In Sweden municipal energy utility Trelleborgs Energi AB has signed a collaboration agreement with energy services provider Adven Sweden part of Adven Group (Adven) stating that Adven will produce all district heating in Trelleborg, the country's southernmost city, over the next 20 years. Adven will take over the ownership of existing production sites and build new plants needed to cover the growing need for renewable district heating as the city grows and the network expands.
Trelleborgs Energi AB is a newly formed municipal utility company in which the city’s district heat, electricity, and broadband distribution, and infrastructure were amalgamated into one company while outsourcing production.
This is a clear win-win situation. Even though we have done a good job ourselves when building and expanding our district heating operations in Trelleborg, we can’t compete with bigger actors. The new Adven/Värmevärden Group operates about 50 district heating networks in Sweden and has through that a much better fuel procurement, a more effective on-call duty organization, and last but not least a whole other level of technical expertise that what we can’t maintain in Trelleborg. This means that Adven can produce and develop a sustainable district heating much more cost-efficient than what we could do ourselves. With this agreement we secure a continuously attractive district heating price for our citizens, explained Magnus Sahlin, CEO of Trelleborgs Energi.
Along with the responsibility for the sales and market development, Trelleborgs Energi also continues as the owner of the distribution network. This means that the company to a greater extent than before will be able to focus on customer and market aspects.
With strong experience and local presence in the region, we are happy to get to develop the district heating in Trelleborg together with the municipality, it’s good for us and for the end customers. We are especially proud of the fact that Trelleborg Energi has set requirements to develop the district heating to become 100 percent renewable. Realizing high sustainability ambitions is very much in line with our strategy. We look forward to building a local organization supported by the expertise we hold within the group, said Henrik Johansson Casimiro, CEO of Adven Sweden.
New bioheat plants
As soon as the cooperation with Trelleborgs Energi comes into force, Adven will begin the construction and implementation of a new 10 MW bio-oil heat plant. Further, by 2025 at the latest, a new 15 MW woodchip-fired heat boiler will be in operation.
We are happy that the municipality of Trelleborg has chosen us in their long-term work to continue to develop sustainable district heating for their citizens. It shows our strength as a new combined group and as a leading supplier of district heating and industrial energy solutions. We have a long experience of collaborations with municipalities in different forms, and this shows that the path we have chosen gains trust and is successful, said Anders Ericsson, Group CEO of Adven and Värmevärden.
The capacity expansion is needed to meet the growing need for heating in the municipality.
I am pleased to have a company like Adven investing in our municipality and believing in Trelleborg. The agreement has big benefits for the municipal residents, ended Mikael Rubin, Chairman of the Municipal Board in Trelleborg.