Silkeborg takes next step toward climate-friendly district heating

Located in central Jutland, Silkeborg Forsyning has signed contracts with compatriots Dall Energy ApS, a biomass gasification technology provider, and Exodraft Energy A/S, part of the heat recovery specialist Exodraft Group, for the supply of a 20 MW biomass heat plant and a 22 MW heat pump, respectively.

The biomass heat plant will use garden and park waste from private gardens and public areas as fuel for district heating, and the heat pump, which is an air/water pump, will extract the heat from the air and use it also for district heating.

We are super happy to enter into a collaboration with Silkeborg Forsyning. At Exodraft Energy, which is part of the Exodraft Group, we have a stated goal of contributing to the green transition by making the heat supply CO₂ neutral. It is exactly the same goal as Silkeborg Forsyning, and that makes the collaboration obvious. It is the largest heat pump project we have ever been involved in and the largest contract in Exodraft Energy’s history. So we are naturally very proud to have been chosen, and we are happy to collaborate with professional partners such as Silkeborg Forsyning and their advisers, said René Mulvad, Director of Exodraft Energy.

Integrated hybrid heating

Together with Silkeborg Forsyning’s existing 30 MW electric boiler and a new 50 MW electric boiler, along with the large solar heating plant that was built in 2016 and the flue gas condensation plant from 2019, these two new units will ensure climate-friendly district heating with high security of supply for many years to come.

Our biomass plant converts local organic material into district heating. At the same time, a synergy effect is achieved by thinking of heat production from biomass and electric heat pump respectively together. Normally the two plants are separate, but thinking of the plants together has a positive effect on the total heat production. Demonstration of this new solution is supported by the Danish Energy Agency’s EUDP program, and the project in Silkeborg is the first of its kind in Denmark, said Jens Dall Bentzen, Director of Dall Energy.

We are very happy about the collaboration with Silkeborg Forsyning, which has arisen through a thorough and constructive dialogue. We must work together to find solutions, and the project with Silkeborg Forsyning is clear evidence of how the technologies behind the various energy solutions are not in conflict with each other, but on the contrary, can lift each other up, Jens Dall Bentzen said.

Both new plants will come into operation according to plan and begin to produce district heating at the end of 2024.

The new 50 MW electric boiler is being tested this winter season and will subsequently be put into use and included in the district heating production.

It is more important than ever that we at Silkeborg Forsyning are not dependent on a few energy sources for our heat production. With the agreements on the biomass plant and the new heat pump, we are assured of a multi-string district heating supply where we can deliver efficient and competitive heat. The two new plants cooperate with our other plants so that we have very high security of supply for consumers today and in the future, said Søren Kristensen, Chairman of the Board of Silkeborg Forsyning.

A good deal for district heating customers

Currently, around 56 000 heat consumers in Silkeborg are supplied with district heating from Silkeborg Forsyning, and that number will increase in the coming years.

With the expansion of the district heating plant, Silkeborg Forsyning has taken a very big step towards its stated goal of becoming independent of natural gas as an energy source and also delivering carbon dioxide (CO₂) neutral district heating by 2030 at the latest.

That objective was presented in 2016. When the new heat pump and the new biomass plant are put into use at the end of 2024, together with the electric boiler, they will be able to produce district heating with a fossil CO₂ reduction of approximately 83 percent compared to 2016.

The various sources of district heating production will also mean that Silkeborg Forsyning is better prepared against volatile price increases on individual energy sources. District heating production becomes more flexible, as one can switch to energy sources that make the most sense.

With several energy sources, we have a very flexible heat production, where the different energy sources can be used when they make the most sense for consumers. We have a clear goal of delivering CO₂-neutral district heating in 2030, and the contracts entered into are a very important step on the way forward in the green transition in Silkeborg Forsyning, Søren Kristensen said.

The investment is also good news for district heating customers. The new technologies are estimated to save Silkeborg Forsyning an expenditure of just over DKK 500 million (≈ EUR 67 million) over a period of 20 years.

Seen in relation to a situation where the production of district heating continues at the current facilities, the district heating consumer saves an average of around DKK 1 500 (≈ EUR 201) per year on district heating with the new, climate-friendly technologies.

With the projects with Dall Energy and Exodraft Energy, we have assembled a strong team to help us take a very big step forward towards climate-friendly district heating from Silkeborg Forsyning. Looking ahead to 2028, we are also looking forward – if possible – to welcoming around 12 000 new district heating consumers, this requires greater heat production. With the new systems, new and existing customers will look forward to continuing to receive future-proof, comfortable, and competitive district heating. The project group has done a great job, which has thus created a good understanding and good cooperation on the projects. It provides a good basis for achieving safe project implementation when we have to build – as well as a good implementation of the new solutions in our operations, ended Jens Bastrup, Managing Director of Silkeborg Forsyning.