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THE PROPOSITION PART 3/3 HEAT TRANSITION PART III – RESIDUAL HEAT AND STEAM Steam and heating networks may be a major cornerstone for the sustainability goals of municipalities in the North Sea Canal region (NZKG in Dutch). May be, because the road towards them has not been clearly laid out.... TEXT: CEES VISSER Proposition The differences in interests are too great to make steam and heating networks a success in the NZKG. Gerard Jägers, programme manager for energy efficiency at Tata Steel: “There are major shared interests as well. We share concerns about the climate, the end of the Dutch gas bubble, and the environment. We are also looking for economically attractive options. This means that the foundations are solid. I think there should be a district heating company that can bridge the differences in interests. It should manage an open network which can offset supply and demand; both in the short and long term. I see covenants on heating in the IJmond region and the covenant for heating/cooling in the MRA (Metropolitan Region Amsterdam) context as a step towards an eventual heating company that can connect the supply and demand in (at least) the entire MRA. It would be great if the start of a heating network would involve a limited number of parties to better address the ‘chicken/egg’ issue. This would make it easier to bridge the different interests. As soon as a core of a heating network has been established, the next step is much easier to take. After all, it involves major infrastructure projects. The Dutch Heating Act could also be made more attractive. Currently aimed at protecting end users when buying from a heating company, it would be useful if the suppliers also had some assurances from the government as well. There are obviously different interests at play in the heating chain, but these can be resolved in a normal way. To my surprise I recently discovered that the MRA already has the largest heating network in the Netherlands, so I believe there is no reason why a successful network couldn’t be developed here.” 34 <strong>AMSTERDAM</strong> SEAPORTS 2016
Jan van der Meer, programme director Amsterdam Economic Board: “26 parties in the MRA have signed a cooperation agreement to make a success of heating in the region. This means that we aim to expand the current heating networks, realise new ones and eventually connect them to create a robust, efficient, smart, open, affordable and sustainable regional system. The goal is to have up to half a million home equivalents (in the MRA) connected to a heating network by 2040. The existing networks are supplied with heat from the waste processing plant of AEB Amsterdam and the gas-fired Diemen plant. The plan is to also use the residual heat from Tata Steel and the industry in Zaanstad. This is currently being researched. At this stage everything is focused on preventing the waste of residual heat, but in the long term the goal is to replace fossil resources with sustainable ones. This would involve geothermal heat, biomass and the use of low-temperature heat from sewage treatment plants and data centres. There are various interests at play, but the fact that so many public-private parties are backing the aforementioned goals says a great deal. Although we are on track, a large scale rollout of the regional heating network can only be realised with the support of the national government. A social cost/ benefits analysis showed that a regional heating network would be ten times cheaper for society than all individual measures combined. No economic business case has been developed as yet because the benefits end up in another place than the costs. There is a clear case of market failure here, which justifies action by the government. Especially as we have to step away from natural gas, for various reasons: with the Paris Climate Agreement we are saying goodbye to fossil fuels, we want to avoid further natural gas earthquakes in Groningen, and we don’t want to be dependent on gas supplied by Putin. In addition, the natural gas grids need replacing. The question is whether we should be performing replacements knowing that the natural gas will run out or will no longer be desirable during the depreciation period. In short: we need to stop relying on gas. The national government can make a considerable contribution by socialising the costs of transport grids – which would reduce SERIES In each part of this three-part series an energy expert considers a proposition related to alternative energy sources in the NZKG. While the first part focused on alternative fuels (ZHA-05/15; see www.amports.nl), the second discussed a stance on sustainable energy (ZHA- 06/15). This third segment concludes the series with a proposition on industrial residual heat and steam. the cost price – and increasing the price of gas – which would stimulate parties to switch to heat. This should be combined with compensation measures for tenants with low incomes and horticulturalists who have no alternative available. In short, we have a collective solution to a collective problem and a social business case that is of interest to everyone. I believe this will be the year of the ‘heat transition’.” Jeroen de Swart, CEO AEB Amsterdam: “There are in fact a lot of joint interests which could make the realisation of heating networks in the NZKG very successful. Since 1999 NUON and AEB Amsterdam have been working together in the joint venture Westpoort Warmte (WPW) involving the sale and distribution of heating to homes and companies in the west and north of Amsterdam. In order to realise this, WPW develops and operates an extensive infrastructure by means of a district heating network. Resources for district heating are our waste processing plants and bio-gas plant, the Waternet sewage treatment plant and the Orgaworld fermentation plant. This mix of sustainable resources means that no less than 70 per cent of the district heating realised by WPW is entirely climate-neutral. In 2015 there were developments in the realisation of a ‘city without gas’ in cooperation with the municipality. Heating will be a key technology in this framework, with AEB as a (major) resource, among others. Agreements with the municipality, building owners and the WPW will enable a further acceleration and continuation of the growth of the grid. The joint ambition is that some 230,000 home equivalents (companies and homes) in Amsterdam will be using district heating by 2040. A major step in this process is expanding the heating network to Amsterdam North by installing a 17-kilometre pipeline from AEB, via the Hemweg plants, underneath the IJ waterway and straight across the North district. The network for district heating in Amsterdam North should be fully operational by the end of 2016, when some 4,000 homes and/ or companies can start using the residual heat for heating and hot water supplied by AEB Amsterdam. At this time, the heating network has approximately 2,500 connections in the North district. With regard to steam supply to companies in the western port area, I also see no reasons why a steam network would not be successful. Steam from AEB is a sustainable alternative for gas-produced steam and is attractive financially. The installation of a steam system does require major investments, however. A precondition is that there are plenty of large companies in the processing industry (which use steam in their production process) in the area. It would be good if the location policy in the port region would look at which companies would complement each other in the area: a good mix of suppliers and buyers of alternative energy sources would certainly benefit the sustainabilisation of the region.” • <strong>AMSTERDAM</strong> SEAPORTS 2016 35
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