Case

Excess heat utilisation – a bankable solution

A few years ago, the city of Benxi vanished in smog. Now, the old steel capital of China can breathe again.

Implementing an advanced district heating system in corporation with Danfoss has reduced annual coal use by 26,500 tons. This has reduced emissions of 69,000 tonnes of CO2 plus massive amounts of NOx and SOx and Benxi has become a model city for excess heat utilisation. In addition, the advanced Danfoss control equipment has led to increased heat supply stability, which means higher comfort for end users.

The surplus heat system includes 40 Danfoss heat exchange substations and is planned to cover 7 million m2 this autumn. To finance the project, a framework agreement was made between Liaoning Environmental Protection  Department, Benxi City Government, Bengang Group and Danfoss in 2014. Liaoning Environmental Protection Department provided the start-up funding of EUR 1.2 million for the project. Turning an annual loss of EUR 2.4 million into a revenue of EUR 206.000 and EUR 607.000 within the first two years respectively, the project has proved fully bankable and commercially viable.

 

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