During 2026 and 2027, approximately 1,300 households and 4,350 inhabitants in six small towns in Varde Municipality can look forward to having green district heating installed and finally say goodbye to natural gas and other fossil fuels. This is due to a unique project led by turnkey contractor Aalborg CSP. The company's task is to design and build six heating centres to provide Helle Energi A.M.B.A.'s consumers with district heating at a price that is more attractive than that of alternative heating sources.

The project is a good example of how it is possible to meet the government's goal of spreading district heating throughout the country and significantly reducing the use of fossil fuels, says Aalborg CSP. The company will be responsible for the establishment of the six heating centres and central control, including all technical installations, heat pumps, peak load boilers and buildings in collaboration with partners and local contractors.

- The project with Helle Energi is unique because we are building six small heating centres, even though there are relatively few inhabitants in the smaller towns. Similar projects can be rolled out in many other places in Denmark. It just requires thorough preparation and analysing the specific needs for small, local plants. The six towns under Helle Energi get what they need, and when all prices and solutions have been optimised, it is actually possible to build small district heating plants at a price that is affordable for the residents, says Head of Projects & Engineering, Renewable Heating at Aalborg CSP, Klaus Knudsen, and continues

- Of course, it is important to have a competent advisor, but what is especially important is that the Helle Energi board consists of enthusiastic volunteers who are thoroughly familiar with the issues and have technical expertise that is not commonplace.

The board of Helle Energi A.m.b.A, which covers the villages of Nordenskov, Agerbæk, Fåborg, Næsbjerg, Årre and Starup-Tofterup, has high expectations for the new district heating solution, as getting rid of natural gas has long been a goal.

- For a newly established utility company like ours, without an actual organisation in place during the design phase, good and trusting collaboration, knowledge sharing and sparring with technical and commercial advisors, contractors, financial partners, authorities and not least colleagues in the industry is crucial for a successful and sustainable project. In the process of contracting our heating plants, which were put out to tender as a turnkey contract, we experienced great kindness, patience and openness to constructive dialogue about savings and budget in the negotiations with Aalborg CSP. At the same time, we wanted state-of-the-art technology and the cheapest possible heat production price in relation to our and consumers' expectations of efficient, flexible and durable solutions that ensure a future-oriented foundation. Aligning expectations with these criteria has been one of the most important things for us and we see it as a fundamental prerequisite for a successful process - fortunately, Aalborg CSP has contributed positively to this," says Lars Krusborg Jakobsen, Chairman of Helle Energi A.m.b.A.

Bad examples scare consumers

In recent years, there have been several stories in the media about district heating projects that have either been shelved or have been far more expensive than consumers expected. The much-publicised project in Odsherred is among the latest examples of projects that have gone off the rails. Stories like this make many consumers wary because they are afraid of being left with a big bill.

- It's understandable that some consumers are concerned when they hear about projects that have turned out far more expensive than they had anticipated. But I am convinced that it is possible to set up small heating centres in small towns if you investigate things thoroughly from the start and dimension the plants according to the exact needs of each individual area. Our collaboration with Helle Energi clearly shows that it is possible to supply district heating to smaller communities, says Klaus Knudsen, who emphasises that he has no in-depth knowledge of why the project in Odsherred or elsewhere has led to dramatic price increases.

- Of course, we also feel that confidence in the district heating sector in general is suffering as a result of some very controversial cases around the country - and in addition to that, a very unclear political communication creates doubt about the continued use of natural gas and biogas for our home heating. We can only gain consumer trust by being transparent and trustworthy, which is why we want an outcome that is mutually beneficial and valuable to our local communities. The more people we connect to district heating and contribute to the community, the more robust and efficient we will become, says Lars Krusborg Jakobsen.

In general, it's all about doing the right project at the right price and making sure that consumers in a given area are not presented with expensive solutions that they don't really need, says Aalborg CSP.

- Credibility and transparency are crucial if district heating is to be successfully rolled out across the country. And when you look at the project in Varde Municipality, where consumers have been guaranteed a fair heating price, it is a clear example of how it is possible to create a future-proof solution for the benefit of consumers, says Klaus Knudsen. 

For further information, please contact:

• Klaus Knudsen, Head of Projects & Engineering, Renewable Heating at Aalborg CSP, e-mail:kkn@aalborgcsp.com or phone: +45 31 43 40 60.
• Lars Krusborg Jakobsen, Chairman of the Board of Helle Energi A.m.b.A., e-mail:formand@helle-energi.dk or phone: +45 24 48 11 20.