Open District Heating and District Cooling: Enabling and Incentivizing Large Scale Heat Recovery in Stockholm

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1 Open District Heating and District Cooling: Enabling and Incentivizing Large Scale Heat Recovery in Stockholm Mattias Ganslandt, Chief Business Developer, Fortum Värme

2 Fortum Värme Working towards a Sustainable Energy System in Stockholm Key Facts The city of Stockholm has a population of and the greater metropolitan area a population of 2.2 million Fortum has an annual district heating supply of 7.4 TWh (2015) and a peak load of 3.7 GW Supply of district heating in the greater metropolitan area is 12 TWh Fortum s network comprises 2800 km of district heating pipelines and 250 km of district cooling pipelines 2

3 Heat Recovery and Sustainable Energy is Fortum Värme s Core Business Example: KVV8 New Biofueled CHP plant operational in 2016 Biofuel 400 MW (forest residue, wood chips) Thermal boiler capacity 330 MW Electric power generation 130 MW District heating output 200 MW Flue gas condensation 80 MW Energy efficiency 102% 3

4 District Cooling as Heat Recovery Quick facts: District cooling network construction started in 1994 Based on co-production of district cooling and district heating with heat pumps plus free cooling using sea water Fortum Värme has close to 400 district cooling customers and sold 361 GWh in 2015 With district cooling we recover waste heat in the winter using heat pumps that can be used as cooling machines for peak production of cooling in the summer. 4

5 Fortum Värme s Heat Recovery in Practice (Example: Kista) Kista Heat Recovery plant is built to serve all the district cooling customers in Kista both process cooling customers (such as data centers) and other cooling customers (such as offices, shops, hotels and restaurants). In the Summer, we meet peak load demand using cooling machines with evaporative cooling towers. In the Winter, we recover heat from the district cooling network with heat pumps. Quick facts: 1. Kista Heat Recovery Plant was built in There are 6 cooling machines in the plant. The peak load cooling capacity in the summer is approximately 48 MW. The largest, machine no 6, has a cooling capacity of 13 MW. 3. Three of the machines (HP1, HP2, HP3) can operate as heat pumps and produce district heating with a combined heat recovery capacity of 18 MW and a district heating capacity of 27 MW 4. COP (the Coefficient of Performance) is approximately 3 when district heating is produced 5. Machine no 3 has two compressors that can work in parallel during the Summer (cooling capacity 10,8 MW) and in series in the Winter (6 MW cooling), which allows for a leaving condensor temperature up to 78 C 5

6 Decentralized Heat Recovery with Open District Heating A Simple Solution Cool the data center with a heat pump Sell excess heat to the district heating network (Option) Sell surplus cooling capacity to the district cooling network Long term and transparent contracts, years The data center invests in the heat pump Fortum Värme invests in the connection to the distribution system 6

7 The Old Ways The Way Forward Heat Rejection Heat Rejection Heat Recovery Heat Recovery Cond. Power Data Center Cooling Machine CHP Data Center Heat Pumps District Heating Fossil fuels Renewable fuels Open District Heating allows data centers to locate in Stockholm in proximity of Fortum Värme s production and distribution for district heating. It enables data centers to recover heat and turn waste heat into revenue. Complements include renewable electricity, connectivity and reliable power distribution. 7

8 Turning Waste Heat Into Revenue with Open District Heating A Unique Market for Recovered Energy Fortum Värme has created a market place for recovered heat and production capacity We offer long-term transparent contracts and open prices for trade in excess heat and cooling Large as well as small companies and businesses can join the scheme 8

9 Expected Revenue from 1 MW of Open District Heating in

10 Making District Heating More Heat Recovery Friendly Reduce the district heating temperature Improve the cooling of district heating water Smooth the heating load Increase the seasonal thermal storage capacity Find new markets for low temperature heating 10

11 Don t Waste Your Energy! More information: Mattias Ganslandt, Ph D Chief Business Developer Mobile: mattias.ganslandt@celec.eu LinkedIn: 11