DONG Energy has just entered into a 15-year agreement with 'Eniig Varme', 'Energi Ikast Varme' and 'Sunds Vand- og Varmeværk' on supply of district heating from Herning Power Station.
The agreement entails that Herning Power Station establishes a plant utilising the heat in the flue gas, ie a flue gas condensation plant. This will enable Herning Power Station to render even more energy from the wood chips used as the primary fuel source. Doing this, the power station will be capable of delivering the same amount of heat in the Danish municipalities Herning, Ikast and Sunds in 2019 with a fuel consumption which will be approx 20% lower than today.
"I'm pleased that Herning Power Station will continue to provide stable, green district heating to our heat customers in Herning, Ikast and Sunds. With the new agreement, we're making Herning Power Station even more efficient and consequently more climate-friendly," says Thomas Dalsgaard, Executive Vice President in DONG Energy.
An affordable, reliable, efficient and green agreement
The Danish heat supply companies in Herning, Ikast and Sunds are very satisfied with this agreement which has been finalised after more than two years of negotiations.
"In Ikast, we're satisfied with the results of the very lengthy negotiations as the agreement ensures continued green heat supply for our district heating customers, which means that we can maintain an attractive heat price for our part owners in Ikast," says Kaj Hansen, CEO of 'Energi Ikast'.
"It's been important for us to enter into an agreement which first and foremost gives our customers attractive heat prices and a stable heat supply based on sustainable fuels. We're very pleased that improvements to the Herning Power Station has also been agreed upon in connection with the new agreement, so that operations will become more efficient as well as greener," says Erling Vendelbo Klemmensen, Head of the heat division in 'Eniig Varme'.
"With this new agreement, we're looking forward to improved collaboration on district heating in the Herning-Ikast area. The agreement meets a general need for an affordable, reliable, efficient and green heat supply and a desire for local anchoring as well as proximity to the district heating customers in Sunds. The course for developing 'Sunds Vand- og Varmeværk' during the next 10-15 years can now be set out more precisely within this framework," says Stig Østergaard Nielsen, Chairman of the Board of 'Sunds Vand- og Varmeværk'.
The new heat agreement covers the period 2019-2033. DONG Energy expects to begin building the new flue gas condensation plant in Q4 2017.