E.ON to invest SEK 350 million in new biomass heat capacity in Norrköping
E.ON Sverige AB, the Swedish subsidiary of Germany-headed energy major E.ON AG, has announced that it has reached an agreement with the city of Norrköping. E.ON will vacate the Inner Harbour area where it currently has a peak load and backup heat plant enabling the municipality to develop a new residential area. Instead, E.ON will invest SEK 350 million (≈ EUR 33.4 million) in a new biomass-fired peak-and backup district heat facility in the Ingelsta commercial area of the city.
E.ON Sverige and Norrköping municipality have in close cooperation planned for Norrköping’s future urban development. According to a statement, E.ON will vacate the Inner Harbour area in Norrköping where it currently operates the Skeppsdockan peak- and backup heat plant.
The Inner Harbour is a new neighborhood development in central Norrköping where the municipality plans for housing, workplaces, bathing areas, marina, and new canals. The area is being expanded step by step to provide approximately 3 000 homes when fully developed.
New biomass-fired heat plant
As a replacement for the Skeppsdockan plant, E.ON will build a new biomass-fired peak- and backup heat plant facility at Ingelsta industrial area, an investment of SEK 350 million (≈ EUR 33.4 million).
The investment goes hand in hand with E.ON’s ambition that all energy we produce and supply should be one hundred percent recycled or renewable no later than 2025. So when Ingelsta is in operation, our entire reserve production capacity in the municipality will be one hundred percent renewable, said Marc Hoffmann, Country Manager for Sweden at E.ON.
In addition, E.ON has provided the city with a purchase option for the Triangeln neighbourhood located in the southern part of the Inner Harbour, which opens up for future development of the area.
The purchase option gives us the opportunity to develop the entire Inner Harbour to an attractive neighborhood in central Norrköping. We are very pleased with the cooperation with E.ON, where our joint development plans mean that we together work for continued strong and sustainable growth, commented Lars Stjernkvist, Chairman of Norrköping’s Municipal Board.
District heating in Norrköping is produced at the cogeneration plant Händelöverket, which recovers energy from residual products. In the event of severe cold or interruptions in the regular production, reserve installations enter into operations providing backup.
E.ON has currently two such reserve facilities in Norrköping: Skeppsdockan – which will be replaced by Ingelsta by 2021/2022, and Navestad, which was converted to biofuels in 2018.