Dong Energy reports that TVIS has chosen DONG Energy as negotiation partner on heating supply from a new biomass-fired CHP plant, involving a projected capital investment of DKK 1.8 billion.
An unanimous TVIS board decided that DONG Energy’s offer for the project on a new biomass-fired CHP plant is the most advantageous offer for the citizens in the Triangle Region. “We have received two good and serious offers and face an exciting future with the choice of DONG Energy as negotiation partner. We’re one step closer to ensuring the consumers in the Triangle Area a sensible balance between price, reliability and environmental considerations,” said Hans Bjørn, CEO of TVIS.
The Triangle Region is a Danish governmental economic initiative which began in 2000 and established a sub-region of municipalities in the center of Denmark, principally in Jutland, but with the inclusion of Middelfart on Fyn. The population of this region is approx. 350,000.
Currently, the total TVIS heat transmission system consists of nearly 80 kilometres of double pipe lines with five pumping stations and 47 exchange and valve stations transmitting heat from the production plants to the local district heating systems in the four municipalities. The local district heating companies distribute to approximately 55,000 consumers of domestic heating including institutions and businesses. TVIS´ heat capacity is approximately 6000 TJ per year.
TVIS and DONG Energy entered into negotiations on a supply agreement on district heating while developing the project. The negotiations between TVIS and DONG Energy will result in a final decision on the investment of approximately DKK 1.8 billion in June 2014.
The TVIS board and the city councils of Fredericia, Vejle, Kolding and Middelfart were presented with a professional expert assessment of the offers which turned out to the advantage of DONG Energy on price and reliability of supply.
District heating companies on standby
In April, TVIS received the offers from DONG Energy and the consortium 3KV, which consists of seven district heating companies within the Triangle Region. 3KV offered a suggestion of constructing a new biomass-fired CHP plant in Kolding, while DONG Energy would retrofit Skærbæk CHP plant in Fredericia to be able to use wood chips with gas as backup fuel.
The decision also means that the offer from the consortium of district heating companies, 3KV, has been put on standby. They are bound by their offer until 2 December 2013, if the upcoming negotiations with DONG Energy turn out to be non-executional.
TVIS will invest 80% of the construction costs and obtain the right to the heat capacity from the CHP plant. It has been a requirement to the tenderers that the price on district heating in the Triangle Region will not be affected by other than the costs for the production of heat.