Palencia will launch a biomass heat network for 10,000 homes

DH Eco Energías has promoted the implementation of a new heat network in Palencia . For its development, DH Eco Energías has contracted the services of Engie España , which will carry out the technical development of a new urban heat network, as well as the facilities of the thermal energy production plant in the city of Palencia, promoted by DH Eco. Energies.

The network will be powered by biomass as a renewable energy source. This new project will benefit around 10,000 homes to which it will supply thermal energy for hot water and heating use in Palencia. The thermal generation plant will be designed and built in three phases depending on the extent of the network and demand, with a biomass (wood chips) solution and additional natural gas boilers to ensure security of supply in emergency situations for peaks and support, reaching a total final capacity of 28 MWt.

This project will allow a saving of 26,275t of CO ₂ per year, which represents a 93% reduction compared to a current conventional fossil fuel solution.

DH Eco Energías has created a “special purpose entity” (EFE) to finance the project with an investment of 25 million euros. DH Eco Energías and Engie will invest as a shareholder of the EFE, with Engie being the main technical contractor (except in civil works) for the following parts: installation of the thermal energy production plant using biomass through a contract under the EPC modality (Engineering, Purchasing and Construction); network extension works; the management of technical assets; and Operation and Maintenance (O&M) activities 

For its part, DH Eco Energías will supervise the technical work and will be in charge of all management of the operation and marketing of the network. 

Work on the plant and first connections are planned to begin in summer 2021 and be completed in autumn 2022. Full commissioning will take place during the winter of 2022-2023, with further developments to reach 22 km of extension network in 2024.

As the CEO of Engie Spain, Loreto Ordóñez, has highlighted, “this urban energy network project is essential and key when it comes to ensuring that cities effectively address the challenge of decarbonization, that is, reducing their environmental footprint. , optimizing your energy supply. Without a doubt, a green future for cities involves promoting these technologies.”  

Teo López, CEO of DH Eco Energías, considers that “energy alternatives for heating and DHW of buildings in cities involve optimizing and concentrating the generation of renewable energy in points of the city, far from buildings with the capacity to supply the total demand, with objectives of energy efficiency and elimination of greenhouse gases and reduction of pollution. “Palencia will be a city model to be replicated in all the large municipalities of Spain”