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A.P. Moller predicts a bright future for geothermal energy

By State of Green, June 22, 2018

Geothermal energy has the potential to cover 30 percent of the demand for district heating in Denmark, A.P. Moller Holding believes.

As a sustainable and secure energy source, geothermal energy has the potential to cover 30 percent of the Danish demand for district heating, which is equivalent to the heating consumption of 500.000 households. This is one of the conclusions from A.P. Moller Holding, who are examining the opportunity to introduce geothermal energy on a bigger scale in Denmark. A.P. Moller Holding is the investment arm of the A.P. Moller Foundation, the foundation behind transport and logistics company A.P. Moller – Maersk, by far Denmark’s largest company by turnover.

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“We believe that geothermal energy could do for heating what wind does for the green transition. For consumers, geothermal energy means green heating in the radiators, just as wind provides green electricity in our sockets. For society, geothermal energy means that at big, sustainable energy resource is brought into play so that, with time, coal can be phased out from the heating supply. Geothermal energy can deliver heating energy from the subsoil every day, every hour, year around, despite the lack of wind or sun”, said Samir Abboud, who is responsible for geothermal energy in A.P. Moller Holding. He continues:

“Geothermal energy could play an important role in Denmark. There is still no guarantee for success but the potential is so interesting for the Danish green transition to renewable energy that we need to give it a try.”

A.P. Moller Holding has worked with geothermal since the beginning of 2017. There are already three small geothermal energy plants in Denmark but the A.P. Moller Holding model is different from the existing ones in a number of areas.

“First and foremost, we would work with geothermal energy on a large scale, so that we will bring down the costs and be able to offer geothermal energy at competitive prices to the district heating companies and to the consumers. Moreover, we can see that cross-disciplinary competences are a determining factor for succeeding in big, complex and capital-intensive subsoil projects. We have obtained those competences through a number of years across the world”, said Samir Abboud.

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A.P. Moller Holdings’ business model means that A.P. Moller Holding takes responsibility for the investigation, establishment of facilities and the operations. If something does not live up to expectations, consumers won’t foot the bill.

“It is crucial that those who possess the competences also have the responsibility. Our model is really quite simple; we deliver hot water to the district heating companies who then distribute it to the consumers. Therefore, everyone does what they do the best”, Samir Abboud explained.

A.P. Moller Holding have signed a strategic partnership agreement with Danfoss, who are experts in district heating systems, with the objective to achieve the optimal utilisation of geothermal energy:

“We are very pleased with the A.P. Moller Holding partnership and the perspectives in pursuing the opportunity to exploit the big potential in geothermal energy, and in that way securing sustainable district heating. According to a new study from the International Agency of Sustainable Energy, IRENA, geothermal energy heating is one of the most cost-effective ways to reduce the CO2 emissions,” said Lars Tveen, President, Danfoss Heating.

– Source: Energy Supply

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