interested member audience.

Sabine Froning, at that time CEO of Euroheat & Power, initiated the

theme of the meeting and spoke about the content and prospects

for Heat Roadmap Europe 2050, which is also supported by DBDH

financially. Heat Roadmap Europe is considered an important tool in

the dialogue with European politicians about district heating. Sabine

also offered an interesting insight into what Euroheat & Power saw

as their main task in the coming period, including the prospects for

district heating in the EU in relation to the new directive and the

future work of the EU and the Member States.

Ulrich Bang, EU Director in Dansk Energi, works on a daily basis

with political decision-making in Brussels and the EU countries,

and Ulrich described how a lobbyist is working and what contacts

he operates with.

In the lead in implementing Copenhagen’s new climate plan, KBH

2025, is Project Director Jørgen Abildgaard, who now has 12 years

to solve the task in close cooperation with companies, authorities

and research institutions. Jørgen Abildgaard talked about the

visions for KBH 2025, and what the plan contains concretely. What

are the overall goals of KBH 2025, and what effect does this have

on district heating in Copenhagen? What are the plans for the

implementation and how does the economy look?

The rest of the day’s programme included networking and members’

dinner.

P9dbdh.dk

JUNE

Thursday the 6th of June, DBDH hosted a members’ meeting with

special focus on the GERMAN MARKET FOR DISTRICT HEATING -

this time in the sunny hills of Rebild, Jutland.

The German energy market is facing major changes – green

changes. Under the very ambitious plan “Energiwende”, a number of

objectives has been set for the development of a greener energy

sector. Greenhouse gases are to be reduced by 55% in 2030, and

finally 80% in 2055. Renewable energy should have a 30% share of

the final gross energy consumption in 2030 and up to 50% of the

electricity consumption. With the final phase-out of nuclear power

in 2022, new energy solutions are needed, and this is where the

flexibility, energy efficiency and sustainability of district heating

solutions become interesting.

The day began with a company visit to ARCON SOLAR in Skørping.

As the world’s leading producer of large-scale solar systems

solutions, and with more than 35 years on the market, ARCON has

great experience in providing profitable and green energy solutions

to district heating companies. The members got a chance to the

see the hightech production line, while director Søren Elisiussen

explained the steps taken to optimize performance and avoid

energy waste.

The first speaker was Stephan Orita from AGFW (the national

German organization for district heating). Stephan guided the

members through the objectives of the “Energiwende” and the

position and possibilities for district heating on the German market.

Being rather sceptical about the connection between the goals of

the politicians and reality, he still saw a great potential for district

heating and CHP. Most important for the development is the political

power supporting district heating and the will to create projects

big enough to attract the necessary investments.

Dennis Holte Albertsen from the Danish Embassy in Germany

presented an important lesson from his experience with

Danish companies entering the German market with the words:

“Go together, Germany is big”. Even big actors on the Danish

market easily become small in the German competition, thus by

collaborating, it gets more interesting for the German contractors

to get involved with foreign companies.

The other German speaker of the day was Arne Jan Hinz from the

local Stadtwerke in Schwäbisch Hall. With great passion for the

local initiatives, he presented how district heating works on the

ground level in a smaller German city. His focus was on the needs

and expectations from a locally owned energy community, which will

often be a typical customer for a district heating system.

Claus Bruun, Ececutive Vice President from LOGSTOR, was the

final speaker of the day. He has many years of experience with

the German market and he offered some concrete advice on how

to enter the market and provided also a guide on dos and don’ts.

As the location of the meeting was Rold Skov (Rold Forest) which

is renowned for its “robbers from the forest”, a walk in the forest

was part of the day and included a surprise meeting with, indeed,

robbers from Rold.

As always, the meeting ended with dinner and networking, both

of which are considered a very important part of the members’

meetings by members of DBDH, as it offers a great opportunity to

create new contacts and to learn what is going on in the business.

P10 DBDH annual report 2013

Visits to Denmark

In 2013, many delegations from worldwide found their way to Denmark and DBDH to experience the best of Danish district heat-ing knowledge and technology. In DBDH, we have enjoyed hosting all of these delegations and visits. Below, we wish to share a few impressions with you in text and picture:

Supported by a World Bank project, the Chinese Ministry of Housing and Urban-Rural Development had a delegation in Denmark in late February. The delegation was headed by MoHURD and consisted of high-level officials from local branches of MoHURD, responsible for heating supply and building energy efficiency. The purpose of the study tour was to learn about Danish experience in district heating, for example, building-level substation technology and its development model and policies, heat metering, sustainable urban planning and building energy efficiency, etc. Mr. Lars Gullev, Chairman of DBDH, held a presentation during the Sino-Denmark seminar.

In February, DBDH arranged interviews on behalf of Arthur D. Little, a management consulting company from Japan. The company did a benchmark study for the Japanese Ministry of Economy on policies and laws related to district heating in European countries.

Also in February, DBDH received a Russian delegation from Stavropol Krai, wanting to learn more about Danish heat and energy supply. Why? Because a project initiated by the Russian Federal Government included the building of a new city by the Caspian Sea to inhabit 300,000 people. In this respect, they were interested to know more about Danish solutions for heating and cooling of a city.Later in February, a group of Russian journalists representing federal papers came for a full week visit to Denmark to experience solutions in the field of energy, climate, adaptation and environment. The tour programme included visits to many of DBDH member companies as well as Avedøre Power Station, City of Copenhagen, Energinet.dk, Project Zero.

In May, a large high-level delegation with representatives from Government of Sakha Republic (Yakutia) and Samara Oblast, Russia, with interest of energy efficiency in district heating stopped by. The delegation from Yakutia invited DBDH to include Sakha Republic in the DBDH district heating sector visit in the near future, as this sector is undergoing many new developments and want to cooper-ate with the Danish district heating sector.

Still May - but this time a visit from Korea. Korea District Heating Company, which has one of the largest district heating networks in the world, paid a visit to Denmark. The purpose of the visit was to gather inspiration for further development of their network and to strengthen their network with Danish companies, organizations and research institutes.

One more, a Russian delegation came by in May. In cooperation with Nordic Council of Ministers, DBDH arranged a “district heating visit” in Denmark for a delegation of representatives from Kaliningrad. The delegation was given an introduction to DBDH and the Copenhagen Transmission system, and on top of this, a visit to Elsinore Utility, where the delegation had a tour at the gas-fired CHP plant, and the wood-fired boiler plant. The visit was interesting as Elsinore is in the process of expanding the district heating system in Elsinore Municipality.

P11dbdh.dk

Continues next page >

Also yet another Korean delegation stopped by: On the last day of May, a delegation led by Korea Energy Management Corporation with the participation of several larger Korean district heating companies visited Denmark. They were interested in learning about the newest concepts and technologies within district heating in Denmark and also in learning about how to regulate an efficient district energy market. The Danish Energy Authority arranged the visit. The program included presentations from DBDH, VEKS, Ramboll and Danfoss, and site visits to Vestforbrænding (waste incineration and district heating system).

In June, a delegation headed by Mr. Vasilij Polivanov, Russian National Heating Association, visited DBDH and learned more about DBDH activities in Russia, as well as the DH system in Denmark, with focus on tariffs, types of ownership of heating lines etc. The visit also included an introduction to the cooling system hosted by HOFOR in Copenhagen.

Together with Invest in Denmark, in August DBDH arranged a visit to Denmark for a Chinese software company, which was looking into a potential joint venture with a Danish company, to sell their products on the Chinese market. The potential joint venture is a result of DBDH’s export promotion tour in June.

In September, a high-level delegation from Mongolia headed by Deputy Minister Dorjpurev Dulamsuren, Ministry of Energy, visited Denmark, and DBDH gave a presentation during their visit at CTR. Later in September, the City of Burlington’s Executive Director of Corporate Initiatives, Allan Magi, visited Denmark and had meetings with DBDH, HOFOR and COWI. Allan Magi was interested in learning more about district energy, distributed renewables, clean energy supply and efficient policy and practice.

In October, a Dutch delegation consisting of 30 young officials from a network called “Youg Gelderland” in the Gelderland province visited Denmark. They were in Denmark to learn about how a (regional) government can facilitate the expansion of a green energy system. DBDH had a presentation together with CTR.

On November 25th, 2013, a delegation from the Southeast Europe (SEE) region of Europe visited the DBDH premises. Members and associated partners of DBDH were invited to the seminar with the objective to meet the Ambassadors and the Trade Advisors from the Danish Embassies of Turkey, Greece, Israel, Romania and Cyprus. The SEE region consists of approximately 120 million people, and represents several business opportunities to Danish companies distributed over several sectors such as the district heating sec-tor, the energy sector and the infrastructure sector. The region is also witnessing complex political and economic challenges, which should be managed carefully, both during the market entry period, however also subsequent to the establishment of local companies due to its different business etiquettes, higher importance given to social networks etc.

In this context, DBDH had the pleasure of welcoming members and other companies of interest to this sector seminar. Following a brief market presentation from each of the Ambassadors, a networking session was arranged, facilitating the Danish companies to meet and discuss specific topics, markets and technologies with the Ambassadors and Trade Advisors from the region.

In December, and to conclude the string of visits, DBDH received a high-level delegation from the Russian energy sector in coop-eration with Fortum and the Consulate General in St. Petersburg. The participants counted the director of Russia’s largest energy company KES -Holding, the Nordic region’s international energy company Fortum, officials from Russian ministries, and representa-tives from the Russian district heating industry. The delegation also visited the Ministry for Climate, Energy and Building as well as DEA to be inspired by the Danish legislation.

P12 DBDH annual report 2013

CASE

District heating considerationsDistrict heating can be produced from different fuels.

Some methods are more efficient than others. If you strive

for the highest level of CHP, there are some important

considerations to make.

Denmark is known for a high degree of combined heat and power production (CHP). This has been achieved by utilizing different technologies and fuels over decades of this development. There is no doubt that some parts of this investment have not fulfilled the expectations. However, most of the achievement is today securing reliable and cheap heat for private households and companies.

It is our hope that we can promote this development to other countries. There is no need to use resources to reach the same basic solution or to make the same mistakes again.

USE LOCAL OR DOMESTIC RESOURCES:A new CHP plant will shortly be built in the city Gorzow in Poland. It is based on a local gas supply, and in this way the project is made feasible whilst reducing the CO2 emissions considerably. The plant will substitute a coal burning installation. It uses two Siemens SGT 800 gas turbines, two Aalborg Engineering SteamGenTM 8 HRSGs and a Siemens steam turbine. This configuration is securing the best electrical efficiency and a total efficiency well over 90 %.

BUILD A SYSTEM ON DIFFERENT FUELS:It is equally important to make sure that you will not be depending of single sources of fuel in the system. In Denmark we have a wide selection of fuels in the district heating and CHP systems. Some

areas are defined as gas based, some could be biomass, and others could be sun and so forth. Each country and area should be looking at possibilities for creating a multi-fuel society, where all sources are evaluated. It could be that an industrial area has some heat from the production, waste incineration, straw from local farmers or geothermal heat.

FLEXIBILITY IS THE BUZZWORD:Flexibility may be the most critical requirement. With liberalized power markets, large quantity of wind power (sometimes), energy price fluctuation and constantly new political agendas, it is a bare necessity to have a stabile backbone, with a large number of alternatives. Large-scale plants has to be fuel flexible and fast starting/stopping to handle the new era of smart energy nets. It is in this context that a district heating network can be used as a part of the solution for energy conservation.

These topics are just the tip of the iceberg to consider when a district heating scheme is considered. However, they are important.

Today Denmark is the frontrunner in the transition from fossil fuels to renewables, and the previous independent energy strategy is under pressure. Denmark is still a net exporter of energy and is now also the world largest importer of wood pellets. It is important to use a new life cycle analysis of these imported pellets to include the handling and transport. You can argue that we are currently moving fast away from our achievements: no more fuel flexibility, no more domestic or local fuels? But that is another story.

By Bent Have Johnsen, Sales Director, Aalborg Engineering

Process Steam

Production

Heat Recovery after

Gas Turbines

Industrial Waste Heat

Recovery

Customised Boiler Solutions- Optimised Revenue Potentials

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

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

Industries:- Refineries- Paper/Pulp- Mining

Benefits: - 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

Benefits:- CO2 savings - Power production potentials- Optimised waste/dust handling

DBDH in Russia

DBDH annual report 2013

In 2013, the DBDH team continued to join forces in district heating

sector visits to selected Russian & Ukrainian regions. Together with

locally represented Danish companies, we have built up a strong

team, which has planned the strategy and the program.

The Danish Ambassador Mr. Tom Risdahl Jensen, Moscow, Danish

Consul General Mr. Klaus Sørensen, St. Petersburg, and Danish

Ambassador Mrs. Merete Juhl, Kyiv, have supported our confer-

ences and exhibitions all the way and opened many a door for the

Danish companies that are active in these regions. In addition we

have had the valuable support from the Danish Ministry of Climate

and Energy, Senior Policy Advisor Mr. Anders Hasselager who has

opened the seminars “Energy Savings and Energy Efficiency” by

giving an insight to the remarkable results in Denmark.

In 2013, the team went to the Northern regions of Murmansk &

Arkhangelsk, to Kyiv & Lviv in Ukraine, and made a second visit to the

regions of Tyumen & Chelyabinsk, where DBDH enjoy a very strong

connection with Fortum.

SUMMER: SECTOR VISITS TO MURMANSK & ARKHANGELSK

The DBDH conference on energy efficiency and energy savings

headed by the Danish Ambassador Tom Risdahl Jensen was at-

tracting more than 120 guests from the district heating sector

of Murmansk Oblast on 10 June 2013. “Energy efficiency issues

are a focus of the Murmansk region; we have the ambitious task

of reducing energy intensity of the production by 40% by the year

2020 in comparison with the year 2007. Another task is to provide

our population with district heating at affordable prices, and the

Danish experience in these areas could help us to achieve those two

targets” was the opening remark of Deputy Governor Mr. Sergey

Gubich, thereby expressing the importance of facilitating the co-

operation between Russian and Danish companies in the district

heating sector. Participating Danish companies made presentations

of their knowhow and technologies at the conference, and had

unique opportunities for bilateral talks with the district heating

sector of Murmansk.

A high level round table meeting followed up on the conference,

chaired by the Vice Governor of the Murmansk Region Mr. Sergey

Gubich and Ambassador Tom Risdahl Jensen.

On June 13, the conference “Energy Savings and Energy Efficiency

in district heating” was opened by Deputy Governor, Alexey Alsufiev

in Arkhangelsk: “Our region has focus and great potential for en-

ergy efficiency and energy savings, and the conference is of great

interest both to our Government, the enterprises and organisations

working in this field”, the Governor said in his welcoming speech.

The two-day program also offered a presentation of the devel-

opment strategy of TGK-2. The company comprises five Russian

regions: Arkhangelsk, Vologda, Kostroma, Novgorod and Yaroslav,

and owns 12 heat and power plants, 14 boiler houses and 4 heat

network enterprises.

SIGNING OF MEMORANDUM OF UNDERSTANDING

Led by the Governor of Khanti-Mansiysk, YUGRA, Siberia, Natalya

Komarova, a Russian delegation on energy visited Copenhagen

on June 27 on invitation from the Danish Minister of Trade and

Investment, Pia Olsen Dyhr. The delegation consisted of 16 of-

ficials, company leaders and assistants from the energy sector in

Khanty-Mansiysk. During the visit, DBDH signed a prolongation of

the MoU with Center for Energy Saving Yugra during a ceremony

in the Ministry of Foreign Affairs, hosted by the Danish minister.

AUTUMN: DISTRICT HEATING SECTOR VISIT TO KYIV & LVIV, UKRAINE

From 30 September to 4 October, Danish Ambassador Merete Juhl

headed the district heating sector visit to Kyiv & Lviv with the focus

to meet the DH Sector in Ukraine for discussion of possibilities for

cooperation with Danish companies.

The Eastern Europe Energy Efficiency and Environment Partnership

(E5P) recently approved projects in the district heating sector

amounting to EUR 70 mio. The E5P Fund was established by interna-

tional donors (Denmark is among them) to co-finance investments

in the Ukrainian municipal sector and the EU Eastern Partnership

countries with a focus on demand-side efficiency improvements.

During a session at the Danish Embassy, the Danish companies

got a deeper insight in the expectations to the district heating

market, investments and projects during discussions with NEFCO,

EKF and Ramboll.

P15dbdh.dk

DBDH in Russia On 1 October, a district heating seminar took place co-arranged

with the Ministry of Housing. Deputy Minister Mr. Vitaliy Kindrativ,

hosted the meeting, which was attended by a large amount of

district heating companies from different cities and municipalities.

Also the association of the district heating companies in Ukraine,

UKRteplokommunenergo, was represented by their President, Mr.

Arseniy Blaschuk. Jane Karanda, Principal Advisor of E5P, gave an

insight of the regions and cities that have been approved in con-

nections with DH projects funded by E5P.

The event in Kyiv comprised a site visit to Kyivenergo TEC-5, where

the DBDH delegation was received by Mr. Yuriy Gladyshev, Director

of Kievskie TETS. Confirming the interest to cooperate with Danish

companies, Mr. Gladyshev presented information about the CHP

plants, and touched upon priorities of Kyivenergo, new investments

plans and projects.

In Lviv, the delegation visited Lvivteploenergo TEC-1 as well as

a newly renovated boiler station. The delegation was met by Mr.

Stepan Pakizh, Director, and received information on the district

heating system in Lviv, followed by an open and fruitful discussion

with the management before the tour of the plant.

At the seminar in Lviv on 3 October, co-organized by the Association

of Energy Efficient Cities, the Danish and the Ukrainian side ex-

changed information through the many presentations and later

continued discussions during B-2-B meetings.

WINTER: DISTRICT HEATING SECTOR VISIT TO

TYUMEN & CHELYABINSK

Mid-November, the DBDH Russian Team visited the regions of

Tyumen and Chelyabinsk. The aim for the Danish delegation was to

share and discuss experiences on energy efficiency and introduce

the concept of “Low Hanging Fruits”. The task of the latter is to

show the Russian public services and industry specific ways to im-

plement energy efficient technology through projects with a short

payback period. The presentation of the “Low Hanging Fruits” took

place on 12 November in Tyumen at the round table meeting at

FORTUM focused on: “Increasing energy efficiency of enterprises,

housing and communal services of Tyumen region“.

The visit to Tyumen caught the eyes of the Russian media and shows

just how ripe the Russian public as well as the official Russia is to

implement energy efficient technology into their vast production

apparatus.

Tyumen service utilities badly need to be upgraded to minimize the

sincere losses in the systems, which at the present state is money

out the window! The Danish companies are eager to enter into

cooperation in order to change and improve the energy efficiency

in Tyumen. These topics were discussed during round table meet-

ings with the Finnish energy company Fortum - the leading energy

company in the regions of Tyumen and Chelyabinsk.

In Chelyabinsk, the Danish delegation met the district heating sector

during a seminar hosted by Fortum. Fortum is the main supplier of

all consumed energy in Tyumen and Chelyabinsk and is an absolute

monopolist in the sector. Furthermore, the delegation had a meet-

ing with the Vice-Chairman of Chelyabinsk Oblast Government, Mr.

Sergei Shall. The Vice-Governor is responsible for infrastructure,

building and housing sectors in the region and the meeting led to

fruitful talks on cooperation with the Oblast and Fortum.

Companies teaming up for events in Russia & Ukraine

Aalborg Engineering, ABB, Abratek, Danfoss, Dall Energy, DES,

Desmi, EKF, EraPower, GMF, Grundfos, Hydro-X, Kamstrup,

Logstor, Rambøll, Salling Plast, SPX Flow Technology, Teplotex,

Unotransport

P16

Annual report 2013

P17

P18 DBDH annual report 2013

A new DBDH and a new organisation

DBDH “makeover”In 2013, DBDH had a “makeover” with a new logo and two new websites. All this is a result of the new strategic cooperation between DBDH

and FIF Marketing - named “Fjernvarmeindustrien” (The Danish District Heating Industry). The purpose of the cooperation is to unify

and strengthen the Danish district heating industry. The strategic cooperation will work for its members’ political interests and support

political, commercial and export interests - but also ensure the visibility and growth of the district heating industry both nationally and

internationally. The strategic cooperation gives a better opportunity to maintain a dialogue with politicians, officials and the media in

Denmark. Another key element is to increase knowledge sharing with networking activities. The organization’s new website can be seen

at www.fjernvarmeindustrien.dk.

A new logo was also a common wish for the new strategic cooperation. To express the close relationship, and at the same time maintain

the identity of the two individual organisations, it was decided to have a common visual identity among the strategic partners.

The logo symbolizes all the member companies - both large and small - in the organization with the green dot as the guiding force behind

it. The dots are placed in a square representing business and technology, the dots representing the softer values and symbolizes pipes.

www.dbdh.dkDBDH also got a new website in 2013. It uses the newest web design technology that increases the opportunity to interact and share

information with members and other users. We invite you to have a look for yourself at www.dbdh.dk

P19dbdh.dk

Focus groupsAlso in line with the new strategy, DBDH initiated 9 focus groups

among our members in 2013. The aim of the focus groups is to give our

member companies more influence on the work done in DBDH, and it

is also a tool to involve the many resources of our member companies

more actively. Focus groups have been established regarding the

markets Germany, UK, China, Russia, Poland, North America, and

“new markets” but also on focus areas such as “district cooling” and

“turnkey/financing solutions”. In these focus groups, a chairman will

be elected and common activities will be decided.

New report: Export boom in the Danish district heating industryFjernvarmeindustrien (The Danish District Heating Industry) also published a new report in 2013 based on a survey conducted by the

consulting company COWI on the future expectations of the Danish district energy industry’s job creation and exports. The output of the

report was very optimistic and positive. The industry expects to create 39% more jobs in 2020 compared to 2011 and to triple its exports

of district energy technology to 15 billion DKK in 2020. The expectations to especially the markets in Russia and China are positive and

more than 50 % of the export of Danish district energy technology will go to these two countries in 2020.

DBDH put district cooling on the agendaIn 2013, DBDH has been lobbying hard to get more district cooling projects in Denmark. More district cooling projects are needed to get

more innovation and development of concepts. Without cooling projects in Denmark we will miss out on sufficient knowhow and there will be

no DC showcases to show the many international guests. In Denmark, there are only few district cooling projects in operation. Neighboring

countries like Sweden, Finland and Germany have much more district cooling. The reason for the missing district cooling projects is the

regulation of district cooling in Denmark. Therefore, DBDH has worked hard to get the regulation of DC in alignment with the regulation

of district heating. Several meetings have been held with the Danish Energy Authority about the problem and it was also on the agenda

at DBDH’s annual meeting together with FIF Marketing at Christiansborg, the Danish parliament. Here several politicians participated

in a panel debate, one of the participants being the new Danish minister for Climate, Energy and Housing, Mr. Rasmus Helveg Pedersen.

P20 DBDH annual report 2013

DBDH in China and Mongolia

In 2013, China came in focus of DBDH. Never before had DBDH

commenced so many activities in China. This is one of the results of

the strategy for DBDH 2013-2015 where the focus is on promoting

district energy for a green city development. A survey, conducted

by COWI on behalf of DBDH, shows that the Danish sub-suppliers

and consultancy companies expect China to be the largest export

market for Danish technology and expertise within district energy,

in 2020. Therefore, DBDH want to give its members a platform to

realize their expectations in China.

As a result, a new Agreement of Cooperation was signed in June

between DBDH and the Chinese District Heating Association (CDHA).

Mr. Liu Heming, Deputy Director-General of Ministry of Housing and

Urban-Rural Development (MOHURD) and Secretary General of

CDHA signed the agreement together with Mr. Lars Hummelmose,

Managing Director of DBDH.

The purpose of the agreement is to increase the exchange of

information and help create the basis for new Danish-Chinese

district heating projects in China. Both parties will participate

in heating projects that utilize new technologies and advanced

equipment. Furthermore, both parties are to inform each other of

potential projects in the sectors of district heating and new energy

development for mutual benefits.

In June, the first joint activity between CDHA and DBDH was

held in Beijing, where the Danish Minister for Climate, Energy and

Building, Martin Lidegaard opened the Sino-Denmark District

Heating Seminar with the participation of Chinese decision-

makers, government officials and directors from more than 50

district heating companies. In parallel with the seminar, the Danish

companies had an exhibition where they had intensive dialogues

with the Chinese participants. The seminar was a part of a Danish

export promotion tour to China, and later the delegation continued

to Qingdao where the Qingdao - Denmark Round Table took place.

The focus of the roundtable was to define a pilot project between

Qingdao and the Danish companies. There is a close cooperation

between the Danish companies and the district heating companies

of Qingdao, and Grundfos has signed a contract of cooperation with

the local district heating company.

In 2013, DBDH also supported the strong relationship between

the cities of Aarhus and Harbin by involving its members in joint

activities in Aarhus as well as in Harbin. It is the hope that the

strong sister city relationship will lead to further Danish business

operations in Harbin for the future to come.

DBDH China, a part of DBDH, have in 2013 also had many activities

around China. In 2013 Mikael Jakobsson from COWI was reelected

as chairman.

DBDH China (DBDHC) have the following 9 companies as active

members: SPX, Broen, COWI, Danfoss, Grundfos, Hydro-X, Logstor,

ABB and Kamstrup. The secretariat is placed at the Trade Council

at the Danish Royal Embassy in Beijing.

2013 was a busy year with many activitites in DBDHC. In January,

a cooling promotion tour took place in Chongqing. Hans Halskov,

Consul General of the Royal Danish Consulate General in Chongqing

opened the Chongqing-Denmark Exchange Seminar on District

Cooling. The seminar was hosted together with the Municipal

Construction Committee. More than 40 local Chinese participants

attended the seminar, representing government, associations,

project owners and ESCO companies.

dbdh.dk P21

In April, a roundtable meeting was held at Wuhan Municipal

Construction Committee. A government speaker from Wuhan

Development & Reform Commission, Wuhan Energy Efficiency

Building Office gave an introduction on district energy development

in Wuhan, and local heating and power companies and engineering

companies gave introductions on their project experience.

Xinjiang is one of the key focus areas for Danish heating companies.

Headed by the Danish Ambassador to China, a Danish delegation

had, in October, a heating technology exchange seminar in Urumqi

with relevant Chinese participants, including Urumqi Construction

Committee, Urumqi Heating Management Office and main heating

companies. The delegation participated in political meetings with

the Xinjiang government both at provincial and city level.

Finally, in December, in Guangzhou, DBDHC had a roundtable meeting

with the Sino-Singapore Knowledge City aiming to be involved in a

local project as early as possible. Another site visit to Guangzhou

University City Huadian New Energy Co. Ltd. took place in the

afternoon. The day after, DBDHC had a roundtable meeting in

Shenzhen with China South City. Mr. Jia Xianzhong, General Manager

of the Purchase Dept., received the delegation and introduced their

near future development plan.

DBDH has a long tradition of cooperation with Mongolia and the

Mongolian district heating companies. In 2013, two events took

place. In September, a Mongolian high-level energy delegation had

a one-week trip to Denmark. The purpose was to promote Danish

experiences, technologies and solutions in District Energy, Urban

Development and Wind to the Mongolian decision makers; to

stimulate the network between the participating Danish companies

and Mongolian key stakeholders. Later in November, the Denmark-

Mongolia Exchange Seminar on Urban Planning and District Heating

was held at the Embassy. More than ten representatives from

the Mongolian Ministry of Energy (including the vice-minister for

Energy), UB Housing company and UB Heating company participated

in the meeting and gave presentations.

In 2013, DBDH produced two Chinese magazines. The first is a

Chinese version of the magazine Hot Cool featuring a preface by

Copenhagen’s Lord Mayer Frank Jensen and articles by Kamstrup,

Hydro-X, Grundfos, Dall Energy, ABB, Danfoss, COWI and DBDH

China - articles that can inspire the fast developing Chinese district

heating network.

DBDH and the Danish Energy Agency published the new joint

publication “District Heating – Danish and Chinese experience”. The

aim of the publication is to tell the story of Danish and Chinese

district heating and to contribute with concrete proposals on how

Denmark and China can jointly develop the district heating area.

The publication also presents a number of recommendations on

institutional and regulative changes as well as concrete policy

changes that China with advantage could implement.

In addition, the new DBDH website gives a stronger support to the

increased DBDH activities in China by having a Chinese section. The

site can be found here: http://dbdh.dk/chinese/.

P22

ENERGY POLICYCONFERENCE AT CHRISTIANSBORG

DBDH annual report 2013

ENERGY POLICY CONFERENCE AT CHRISTIANSBORG

On 19 March the three organisations: DBDH, Dansk Fjernvarme

(the Danish District Heating Association) and FIF Marketing jointly

invited utility companies, industry representatives as well as

politicians to join a debate about the district heating potentials

at Christiansborg, home to the Danish Parliament.

District heating seemingly has a lot of political support in these

years, but the expansion of the district heating network is not

carried out effortless. The Danish Minister of Climate, Energy and

Building, then Martin Lidegaard, has several times stated that

district heating is crucial in order to achieve a fossil-free electricity

and heat supply in 2035. Yet the framework conditions obstruct

the industry's continued success.

At the conference, the focus was put on natural gas conversions

and district cooling. In addition, the latest numbers on the industry's

revenue, growth and exports were revealed.

On the agenda at the conference was the following:

Is the competitiveness of district heating in danger? with

presentations by Jesper Møller Larsen, Aalborg Forsyning

and Kim Mortensen, the Danish District Heating Association.

District cooling - the potential and challenges with

presentations by Lars Tveen, Danfoss District Energy and

Peter Heymann Andersen, Ramboll Energy.

Panel discussion about gas conversion and district cooling

with contributions by members of the parliament Lars

Christian Lilleholt (V), Benny Engelbrecht (S), Rasmus

Petersen (R) and Claus Madsen, CEO of ABB. The moderator

was former CEO of DONG Energy, Anders Eldrup.

The district heating industry’s expectations to the future by

Lars Hummelmose, DBDH.

Presentation by Pia Olsen Dyhr, then Minister of Trade and

Investment.

The conference ended with dinner in Christiansborg’s

restaurant Snapstinget.

P23dbdh.dk

ANNUALMEETING 2013

The annual meeting 2013 took place in Bjerringbro and Silkeborg

on September 11th. The meeting was hosted by DBDH and FIF

Marketing and had more than 90 participants, representing all

aspects of the Danish district heating industry. The theme of the

day was Green city development and the future of district heating

in the low energy society.

The day was divided in two parts: First, a site visit in Bjerringbro

where showcases focused on the development of new green

technologies. The second part consisted of presentations and

debate with various guest speakers at Gl. Skovridergaard in

Silkeborg.

Tage Meltofte, Skive Fjernvarme, was first on stage at Grundfos

Academy, and gave a presentation of the processes and ideas

behind Europe’s largest gasification plant. Charles Hansen and

Johnny Schou, Grundfos, presented the next showcase: a joint-

venture project between the local heating plant and the global

billion dollar business Grundfos. The two partners had managed to

kill two birds with one stone by combining their needs and expertise

in a common energy center. The energy center generates cooling

for the machines in Grundfos, and then uses the return heat for

production, to heat up the city of Bjerringbro. Especially the start-

up and project development experiences made by the two partners

were of great interest to many visitors.

With five guest speakers, the scene was set for an intense

discussion, with many and various opinions. Will there be a need for

district heating in new houses with very limited heat consumption?

Has the sector lost its drive and ability to create innovate

solutions? Or will district heating remain a major supplier of heat

and innovation to the future energy market? Palle Jørgensen, the

first speaker, has more than 15 years of experience working with

low energy houses, and as a board member at the local district

heating plant, he knew both sides of the business. Even though

he was somewhat critical about the future for district heating

in these new kinds of houses, by presenting different actual low

energy projects that work and are running fine, he showed how the

need for heat, and therefore the need for district heating, might

look very different in the future.

Next was Signe Kongebro, Henning Larsen Architects. By focusing

on design and especially the use of sun light, she showed how

architectural innovation could significantly reduce energy use. We

should not only look to the construction of insulation, windows and

walls but also design when trying to save energy.

Karl Gustav Jensen, NCC was representing the construction

industry. He pointed to the problem of individual energy solutions as

being a very short-term solution. Due to the rapid development in

the sector, the technology could easily be out of date, even before it

really got up and running. District heating on the other hand, should

first and foremost be seen as a distribution system, the source

of energy could be changing as the times changes. The sector has

to be pro-active, in order to keep up with the development and

maintain their position as part of the future energy mix.

Stefan Birkebjerg Andensen, Director for City and Cultural

Administration in Odense, gave an input on how the city planners

see the development. District heating could still be a part of the

city development, but according to Stefan, it is important to come

up with more flexible solutions, in order to meet the needs of the

new low energy houses.

Last presentation was a macro-scientific input from Henrik Lund,

Professor from Aalborg University, who specializes in energy. After

years of scientific work on the future of the Danish energy system,

he still sees district heating playing an important role, despite an

expected dramatic fall in overall heat consumption. The cost of

changing into individual energy solutions would involve a massive

loss for society and huge CO2 emissions.

After the five presentations, it was time for debate and questions

from the floor. Many questions went to Palle Jørgensen, arguing

that his individual energy solutions involved a societal economy

loss compared to relying on the already existing common energy

solutions, like district heating. Palle Jørgensen argued against this

macro-level way of seeing things as it involves a great risk of killing

the innovation and initiative within the sector, through too much

regulation and control. Signe Kongebro warned against only involving

energy cost as a factor. City space, comfort, and architectural

design are other important factors for the future city-citizens.

The evening continued with a members’ dinner and networking.

Before the dinner was served, Lars Hummelmose, DBDH, and Eva

Rasmussen from FIF Marketing had a joyful announcement to make

- the new partnership between DBDH and FIF: Fjernvarmeindustrien.

This partnership involves a new common logo and an agreement

to combine efforts in future events, and political lobbying. The two

organisations will keep their structure as individual institutions but

with a much closer cooperation.

P24 DBDH annual report 2013

General assembly

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As is tradition, the annual general assembly of DBDH took place

at Christiansborg in March – this time together with the energy

conference held by DBDH, FIF Marketing and Dansk Fjernvarme.

MEMBERS OF THE YEAR

At the assembly, the DBDH member company and the DBDH person

of the year were revealed by Lars Hummelmose:

“The choice fell on a very active member of DBDH - a company

that since joining in 2002 has been very visible in DBDH - both at

home and abroad.

The company's member representative has been part of DBDH’s

board of directors more than once. The company participates in

many of DBDH’s export drives, and is particularly active in DBDH 's

Russia group. The company is also active as a reliable advertiser in

Hot Cool and also contributes with interesting articles and case

stories about district heating projects in the magazine.

Finally, we usually meet the company's member representative at

DBDH’s member meetings when he is not on the road worldwide.

It requires a lot of efforts to grow as fast as has been the case

for this company. Since becoming a member, they have grown to

more than double in size.

"Understanding Energy” is synonymous with Aalborg Engineering,

whom I am proud to announce as DBDH member of the year 2013.

Congratulations to Bent Have Johnsen and Aalborg Engineering.”

Also the DBDH person of the year was celebrated by Lars

Hummelmose:

“DBDH greatly appreciates this person's high personal commitment

to DBDH’s activities.

This year’s DBDH person is tireless when it comes to explaining the

characteristics of Danish district heating to foreign delegations

visiting Denmark.

The DBDH person is a born networker and a frequent guest at all

DBDH's events.

This year’s DBDH person also contributes to the articles in Hot

Cool - including articles about how consumers can measure their

heat on smartphones.

Before long, Frederiksberg gets its first district cooling project

that will provide cooling to the Frederiksberg shopping mall. This

is also a project in which this year’s DBDH person has a large

share. This year’s DBDH person is none other than Egon Erlandsen,

Frederiksberg Forsyning.

Congratulations to Egon Erlandsen.”

NEW BOARD OF DIRECTORS

At the General Assembly of DBDH in 2013, it was also time

for a new Chairman and a new board of directors to be

elected. Lars Gullev, Managing Director of the transmission

company VEKS, took over the job as chairman from Hans

Bjørn, Managing Director at TVIS. Lars Gullev is not new to

the task as he has previously been Chairman of DBDH . (See

the board of directors on page 31).

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P25dbdh.dk

New members of DBDH in 2013In 2013, DBDH welcomed following member companies

Aaen Consulting EngineersEngineers and planners

AbratekWear resistant solutions for power stations

DanTaetLeakage protection systems for

all types of pipe installations

EKFDenmark’s official export credit agency

Høje TaastrupDistrict Heating Company

Municipal district heating supply

OE3iSoftware solutions

PlanEnergiConsulting engineers

Ross EngineeringGeothermal

SasecoSoftware solutions

Uno TransportTransport

Viborg FjernvarmeMunicipal district heating supply

Wicotec KirkebjergEngineering and construction contractor

P26 DBDH annual report 2013

Utilizing waste heatin the cityCASE By Patrick Durup Thomsen, Project Engineer, Ramboll Energy

“Think of a resource-efficient society where smart

energy planning is the key building stone of a

system in which competitive, secure and clean

heating and cooling services are provided.”

One of the obvious megatrends of the future is the increasing

migration into the cities. Approximately 72% of all EU citizens

already live in urban areas, and more than 75% of the energy is

consumed within the cities.

This development puts a significant strain on the energy

infrastructure and calls for extensive planning in order to ensure

that efficient and cost-effective energy solutions are implemented

with respect to the existing infrastructure as well as future

expansions.

Following in the wake of urbanization are new opportunities to

strengthen the evermore urgent demand to cut CO2 emissions.

Urban areas are characterized by having high building stock density

which is a key parameter for district heating and cooling (DH&C)

networks to be competitive.

To further the implementation of more efficient and cost-effective

energy solutions, the EU has outlined a legal framework in the form

of the following three directives:

• The Energy Efficiency Directive;

• The Building Performance Directive;

• The Renewable Energy Directive.

Altogether, these initiatives support and obligate national and

local policy makers to consider whether a long-term investment

in DH&C infrastructure is a cost-effective alternative compared

to individual solutions, taking into account the synergies that this

type of infrastructure may have to offer.

No doubt, the European legislators have found a source of

inspiration in Denmark when forming these guidelines. Long-

term energy strategy is a Danish trademark and a discipline

that Denmark, and Danish energy consultancies in particular, has

developed and fine-tuned over more than four decades. This has

led to extensive knowledge in the field of smart energy planning -

knowledge from which other nations could benefit.

Looking ahead, it is becoming still more eminent to economize and

diversify primary fuel consumption. One particular mean to maximize

energy efficiency is to effectively recover the losses incurred during

production, conversion and distribution of energy whenever cost

effective. This can be done to a large extent by identifying primary

and secondary energy flows within the city, and based on this

mapping, determining how best to recover and distribute heat (or

cold) to where it is needed.

At the moment, waste heat production in the EU is the equivalent

of the total heating demand in the entire EU building stock. This

potential must be tapped into if we are to succeed in lowering

primary fuel consumption and mitigate climate change effectively.

CELSIUS is an EU sponsored initiative aiming to develop best

practices for DH&C projects focusing on capture and utilization of

secondary energy in the cities. London is one of four CELSIUS cities

P27dbdh.dk

Photo: Thomas Rønn

selected for demonstrating pioneering concepts and technology

that will help other member states in their endeavor to lower

primary energy consumption.

Ramboll was chosen as partner to carry out an Options Appraisal

Study based on its track record within sustainable DH&C solutions.

The scope of the services provided by Ramboll was to develop

district heating concepts based on the utilization of waste heat

from two secondary sources within the Islington Borough.

Available heat sources were located at a ventilation shaft connected

to the London Underground and in a power substation respectively.

Both heat sources where classified as low grade, meaning that a

temperature upgrade should be performed by means of electrical

heat pumps.

It was Ramboll’s recommendation to implement local CHP driven

industrial heat pumps in 24-hour operation mode (base load) in

order to obtain the necessary temperature for the purpose of

supplying space heating in several existing residential buildings.

The heat would be distributed through an extension to an already

existing section of the Bunhill district heating scheme.

The project is still in its initial phase. However, expectations are that

the project will be a success. Ones proven, the concepts should be

an example to follow, allowing more cities to replicate solutions with

the primary goal of lowering their energy consumption by 20% by

2020 in accordance with the overall EU objectives.

The CELSIUS project is based on the vision of a clean and resource-

efficient energy supply and is just one of many smart city initiatives

emerging at the moment. DH&C can provide the means to supply

densely populated areas with low cost and low carbon energy

services beneficial to the local environment and to the household

economy.

Denmark, Sweden and Finland are all countries where district energy

concepts has proven both private- and socio economically viable,

but on widely different backgrounds. Developing suitable business

models is the key, taking into account national legislation, local

resources as well as the existing infrastructure.

Several studies, including Heat roadmap Europe from 2012-2013,

underlines the enormous potential of DH&C – not only will the

implementation of more district energy decrease the primary

energy supply, allow more renewable sources in the energy mix and

cut emissions, it will also be a cost effective alternative that can

boost job creation in a sustainable way.

P28 DBDH annual report 2013

District heating in numbers

3000

2500

2000

1500

1000

500

01981 1990 2000 2012

1000 units Oil Boilers Natural Gas BoilersDistrict Heating Others

100

80

60

40

20

01990 1995 2000 2005 2010 2012

%

Renewable Energy and WasteNatural Gas

CoalOil

100

80

60

40

20

01995 2000 2005 2010 20121990

%

District HeatingElectricity

125

120

115

110

105

100

95

90

85

80

751990 1995 2000 2005 2010 2012

Index 1990 = 100Heated Floor Space Final Energy ConsumptionFinal Energy Consumption per m2

CHP share of thermal power anddistrict heating production

By generating electricity and district heating together, it is possible

to exploit the large amounts of heat generated through thermal

production of electricity.

In 2012, 74.6% of thermal electricity production (i.e. total production

less wind power and hydropower) was produced simultaneously with

heating. This is an increase of 11.4 percentage points relative to 2011.

The sharp increase reflects large net imports of electricity which have

replaced electricity generation at condensation plants.

In 2012, 73.0% of district heating was produced together with electricity.

This is a fall of 3.5 percentage points compared with 2011.

Fuel consumption for district heating production, percentage distribution

There was a significant change in the fuel used in the production of

district heating in the period 1990 to 2012.

Consumption of renewable energy has gone up. In 1990, the share of

renewable energy was 21.7%, while in 2012 it had reached 43.7% (of

which biomass 42% and other renewables 1.7%).

Contrary to this coal has decreased significantly. From 1990 to 2012,

the share of coal fell from 44.2% to 18.3% of total fuel consumption

for district heating.

Consumption of natural gas for district heating was 17.4% in 1990,

increasing to a level of around 30% up through the 1990s. In recent

years, the share has dropped slightly, and in 2012 the share was 26.7%

The share of oil was 2.7% in 2012, and electricity for heat pumps and

electric boilers was 0.8%.

.

Heating installations in dwellings

The significant changes in the composition of energy consumption by

energy type reflect changes in the composition of heating installations

in dwellings over time. Until the mid-1980s, oil boilers clearly dominated

the market, after which district heating became the most common

source of heating. Thus since the late 1980s and during the 1990s,

the number of district heating installations and natural gas boilers

continued to increase at the cost of oil boilers.

As at 1 January 2012, the total of 2.75 million heating installations could

be analysed as follows: District heating installations 62.1%, natural gas

boilers 15.4%, oil boilers 12.5%, and other installations, including heat

pumps, electric heating and wood-fired boilers, 9.9%.

Source: Statistics Denmark

Energy consumption for heating dwellings

Since 1990, climate-adjusted energy consumption for heating (space

heating and hot water) has been between 0.1% and 7.6% higher. In 2012,

energy consumption was 0.9% higher than in 1990. From 2011 to 2012,

energy consumption for heating fell by 4.6%.

The background for this is a 20.8% increase in total heated area from

1990 to 2012.

In the period 1990 to 2012, energy consumption for heating per m2 fell

by 16.5%. This fall can be explained by improvements in the insulation

of older dwellings as well as a shift away from old oil boilers to more

efficient natural gas boilers and district heating installations. In addition,

according to the building regulations, new dwellings must have lower

energy consumption per m2 than existing dwellings.

Source: The Danish Energy Agency.

P29dbdh.dk

Export in numbers

1 UK 9.5 15.5

2 Germany 7.8 12.8

3 Sweden 6.1 10.0

4 USA 6.1 9.9

5 Norway 3.5 5.6

6 China 2.2 3.6

7 France 1.9 3.1

8 Australia 1.9 3.0

9 Italy 1.6 2.7

10 Spain 1.5 2.5

No. Importing country DKK billion

% of total exportsof energy tech.

& equipment

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

70.000

60.000

50.000

40.000

30.000

20.000

10.000

0

DKK billionNorth AmericaBRIKS

EUOther

2007 2012

11

10

9

8

7

6

5

4

3

2

1

0

%

Ireland

TheN

etherlands

Belgium

Greece

Portugal

Luxembourg

Spain

Great B

ritain

France &M

onaco

EU

15

Sw

eden

Finland

Austria

Italy

Germ

any

Denm

ark

70

60

50

40

30

20

10

0

20%

15%

10%

5%

0%

Billion DKK,current prices

1996 2000 2005 2010 2012

Exports of energy technology and equipment

Share of Denmark's total exports of commodities (right axis)

Exports of energy technology and equipment

Exports of energy technology and equipment such as wind turbines,

district heating pipes, thermostat valves, pumps etc. increased rapidly

up to the year 2008, peaking at DKK 69.7 billion.

Following falls in 2009 and 2010, exports increased once more in 2011

and 2012 and were 1.2% higher in 2012 compared with the year before.

In 2012, Denmark exported energy technologies and equipment at a

value of DKK 61.1 billion, corresponding to about 10.0% of total Danish

goods exports.

Share of energy technology for EU members

Denmark is that country among the EU 15 members where the energy

technology’s share of the total export of goods is the highest. Denmark

has enjoyed this position for years. In 2012, Germany and Italy shared

the second place. Both countries have an export share of 9%.

The energy technology’s share of the total export of goods has in the

past years been near the 2007 level. The same has been the case for

the other EU countries. This mirrors the fact that the export of energy

technology is still a Danish position of strength.

The most important export markets

Up until 2010, Germany was the biggest export market for Danish

energy technology. In 2011, UK took over the leading position, and held

this position in 2012. In 2012, 15.5 % of the export went to UK.

After UK comes Germany with 12.8 % of the Danish energy technology

export. USA is together with China and Australia the only non-EU

countries on the top 10 list over export recipients. The 10 countries

on the list together buy almost 70% of the total Danish export of

energy technology.

Export of energy technology divided in groups of countries

EU is still the largest export market in 2012 with an export share of

60.7. This is almost 4 percentage points more than the year before. The

increased export share is partly due to the export to the EU having

grown by about one billion DKK, partly due to the export to non-EU

countries having decreased. This goes for e.g. North America, where

the export share has decreased to 10.4%.

Source: The Danish Energy Agency et al.Source: The Danish Energy Agency.

P30 DBDH annual report 2013

DBDH MembersAaen Consulting Engineers

Aalborg Engineering

Abratek

ABB

OE3i

PlanEnergi

Processbio

Rambøll

Ross Engineering

Saseco

Schneider Electric

SK Forsyning

SPX Flow Technology

SSM Denmark

TVIS

Unotransport

VEKS

Vestforbrænding

Viborg Fjernvarme

Wicotec Kirkebjerg

Logstor

Niras

AffaldVarme Aarhus

Amager Ressource Center

ARCON Solar A/S

BROEN

Brunata

BWSC

COWI

CTR

Dall Energy

Danfoss

Dansk Energi Service

DanTaet

DESMI

EKF

Fjernvarme Fyn

Forsyning Helsingør

Frederiksberg Forsyning

Grontmij

Grundfos

HentechSolution ApS

HOFOR

Hydro-X

Høje Taastrup Fjernvarme

isoplus Denmark

Kamstrup

Aerovit

Lars Hummelmose

Managing Director

Pia Zimmermann

Export Manager

Kathrine Windahl

Information andMarketing Manager

Ricky Bjørkvik

Export Manager

Steffen Kristensen

Student Assistant

Board of directors

P31dbdh.dk

Secretariat

Lars Gullev, Chairman

Managing Director, VEKS

Peter Heymann Andersen

Vice Chairman

Country Manager,Ramboll Energy Denmark

Bent Have Johnsen

Sales Director, Aalborg Engineering

Martin B. Petersen

Export Sales Manager, ABB

Knud Bonde

Division Director; Heat, Cooling & Water,Kamstrup A/S

Casper Waad Svane Nielsen

Senior Director, Marketing and Sales Director,District Energy, Danfoss

Peter Jorsal

SVP Sales Nordic, LOGSTOR

DBDHStæhr Johansens Vej 38

DK-2000 Frederiksberg

Phone: +45 3818 5440

dbdh@dbdh.dk

www.dbdh.dk

The right pipe pays off

Costs resulting from inefficient district heating pipe systems that lose heat and require a lot of maintenance accumulate steadily over the service life of the system.

You can easily make big reductions in such operating costs by making the right upfront decisions about the type of pipe and the insulation thickness best suited to your particular project. The right decision helps roll back your operating costs as well as your CO2 emissions.

The LOGSTOR range of pipes and joints ensures versatile, energy-effective and environmentally responsible solutions throughout your district heating networks.

Calculate the savings you will achieve using our web-based calculation tool at www.logstor.com/calculator. Or contact us now.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

100%2.51 80%

2.00

20%0.51

58%1.44

42%1.06

48%1.20

52%1.06

Comparison of CO2 emissions

CO2KTon Saving

Pipe pair

Steel, trad.DN: 65Serie 2

Pipe pairw. diff.

Steel, contiDN: 65Series 2

TwinPipew. diff.

Steel, contiDN: 65Series 2

TwinPipe

Steel, trad.DN: 65Series 2

0

5

10

15

20

25

80%19

100%24

48%11

20%5

52%12

57%14

43%10

Comparison of heat loss

Heat loss

Pipe pair

Steel, trad.DN: 65Series 2

Pipe pairw. diff.

Steel, contiDN: 65Series 2

TwinPipew. diff.

Steel, contiDN: 65Series 2

TwinPipe

Steel, trad.DN: 65Series 2

KW Saving

Comparing performance in different types of pipe laid in a 1,000-metre length of trench indicates heat loss reductions and CO2 savings of as much as 52% These calculations were carried out using the LOGSTOR Calculator.

LOGSTOR A/SDanmarksvej 11 · DK-9670 Løgstør · DenmarkTel. +45 9966 1000 · Fax +45 9966 1180logstor@logstor.com · www.logstor.com

Your savings add up

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1778 EHP Annonce.indd 1 03/05/13 12.34