The city of Kremenchuk from above.
Ukraine’s district heating sector is one of the largest in the world, but the infrastructure is getting deteriorated as most of it was built during the Soviet times. In addition to the ageing assets, there is also a challenge related to energy efficiency and the extensive use of fossil fuels generating an extremely large amount of CO2 emissions.
Thereby, a gradual modernisation of Ukraine’s district heating network is required to maintain energy security and reliability, and to provide consumers with cleaner resources to heat their homes.
Denmark is a leading example in using modern district heating networks for low-carbon heat generation with 100% renewable resources such as domestic waste or surplus heat. The Nordic country not only serves as a great source of inspiration, but also as an investment platform for Ukraine’s district heating network rehabilitation.
A new collaboration between Danish Danida Sustainable Infrastructure Finance (DSIF) and The Nordic Environment Finance Corporation (NEFCO) will contribute to the rehabilitation of Ukraine’s city of Kremenchuk. The investment comprises a EUR 4.45 million grant from DSIF, financed by the Ministry of Foreign Affairs in Denmark, a EUR 6 million loan from NEFCO, and the city’s own contribution of approximately EUR 2.25 million.
Based on a feasibility study, the rehabilitation project includes among many systemic improvements, the installation of a 4 MW biomass boiler utilising the available local resources, the construction of new gas boilers, the replacement of the distribution and transmission pipes and the installation of a new central remote control system and 122 new individual heat substations.
The improvements of approximately 44 MW of district heating capacity correspond to a reduction of 10,500 tonnes in CO2 emissions. 25,000 citizens will benefit from the rehabilitation project which covers ten per cent of the city’s district heating customers.
The project is also actively contributing to UN’s SDGs, addressing good health and well-being, gender equality, affordable and clean energy, and climate action.
Ramboll has prepared the feasibility study for DSIF, providing the justification for the loan and grant, and outlining the technical, environmental, and financial evaluation of the project. Now Ramboll will work with the City of Kremenchuk over the next two years to realise the project through development of technical specifications, tender documents, contractor procurement and construction supervision.
“We are happy to be part of this project that will provide the city of Kremenchuk with a more modern district heating network and more advanced technical approaches, such as energy storage. This will have an incredibly positive impact on the citizens, who will have better control over their energy consumption and heating bills while gaining access to a more sustainable and energy-efficient infrastructure”, says Isidore McCormack, Chief Project Manager at Ramboll.
Ramboll is also currently involved in other district heating rehabilitation projects for the cities of Zhytomyr, Kiev, Lutsk, Chernivtsi and Horishni Plavni.