Denmark to host EU's largest geothermal heating plant in Aarhus

Geothermal-based heating company Innargi, a subsidiary of A.P. Moller Holding, has signed a 30-year agreement for the development and operation of what will be the EU's largest geothermal heating plant in Aarhus, Denmark.

With buildings accounting for 13% of EU greenhouse gas emissions - around 432 million tonnes every year - geothermal heating presents an opportunity for decarbonisation.

With large-scale geothermal plants, millions of homes and workplaces can be heated with green energy, and it is also not dependent on weather conditions like wind and solar power. By replacing hydrocarbon-based heating systems with geothermal energy, the average household would cut its carbon footprint by around six tonnes per year.

Read more: Breakthrough for climate-friendly heating with hydrogen

"It is critical to rethink our heating sources and bring geothermal into play when planning the future energy mix. We see a huge potential for geothermal based heating in many European cities that are struggling to phase out coal to meet the climate targets. We believe countries like Denmark, Germany and Poland offer the right subsurface conditions to significantly reduce the need for coal, gas and imported biomass," said Samir Abboud, CEO at Innargi.

"Today’s announced 30-year agreement is an important first step of our journey. We are very glad to see the strong support from the Danish government and Aarhus municipality, including the trust in our team and technology, to develop, what will become, EU’s biggest geothermal based plant," he added.

Geothermal energy originates in the Earth's core. In a location such as Aarhus, water will be extracted via a production well from a depth of 2-3 kilometres below the surface at a temperature of 60-90°C.

When it reaches the plant on the surface, heat pumps will harvest the water's heat and it will be transferred to the district heating network. The cooled geothermal water is then pumped back to the subsurface using an injection well.

Innargi has described the technology as offering an opportunity to provide a truly sustainable and circular form of energy.

Read more: EU enters final stages of geothermal energy production & metals extraction project

The municipality of Aarhus has a population of 330,000 across 180,000 households. 95% of the households are connected to the city's heating system. The Aarhus geothermal heating plant has a planned capacity of 110MW, around 20% of the city's heating demand. It is expected that annual CO2 emissions will be cut by as much as 165,000 tonnes. 

The proposed plant is still subject to an appraisal process, but if it goes ahead it is scheduled for completion by 2029, with an expected operation of at least 30 years. 

"This is a historic day for district heating. I am proud to make heating greener for the citizens of Aarhus. Geothermal energy marks a significant step in our endeavours to turn an increasing amount of energy into sustainable district heating," said Bjarne Munk Jensen, Managing Director of the city’s district heating company, AffaldVarme Aarhus.

"Geothermal energy is a precondition for reaching our goal in 2030 of phasing out imported wood pellets." 

Read more: Geothermal sector urges EU to create internal heat market

Innargi was founded by A.P. Moller at the end of 2021. The company raised capital from ATP, Denmark's state-owned and largest pension fund, and Danish utility company, NRGi.

"The A.P. Moller Group holds extensive historic experience of large-scale subsurface projects. A few years ago, we divested our oil-related E&P activities. We founded Innargi to bring these competencies into play for the benefit of the energy transition," said Robert M. Uggla, CEO of A.P. Møller Holding.

"We see great opportunities for Innargi to develop green district heating for Aarhus and millions of homes in other cities in Europe." 

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