1. District Heating in Kisa 2011-08-25 Participants Lars-Ove Gustavsson Product Manager

2. 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

3. 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.

4. Linköping 140.000 inhabitants The 5 th city in Sweden Tekniska Verken A municipality owned multi-utility company with a regional market strategy

5. Brief facts 2010 71,000 customers in Linköping 280,000 customers in total 977 employees Sales: 620 million Euros Investments: 67 million Euros

6. 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

7. The Tekniska Verken Group

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

9. Investments 1999-2011 Tekniska Verken Group Million EUR Exchange rate: EUR/SEK 9,26

10. 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

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

12. Tekniska Verkens heating sales 2010 CityAmount of customersHeating sold (GWh) Linköping11 9151 530 Borensberg24415 Skärblacka27918 Kisa14885 Åtvidaberg10536 Katrineholm1 262224 Heating sold = District Heating + Steam

13. District cooling in Linköping

14. 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

15. History fact about District Heating in Kisa  The Municipality in Kisa started building the District Heating in Kisa 1982.  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

16. 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

17. District heating in Kisa Kisa Local District Heating with biofuel

18. Heating sales in Kisa 20102009200820072006 Power MW3230262422 Customer1481321199651 Energy, District Heating and Steam, GWh 8578656760 Energy steam, GWh6560515548

19. 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

20. 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