Hydrogen and District Heating Development in Esbjerg
Large PtX facilities that can generate hydrogen from electricity and water are in development in Esbjerg, Denmark. PtX facilities develop large amounts of excess heat from the processes that can be utilized for district heating, or else need to be cooled away.
To support the PtX developments and secure excess heat for district heating, Din Forsyning – the local water and heating utility, initiated a project to provide a cooling solution to the PtX process and integrate as much excess heat for district heating as possible.
The preparations started in 2021 in close collaboration between the city, the utility, and two of the larger PtX developers. In 2023, a development agreement for finalizing the projects was agreed upon by the parties, with an expected investment decision in 2025 and the first phase planned to be operational in 2027.
District Cooling and Excess Heat Integration Phases
The project is based on connecting the industrial facilities to the district heating networks to send excess heat to the district heating system and to establish cooling plants based on seawater to supply the facilities with cooling for the times when the heat cannot be absorbed in the district heating system.
The project is scheduled in two phases:
Phase 1: Consisting of a 235 MW excess heat and district cooling system.
Phase 2: Planned to add another 600 MW of cooling capacity.
Devcco initiated the project, responsible for all commercial, technical, and organisational development in the concepting and BCR stage of the project. This included high-level business case development, draft company and organisational structure, and financing model, as well as customer interaction and dialogue with the PtX developers.
Comprehensive Feasibility Study for District Energy
In the feasibility stage, Devcco maintained responsibility for commercial, financial, and organisational development, elaborating the business case with pricing and financing models, as well as a development roadmap for bringing the project to financial close. In spring 2023, the parties (the utility and the PtX developers) finalized the development agreement, which governed the final development of the project, including governance structure, roles and responsibilities, as well as financial contributions of the parties.
Innovative Solutions for Energy Transition
In the maturing phase, bringing the project towards financial close and construction, Devcco has led the commercial negotiations on customer contracts, business case modelling for cooling supply and excess heat remuneration. Devcco has also developed the internal business plans for Din Forsyning to finance, establish, and operate the new district cooling and excess heat delivery division. This division serves as a commercial utility in the group to support and complement the existing district heating utility and help deliver on the group strategy to become a No Waste, Fossil Free supply, and a Flexible Business Partner.
