District Heating in Kisa Participants Lars-Ove Gustavsson Product Manager

Agenda  Presentation of Tekniska Verken AB  History of District Heating in Kisa  Samarbetet med Södra Timber  Swedish Tissue paper mill in Kisa  In the Future  Questions

Tekniska Verken - a Swedish regional energy company -TVAB - high level of expertise and cutting edge of environmental technology. - Energy plants - strict environmental requirements. - Constant efficiency improvements of plants to reduce environmental impact. -By using waste and bio fuels - reducing fossil CO 2.

Linköping inhabitants The 5 th city in Sweden Tekniska Verken A municipality owned multi-utility company with a regional market strategy

Brief facts ,000 customers in Linköping 280,000 customers in total 977 employees Sales: 620 million Euros Investments: 67 million Euros

Tekniska Verken i Linköping AB - a Multi-Utility Company Electricity production Electricity distribution Electricity sales District heating/District cooling Waste management Biogas Drinking water and waste water Communication technology

The Tekniska Verken Group

Turnover 1997 – 2011 Tekniska Verken Group Exchange rate: EUR/SEK 9,26 Million EUR

Investments Tekniska Verken Group Million EUR Exchange rate: EUR/SEK 9,26

Division Energy Produces and supplies district heating and cooling, as well as electricity Production facilities: –The Gärstad plant and 3 district heating power plants –38 hydropower stations District heating to more than 90 percent of the households in Linköping Also supply district heating to Katrineholm, Borensberg, Kisa, Skärblacka, Åtvidaberg and Mjölby- Svartådalen Energi District cooling to companies

Regional district heating one of the longest district heating pipelines in Sweden, 28 km

Tekniska Verkens heating sales 2010 CityAmount of customersHeating sold (GWh) Linköping Borensberg24415 Skärblacka27918 Kisa14885 Åtvidaberg10536 Katrineholm Heating sold = District Heating + Steam

District cooling in Linköping

Division Energy Recycle and process waste and operate landfill sites on behalf of householders and industrial operations Recycling centres: –Gärstad, Ullstämma and Malmen in Linköping –Vika in Katrineholm The Gärstad plant: 390,000 tons of sorted waste per year Waste from around 30 other municipalities Less than 5 percent goes to landfill

History fact about District Heating in Kisa  The Municipality in Kisa started building the District Heating in Kisa  A Production unit with biofuelburner 1,2 MW, oilburner and a electricity at Värgårdskolan.  Vattenfall bought the District Heating from Kisa Municipality 1994  Vattenfall made an agreement with 3 new customers  After that nothing happened  It was a bad business for Vattenfall  They had to much oil in the heating production, it was 50% oil and 50% biofuel.  Vattenfall also had the steam production in Swedish Tissue

History fact about District Heating in Kisa  Tekniska Verken bought the District Heating from Vattenfall in 2005  At the same time we bought the Incinerater at Swedish Tissue.  We started working with the problem in Kisa  We looked at three ways to get more biofuel in the fuelmix.  At the same time Södra Timber contacted us  Södra Timber begin deliver heat water to the District Heating in 2007  After 2007 more then 95% biofuel in the District Heating

District heating in Kisa Kisa Local District Heating with biofuel

Heating sales in Kisa Power MW Customer Energy, District Heating and Steam, GWh Energy steam, GWh

Economic means of control in Sweden ”Whip” CO 2 tax on fossil fuels Energy tax on fossil fuels Sulphur tax on fossil fuels Taxes on electricity NO x fee CO 2 emission trading ”Carrot” Electricity certificates

Double means of control regarding CO 2 The Swedish government significantly wants to reduce CO 2 -emissions outside EU ETS and in the energy sector Almost no allocation to the energy sector this period, the next ? Not possible for TVAB to get allotment for the extra emissions related to the new production line at SwT Lower repayment of CO 2 tax for heat delivery to industry, e.g. higher tax Lower CO 2 tax for industry inside EU ETS This puts us in a difficult spot