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What
is the District Energy Network and how does it work
in Sheffield?
District Energy provides buildings in Sheffield
City centre and the surrounding areas with a low
carbon energy source that is generated in a central
location, converted to hot water and pumped through
a network of underground pipes and delivered to
a heat exchanger in buildings of all sizes and types.
In Sheffield, the energy required for the District
Energy Network is recovered from incinerating the
city’s residual waste after recycling initiatives
(waste that is put in black wheeled bins).
Steam is generated from the incineration process
and passed through a turbine to generate electricity
for sale to the National Grid and/or converted to
hot water for the District Energy Network.
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How
big is the network and where does it reach to?
The District Energy Network in Sheffield is the
largest and most successful in the UK. There are
43km of pipeline installed across the city centre
reaching Netherthorpe, Western Bank, the Heart of
the City, Moorfoot and Park Hill. The network map
shows the extent of the network and highlights which
areas are lucky enough to benefit from district
energy. To view the network map go to: www.veolia.co.uk/sheffield
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Does
the price of District Energy go up faster than the
other alternatives?
The price of District Energy is index linked to
prices of alternative fuels for the duration of
the supply contract. Therefore it can only change
at the same rate as other fuels.
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What
if the Energy Recovery Facility (ERF) is closed
down by the Environment Agency?
It would take a major breach of the ERF’s
PPC Permit for this to happen and as Veolia have
the reputation of being the best ERF operator in
the UK this is highly unlikely. In the event that
the ERF was shut down for any reason there is over
100% back up via gas and oil hot water boilers.
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What
if there is a breakdown at the ERF?
In the event that the ERF is shutdown for maintenance
or repair then the gas and oil back up boilers are
used to maintain the District Energy supply. A strict
maintenance regime is in place at the ERF to minimise
breakdowns.
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How
does the District Energy Network compare to gas
in terms of CO2 emissions?
The District Energy Network emits only 0.0505 kg.CO2/kWh
of energy compared with gas which emits 0.194 kg.CO2/kWh.
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Does
the ERF meet the regulatory standards for emissions?
Yes. In fact the ERF has been designed to accommodate
future changes in emissions standards.
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What
happens if recycling rates increase and there’s
less fuel for the ERF?
If domestic recycling rates increase dramatically
then there will be less domestic waste for the ERF
but it will have a higher energy value which will
partly compensate for the reduction. The input requirements
of the ERF will then be made up by taking trade
waste, which would otherwise go to landfill.
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What’s
the long term strategy for Energy from Waste in
the UK and what is the Government’s view on
it?
The Government’s view is that energy from
waste forms one part of the solution for waste management
in the UK and that it is up to Local Authorities
to decide what the best waste management solution
is for them. In Sheffield, Energy Recovery is seen
as an important contributor towards Sheffield City
Council’s waste management strategy.
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Can
I retrofit heat exchangers to a building with a
boiler plant?
Yes and it is often a simple process although sometimes
boilers need to be removed to make space available
for the installation of the heat exchanger.
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Are
there grants available to support the costs of connecting
to the District Energy Network?
From time to time, grant based initiatives are created
by Central Government but they tend to have limited
lives and restricted eligibility.
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How
does connection to the District Energy Network help
me achieve BREEAM standards?
With a CO2 emissions figure of only 0.0505
kg/kWh a high credit score for CO2 should
be achieved. Additional credits will be gained due
to the low NOx emissions associated with connecting
to the District Energy Network. This together with
the credits gained for considering and connecting
to a low emissions energy source will generate enough
credits to improve a BREEAM rating by one level
and would significantly contribute to an Excellent
rating.
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What
happens if Veolia Environmental Services are bought
out?
In the unlikely event that Veolia Environmental
Services plc is bought out then the ownership and
operation of the District Energy Network would revert
to Sheffield City Council.
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How
does connecting to the District Energy Network help
me comply with Building Regulations?
The new Part L has a requirement that the building
performance meets minimum criteria for the conservation
of fuel and power. The calculation of building performance
includes a factor that recognises the type of fuel
used to heat the building. As District Energy has
a CO2 emissions factor significantly
lower than a gas fired heating system, it allows
designers and developers greater scope in the design
of the building at the same time as ensuring compliance.
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Why
is District Energy more environmentally friendly?
Not only do connected buildings contribute to making
Sheffield a cleaner place, businesses also avoid
the Climate Change Levy. When a connection to the
District Energy Network is made a building no longer
uses fossil fuel to provide heating so precious
resources are being conserved. Also the local air
quality improves as each building ceases to emit
combustion gases.
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Isn’t
energy recovery harmful to the environment?
All ERF’s have to operate to strict environmental
regulations. New legislation that came into force
in December 2005 means that the new ERF in Sheffield
will operate to strict emission limits and operational
parameters. The emission limits are equal to, or
better than, the limits to which power stations
operate.
Pollution prevention control systems installed allow
the operators to monitor how well the facility is
performing, and to ensure that emissions are kept
below permitted limits. Operators are monitored
by the Environment Agency and reports detailing
the performance of each facility are available on
a public register. You can also view our emissions
performance on this website: www.veolia.co.uk/sheffield
Energy recovery with District Energy as part of
an integrated waste management system helps to create
the best practical environmental option for Sheffield.
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Don’t
the environmental issues surrounding energy recovery
from waste outweigh the benefits of avoiding fossil
fuel?
No, we would require a method to dispose of residual
waste that cannot be recycled and energy recovery
is preferred over the use of landfill because there
is an opportunity to recover a valuable resource
- energy. In Sheffield we are generating heat and
electricity so the benefits are increased.
The key target for improving air quality in the
city centre is a reduction in NOx levels. When the
effect of the District Energy scheme is taken in
to account in avoiding the need for heating boilers,
there is a net reduction in NOx in the city centre.
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Is
it true that connections can only take place between
May and the end of September when the pipeline can
be shut down, causing logistical problems for construction?
Connections to the District Energy Network can be
made at any time of the year and at any time of
the day or night. The timing of new connections
is set to meet the needs of the customer and done
in such a way as to minimise any effect on existing
customers.
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The
payback period is very long with only marginal savings
against gas.
The payback period will depend on the cost of the
actual District Energy installation compared to
the alternative that would have been installed and
of course the differential in energy price. Our
success rate in gaining new connections would indicate
that acceptable paybacks are achievable.
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Doesn’t
an Energy Recovery Facility deter recycling?
It is evident from looking at other countries that
utilise Energy Recovery Facilities as part of an
integrated waste management system that they do
not deter recycling. Switzerland incinerates 45%
of its waste and recycles 42%. There is evidence
to suggest that cheap landfill has more to do with
low recycling rates than the availability of energy
recovery facilities.
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How
much energy do you create through energy recovery?
The ERF can generate up to either 60MW of thermal
energy for District Energy or 19MW of electrical
energy for the National Grid. What other towns &
cities in the UK have a District Energy Network?
Southampton, Nottingham and Lerwick have extensive
District Energy Networks. Other places such as Leicester
and Manchester have sizeable community heating infrastructure.
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Mis-informed
views
"There is uncertainty
about the long term existence and viability of Veolia
Environmental Services and as a consequence it is
essential to install a back up system that will
function off normal mechanical and electrical supplies.
This would require an additional plant room and
equipment at extra cost as well as the potential
reduction in net lettable area, which impacts on
the buildings value."
The District Energy business is now embedded in
the largest waste management company in the UK and
is seen by Veolia as an essential and integrated
part of the Sheffield business. As Veolia have been
in existence for over 150 years and are the second
largest waste management company in the world its
long term viability is secure.
The District Energy Network has made the Sheffield
ERF the showcase plant of the UK. There is another
30 years to run on the waste management contract
under which we are obligated to maintain and develop
the District Energy Network. We have customers with
long term contracts of up to 25 years and we have
a portfolio of satisfied customers, some who have
been enjoying District Energy for over 15 years.
We are here for the long term.
There is no need for a building to have 100% back
up using conventional heating equipment as the District
Energy Network has multiple redundancies built in
already. Very few buildings connected to the District
Energy Network have such back up and those that
do usually already had the equipment installed before
connecting to us. One of our selling points is space
saving due to the fact that a heat exchanger requires
less space than a boiler, thus releasing more lettable
space.
"The response of the ‘Investment Market’
to connecting an office block to District Energy
is at best the office would have a much lower value
if it relies solely on District Energy. At worst
it would be very difficult to find a suitable investor
to acquire the asset."
The issue of whether or not the 'Investment Market'
wants to invest in buildings with a District Energy
connection is an issue that has been around for
some time. It has not been a problem with the Mars
Pension Fund who own Fountain Precinct and it appears
not to be a problem with No2 St Paul's and other
offices already connected to the District Energy
Network. If all the information is presented then
it becomes evident that this is not a problem.
This has been our experience with Institutional
Developers and Investors and many are now more aware
of sustainability issues and the Directives coming
out of Europe; which make District Energy more attractive.
Investors are conscious of the need to take on board
sustainability issues and are looking to secure
property that addresses the challenges; using District
Energy helps meet these aims and can enhance the
value of the property.
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