Innargi enters framework agreement for geothermal district heating in Copenhagen, Denmark
Winter view in Copenhagen, Denmark (source: flickr/ Kristoffer Trolle, creative commons)
Carlo Cariaga
25 Oct 2022
Innargi has entered a framework agreement with district heating companies VEKS, CTR, and HOFOR to to bring geothermal district heating to Copenhagen, Denmark.
Danish geothermal developer Innargi has entered into a framework agreement with district heating companies VEKS, CTR, and HOFOR that lays the foundation for the breakthrough of geothermal heating in the Copenhagen metropolitan area. The geothermal potential in the 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 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 multi-stranded 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”, says Lars Gullev, CEO in the district heating company VEKS.
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”, says Kamma Eilschou Holm, CEO in CTR, Metropolitan Copenhagen Heating Transmission.
In HOFOR, the chairman of the board Susanne Juhl 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”.
Metropolitan Copenhagen can pull others in the same direction
At Innargi who is responsible for the construction and operation of the geothermal plants for the district heating companies, the CEO Samir Abboud says: “We are very happy, as it looks like we will get a breakthrough for geothermal energy in metropolitan Copenhagen. First and foremost, this means even more green, stable in price district heating for a great many customers. But the geothermal energy project in metropolitan Copenhagen will also make geothermal energy an attractive source of energy for many medium sized district heating companies nearby where isolated geothermal energy projects are too expensive. Those projects will benefit economically if they are established in connection with the bigger project in metropolitan Copenhagen”.
Source: Innargi via LinkedIn
