Energi & Forsyning

Energi & Forsyning supplies clean drinking water to around 26,000 households in Randers, and district heating based on certified sustainable biomass to around 38,000 households in Herning and 38,000 households in Randers.*

EL-NET Kongerslev will also be part of the division from 1 January 2023. This unit connects about 870 households in Kongerslev to the electricity grid.

Varme Randers and Varme Herning

Verdo has been working for years to expand district heating into new areas, and convert existing areas from natural gas etc. But district heating moved up greatly on the political agenda in 2022 due to the energy and supply crisis. It will also play a key role in relation to sector coupling and expanding green energy production in the coming years, and will thus be central to the green transition of Denmark.

The government wants to phase out natural gas in Denmark – to advance the green transition, and because the war in Ukraine has sent natural gas prices soaring at times. Combined with uncertainty about whether there is enough natural gas available, this has caused the demand for district heating to explode.

- In relation to Verdo’s district heating areas, the interest in district heating has been particularly overwhelming in Randers. But both Randers and Herning had record years in 2022 for Verdo Varme. A total of 1,265 new customers were connected, exceeding the ambitious goal of connecting 1,000 new customers during the year.

- Natural gas conversions in the Sdr. Borup and Alsvej industrial areas near Randers are close to completion. Over 110,000 square metres of commercial floor space were connected to district heating.

- Natural gas conversions in Over Hornbæk and Neder Hornbæk, on the outskirts of Randers, have also exceeded expectations. The goal for the year was to convert 250 houses. We were slightly behind this during Q1-Q3 2022. But a strong finish in Q4, with 190 conversions, put us far above the target. A total of 370 houses were converted from natural gas to district heating in these two areas alone.

In 2022, projects were also outlined for the conversion of two more towns near Randers: Romalt and Stevnstrup.

- In Herning, a natural gas conversion project was planned in 2022 for the industrial area at Taksvej. This is expected to be physically completed in 2023.

- A large remote meter reading project was also completed in Herning, under an EU tender. Most district heating meters were changed, and a radio network was established to collect data, making it possible to read all of Verdo’s 21,000 district heating meters remotely. The project is expected to be complete in mid-2023, and is currently on time and within budget.

- Plans were also made in 2022 for a large new heating plant at Gødstrup in Herning. The heating plant is necessary in order for Verdo to supply the many upcoming developments south of the new regional hospital in Gødstrup. The plant is expected to be built in 2023.

- There has been high security of supply and stable operation throughout 2022 in both Randers and Herning. District heating prices have also been lower for customers than the national average in both towns. Unfortunately, fuel prices soared at the end of 2022, leading to rising prices in 2023.

- There was a strong focus throughout the year in Verdo Varme on building an organisation to plan and implement the many district heating conversions in Randers. A major shortage of district heating project managers and soaring prices for pipe materials and earthmoving and welding contractors made it difficult to implement natural gas conversions and connect newly built houses at this time.

- Verdo has focused in 2022 on planning what the future heat supply should look like – both in Herning and Randers. The work is ongoing under the title ‘Energy of the future’. The existing CHP plants in both towns are expected to be phased out during 2034-2036. In collaboration with Verdo Produktion A/S, a working group is therefore analysing all known and future heating options. It aims to have a complete plan for phasing in the new green technologies that will produce the future district heating ready by 2025. Verdo Varme is negotiating with Ørsted in parallel about a change to the current collaboration, based on the heating contract we have with Ørsted until June 2034. We will seek to combine our desire to produce much of our future energy and district heating at our own renewable energy plants with a contract extension with Ørsted, whereby Herning CHP plant continues operation until 2044.

Water and Digital Supply

A desire for better customer service and more efficient workflows has led to a higher degree of digitalisation in supply operations in 2022. Digital projects that improve customer experiences are expected to gain momentum in 2023 and beyond.

- The framework for the digital infrastructure at Verdo was set in 2022. Models were devised, tested and systematised, and many employees underwent ‘Digital Masterclass’ training in collaboration with DI2X, so the organisation is equipped for its digital journey.

- Several digital projects were also launched during the year, including a project to improve customer service and better utilise district heating at the customer.

- In 2022, Verdo Vand A/S had a strong focus on finding a new spring site to replace the Oust Mølle spring, and a new waterworks to replace the Bunkedal and Østrup Skov waterworks. A permit has been granted to build a new waterworks east of Randers, and work will continue on the project in the coming years.

- An operating agreement has also been reached with Dronningborg Waterworks, and Verdo Vand A/S entered into a joint development project with AAU/Grundfos concerning solar cell and tank operation.

RATIOS: Energi & Forsyning

The table covers: Verdo Produktion A/S, Verdo Varme A/S, Verdo Herning A/S, Verdo Varme Herning A/S, Verdo Vand A/S, El-NET Kongerslev A/S and Verdo Forsyningsservice A/S.

Production

- 2022 saw extraordinarily high electricity prices, leading to high revenue and thus record earnings for Verdo Produktion A/S, which produces power at the CHP plant in Randers.

- There has been a strong focus throughout the year on security of supply (leading to more emergency planning) and on optimising electricity production and efficiency.

- The plant on Bronzevej in Randers was rebuilt in 2022 to also support a booster role, which will add to the heat supply southwest of the E45 motorway.