WEBVTT

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This is the Decarbonisation Dialogue, a podcast

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from Salix. Welcome to Delivering on Climate

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Change, our collective challenge. Welcome to

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the Decarbonisation Dialogue. I am Hannah Walker

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and I believe that the best way to communicate

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a message is by being passionate about what you

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are talking about. Through that passion, I believe

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you take people with you and create action using

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your influence to make change and make a difference.

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Our task today is to get all of us to net zero.

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My guest today is Morten Djoerdal who is a recognised

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expert on heat networks. He knows everything

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there is to know about the development and implementation

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of district heating in Denmark. He spends much

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of his time working in the UK explaining the

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value of heat networks and providing insight

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into their operations. He will talk to us today

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about the part heat networks have to play in

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our society, our cities and our communities.

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Morton works for DBDH, which is a Danish member

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organisation with members from the entire Danish

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district heating sector. Its vision is to create

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a better world that benefits from sustainable

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district energy. Morton has also served as head

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of secretariat at District Energy Partnership,

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a Danish district energy lobby organization.

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District Energy Partnership works to improve

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framework conditions for district heating, thereby

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enhancing Europe's rollout. His career began

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in the district heating industry in Eastern Europe

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and Russia more than 20 years ago. And since

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then, he has worked as a business development

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director in a large organizations. So welcome.

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To Morten, good to see you. Thank you, Hannah,

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and thank you for inviting me. That was some

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nice words. Thank you. Okay, let's get started.

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I'd like to start by talking a little bit about

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your career and your education and how you started

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this journey and what your background is. Obviously,

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to most people in this industry, I'm not an engineer.

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I'm actually from the, I'm educated at the business

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school, so I'm kind of an MBA. a Danish version

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of the MBA and my very first job was in district

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heating where I did training courses. My very

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first real job was in district heating. We did

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training courses for Russian and Eastern European

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district heating experts because they have and

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especially had a very different approach to this.

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But in reality, my very first job in district

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heating was when I was around 15 years old because

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my father asked me to dig the trench from the

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street so they could lay pipe into our house.

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I made a fortune, I thought. Well, I felt like

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I made a fortune. So that's your background.

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So it's business, but obviously there's a little

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bit of digging work going on. But you are now

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working heavily in district because district

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heating is... I'd like to know exactly what it

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is because it isn't new, is it? Here over in

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the UK, the Sheffield District Heating Supply

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Company established a heat network back in the

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1870s. Pimlico District Heating undertaking opened

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in the 1950s. So it's not new. Can you explain

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exactly what they are and how they work? In a

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way, it started out being just a very large boiler

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system. Everybody in the UK have a gas boiler

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or nearly everybody anyway. and then they have

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a boiler and then they pump heat around to the

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radiators. Now imagine you enlarge that system

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tremendously and you put very large boilers or

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waste incineration plants or other really huge

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heat sources out in the city or outside the city

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and then you just pump hot water in highly isolated

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pipes that is in the street to each and everybody's

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building and home. and then we use that hot water

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to heat. So the interior in your home is exactly

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the same. The heat just comes from somewhere

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else through big pipes and these systems can

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be really, really big. In Copenhagen from north

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to south we have like 70 kilometers now in a

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connected system and east west it's around 50

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kilometers and in Copenhagen they provide heat

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to more than a million people. far more than

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a million actually when I think about it. So

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it's a centralized system. Okay, so I want to

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go back to Copenhagen and I want to talk also

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about our awareness of heat networks. But at

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Salix, we work very much with energy efficiency

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measures and we're looking all the time at decarbonization

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and getting rid of those old fossil fuels. So

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on the heat networks front, are you saying these

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are good for the planet? In my opinion, yes,

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they're really good for the planet. That's the

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shortest possible answer. The difference between

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you probably have a gas boiler where you live.

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The difference is if you want to change the heat

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source in a district heating system from gas

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or oil or coal in good old days to something

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that is really renewable, then you only have

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to do it one place. Instead of going out to millions

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and millions of homes and changing their boiler

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or their heat source there, we can change centralized

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and we can change in a way where we make it cheap

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for everybody. So the question was is it climate

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friendly? Yes it is. In Denmark we are around

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75 % carbon neutral in our district heating and

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that number is growing every day because we are

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pushing out all the fossil sources more and more

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and introducing new renewable sources. Electric

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boilers running on solar power and wind power,

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heat pumps, biomass, surplus heat. There are

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so many heat sources that are otherwise wasted

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or that are really renewable that we can now

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put into our systems. We think we will reach

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close to 100 % in 5 -10 years, 100 % renewable

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heat. That is... Good for the climate. That's

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good for the world. And that is that is certainly

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good for our planet. Exactly You mentioned the

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word cheap because we've all got our eye haven't

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we on the budgets and the heat networks are not

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cheap Are they they're not initially cheap? No,

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but they're affordable. Yes, they are the cheapest

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solution we have in the in the towns and cities

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Not in the urban areas, not in the rural areas.

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There we should do definitely individual heat

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pumps. That's the absolute best solution out

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there. But in urban areas, and that's from small

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villages of maybe, I don't know, 500 buildings

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and up, maybe even smaller, there it is the cheapest

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alternative when you look at the overall total

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cost of ownership. The problem, and the reason

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why you say it's not cheap, is probably because

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you compare to natural gas. And that is a hard

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one to compete against because that is heavily

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subsidized over the years. We already have the

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gas network in place. But let's also be fair

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and say, I think it's 2045. In the UK, you have

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agreed that we should not have fossil heat in

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our heating systems. And that excludes natural

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gas. So you can't continue comparing to something

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you don't want to use in the future. You need

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to compare to real alternatives. And it may cost

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a tad more, but it's cheaper than the alternative.

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And cheaper than that alternative I call affordable.

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I will also say that in that calculation, we

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do not include future costs for the climate,

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for instance. That is not a part of it. We do

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not include political costs like local jobs or

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local supply chain or import independence, making

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us less dependent on resources from states we're

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maybe not too happy about. That's also a value.

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And that is not included in my Affordable. Exactly.

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So you're arguing that that is something we don't

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factor in, the result of climate crisis and the

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kinds of issues that we see on our news. Just

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come back to Copenhagen because you've talked

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about Denmark, you've talked about Copenhagen,

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and indeed Copenhagen is one of the world's most

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extensive district heating networks, and I think

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it supplies about 99 % of the city. Why in the

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UK, when you compare us to somewhere like Copenhagen,

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Why are we so behind, if you like? I think we

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have to go back a very long time. The reason

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why we have a lot of district heating, twofold.

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In the energy crisis in the 70s, at that time

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we already had some district heating and it was

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fairly successful and fairly okay. So we knew

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what it was. And when we had the energy crisis

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in the 70s, we did not have a lot of natural

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gas. we could use. It's my personal personal

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guess and opinion that if we have had all the

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gas you knew you had in the UK, we would probably

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have had the same amount of gas heating as you

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have today. So we were lucky. We felt unlucky

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at that time, but we were lucky. So from the

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70s onwards, especially after the first heat

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law in Denmark in 1709, we went down two routes.

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We made sure that our buildings were more and

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more and more energy efficient. We have some

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of the highest energy efficient standards for

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buildings in Denmark. And at the same time, we

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dedicated different areas either to have district

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heating or to use natural gas. So we never rolled

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out a double system. You didn't do that either

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in the UK. You just only rolled out natural gas

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networks. but we had that choice between the

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two different systems and when you do not have

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to invest in more than one as you did then it

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becomes fairly inexpensive and it's something

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we give to everybody so why are we ahead of you

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in the numbers is because we felt unlucky in

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the 70s what i see when i look at the uk today

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i see Enormous commitment from many local authorities,

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both in Scotland and in England, where I work

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a lot on this carbon agenda. They're really,

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really searching for ways to be able to deliver

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an affordable, fairly priced green heat solution

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to the citizens. And when you look at Scottish

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government and DESSNAS, the English Energy Agency,

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I think they do a lot of good things. I, of course,

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would love them to do much more and much faster,

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but that's my job also. Remember that. In terms

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of actually warming our homes and our buildings,

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public buildings, et cetera, which country do

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you think is best at it today? I'm paid to say

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Denmark. Yes. I think we do it quite well in

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Denmark. We have affordable prices in general

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in Denmark. The vast majority of buildings in

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Denmark are heated by district heating, two -thirds

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of them are. They are fairly renewable and we

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are moving fast forward on the renewable part

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of it. We will reach 100%. We also see that,

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if you look at it a bit broader perspective,

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the Danish district heating sector does a lot

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of good for the electricity grid. We have a lot

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of wind and solar in our electricity grid. Today,

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the sun is shining and it's fairly windy. I haven't

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checked electricity prices, but they are low

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today. I must assume they are low because we

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have a lot of renewable electricity. And here

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we have the district heating world that can take

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up all that inexpensive, nearly surplus electricity

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and use that. On the other hand, we can decide

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not to use electricity in the district heating

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world when the prices are high. So we can move

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away when there's a need for electricity in society

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and when there's too much we can step in because

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we can store heat a lot better. So we have managed

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to put together a system. I'm not in any way

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saying it's perfect, it's not, but it's rather

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good. we are looking into the overall cost of

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society every time we make decisions. So we're

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also fairly sure we do good for Denmark. So it

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is really that looking at all of those sources,

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because we do, through our work here at Salix,

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we do look at solar, and obviously all the time

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there's hydro in the background, geothermal,

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biomass, and of course ocean energy, all of that.

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So why are we so obsessed with Am I allowed to

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say this in this country with heat pumps? What's

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your view on heat pumps? My view on heat sources

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is the more you have the merrier. That's my first

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point of view because then sometimes electricity

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prices are low or biomass prices are high or

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something and then in a large system you can

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switch around. That is very important to keep

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prices down. You are very and what my view on

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heat pump is that they are They are very, very

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important for the future of district heating.

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We are seeing a lot of heat pumps being introduced

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on any source you can imagine. Not warm enough

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surplus heat from industry, from air, from sewage,

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from data centers, from all the sources you can

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manage. A heat pump is pretty neutral when it

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comes to the heat source that it uses. My view

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also is that no matter how much I like them,

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there are also other sources out there. Industrial

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surplus heat at the right temperature. Nobody

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in Denmark would invest in a heat pump if there

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was a lot of surplus heat to be gained from an

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industry or from any other source for that matter.

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Waste incineration. We don't like waste incineration

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in the future and we want to limit it, but as

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long as we have it. Why waste the heat? Hydrogen

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production? We don't even think about burning

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hydrogen for heating in Denmark. Nobody talks

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about that ever. But in hydrogen production,

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there is a byproduct. That's a lot of heat. Let's

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use that to heat our homes. So, yes, I like heat

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pumps very much. I'm just saying there's also

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other sources out there. You spent a lot of time

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in Copenhagen and Denmark overall, and you also

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spent a lot of time in the UK. Can we talk for

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a moment about skills? Because this is a big

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subject, because it's all connected, and our

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goal is to get to net zero. Do you think we have

00:15:52.240 --> 00:15:56.940
the skills here? All over Europe there is a tremendous

00:15:56.940 --> 00:16:00.960
skills issue because all over Europe and the

00:16:00.960 --> 00:16:04.519
UK we are looking into we need to make heat plants.

00:16:05.000 --> 00:16:07.960
We need welders. We need people who can operate

00:16:07.960 --> 00:16:11.419
a district heating system and we do not necessarily

00:16:11.419 --> 00:16:14.960
have them or clearly we do not have them. But

00:16:14.960 --> 00:16:19.440
it's not a situation where we come 100 % from

00:16:19.440 --> 00:16:23.360
nothing because people who are good at welding

00:16:23.759 --> 00:16:26.340
can be trained to weld district heating pipes.

00:16:27.059 --> 00:16:31.080
People who are good at city planning can be trained

00:16:31.080 --> 00:16:37.139
to do city heat planning. So it's not a completely

00:16:37.139 --> 00:16:41.000
new industry, but of course with the requirements

00:16:41.000 --> 00:16:44.259
or the expectations we have that district heating

00:16:44.259 --> 00:16:48.879
should grow so fast, we need a lot of commitment

00:16:48.879 --> 00:16:52.820
from educational institution at all levels and

00:16:52.820 --> 00:16:55.960
all trades more or less. We need a lot of dedication

00:16:55.960 --> 00:16:59.360
from national governments that they want this

00:16:59.360 --> 00:17:02.580
to happen. The national government says we need

00:17:02.580 --> 00:17:06.079
to do, and the numbers changes, but say 30 %

00:17:06.079 --> 00:17:08.980
district heating within a very short timeframe.

00:17:09.460 --> 00:17:12.420
That is a growth that you cannot, that's hard

00:17:12.420 --> 00:17:16.420
to imagine. And there they need to follow up

00:17:16.420 --> 00:17:20.049
with training, education, And then they need

00:17:20.049 --> 00:17:24.890
to be open to use foreign skills. We also need

00:17:24.890 --> 00:17:28.490
to tell all the manufacturers of pipes and pumps

00:17:28.490 --> 00:17:31.690
and what have you that we need new products that

00:17:31.690 --> 00:17:35.410
we can use for this fast, fast, fast change in

00:17:35.410 --> 00:17:37.990
the world. It should be easier to lay pipes.

00:17:38.849 --> 00:17:41.630
That is a fair requirement to the pipe manufacturers.

00:17:42.230 --> 00:17:46.170
It should be easier to, we should digitalize

00:17:46.170 --> 00:17:49.589
much more. our whole planning process. It still

00:17:49.589 --> 00:17:52.930
requires skilled planners. Yes, it does. But

00:17:52.930 --> 00:17:57.670
we have systems that can assist it. And there

00:17:57.670 --> 00:17:59.890
are countries in the world who has already come

00:17:59.890 --> 00:18:03.269
a long way on this. Denmark is one of them. That's

00:18:03.269 --> 00:18:04.970
a very interesting point, particularly about

00:18:04.970 --> 00:18:06.869
Weld, as I was on a project recently, and they

00:18:06.869 --> 00:18:08.970
were talking about the value of exactly that

00:18:08.970 --> 00:18:12.250
kind of skill. And also, it's establishing, as

00:18:12.250 --> 00:18:14.430
you say, that kind of joined -up approach between

00:18:14.430 --> 00:18:17.890
government, between business. between institutions,

00:18:18.309 --> 00:18:22.130
training institutions, etc. So you've answered

00:18:22.130 --> 00:18:24.730
my next question, Morten, which takes me on to

00:18:24.730 --> 00:18:28.289
your own lifestyle choices. We're talking a lot

00:18:28.289 --> 00:18:31.950
about saving the planet, creating a better future

00:18:31.950 --> 00:18:34.970
for generations to come, a cleaner planet, more

00:18:34.970 --> 00:18:37.410
sustainable energy. How does that all factor

00:18:37.410 --> 00:18:41.589
out in your own lifestyle? I'll first say, from

00:18:41.589 --> 00:18:44.460
a district heating perspective, It doesn't do

00:18:44.460 --> 00:18:46.799
a thing because I have lived in a home with district

00:18:46.799 --> 00:18:52.619
heating since the 70s more or less. I've been

00:18:52.619 --> 00:18:55.119
abroad living a short period of time, but in

00:18:55.119 --> 00:18:58.180
Denmark I think I've only been in homes with

00:18:58.180 --> 00:19:00.940
district heating. And in Denmark it's such a

00:19:00.940 --> 00:19:02.839
natural thing, you don't even think about it.

00:19:03.119 --> 00:19:06.440
Working in this business and having children

00:19:06.440 --> 00:19:11.099
inspires me a lot for my lifestyle. I'm cautious

00:19:11.099 --> 00:19:14.170
about how much I fly. Even though that my job

00:19:14.170 --> 00:19:17.329
is traveling out from Copenhagen and tell everybody

00:19:17.329 --> 00:19:19.730
at district heating, I fly more than most people,

00:19:20.049 --> 00:19:25.470
but I'm careful how much I fly. I'm careful how

00:19:25.470 --> 00:19:30.369
much I drive. I even acquired a electric car

00:19:30.369 --> 00:19:33.049
recently. So there's a lot of small things I

00:19:33.049 --> 00:19:37.029
do. My hope is that sitting here, talking with

00:19:37.029 --> 00:19:40.509
you, being in Germany yesterday, working with

00:19:40.509 --> 00:19:44.359
some specific projects, is my contribution to

00:19:44.359 --> 00:19:47.140
a better world and a better planet. Thank you.

00:19:47.660 --> 00:19:50.319
That's certainly inspirational. Thank you very

00:19:50.319 --> 00:19:53.119
much. And there's a lot of lessons to be learned

00:19:53.119 --> 00:19:56.099
there. Thank you very much to Morton today for

00:19:56.099 --> 00:19:59.440
providing such valuable insight to us. There

00:19:59.440 --> 00:20:01.839
can be no doubt that climate change is the biggest

00:20:01.839 --> 00:20:04.849
challenge of our time. Today we must reduce greenhouse

00:20:04.849 --> 00:20:07.769
gas emissions to slow global warming. Today we

00:20:07.769 --> 00:20:10.430
must act for tomorrow, adjusting our lifestyles

00:20:10.430 --> 00:20:13.029
to current and future impacts of climate change.

00:20:13.470 --> 00:20:16.309
Today we must use our collective wisdom to deliver

00:20:16.309 --> 00:20:19.250
on our climate commitments. Today we work for

00:20:19.250 --> 00:20:22.569
tomorrow's world. Thank you once again to Morton

00:20:22.569 --> 00:20:25.230
for spending such incredible time today to talk

00:20:25.230 --> 00:20:28.150
to us. about your work and the district heat

00:20:28.150 --> 00:20:31.509
network systems. Don't forget please do subscribe

00:20:31.509 --> 00:20:33.970
to our podcast channels and you can always email

00:20:33.970 --> 00:20:37.390
with ideas please at podcast at salixfinance

00:20:37.390 --> 00:20:41.289
.co .uk. We'd love to hear what you think about

00:20:41.289 --> 00:20:44.069
today's podcast and we'd also love to hear your

00:20:44.069 --> 00:20:47.589
suggestions for future podcasts. So thank you

00:20:47.589 --> 00:20:49.690
very much to Morten, thank you for your time.

00:20:49.910 --> 00:20:52.849
Hannah, thank you for inviting me, it was a pleasure.

00:20:53.390 --> 00:20:56.069
You've been listening to the Decarbonisation

00:20:56.069 --> 00:21:00.410
Dialogue, a podcast from Salix. For more information

00:21:00.410 --> 00:21:03.750
about our work and to find more content, please

00:21:03.750 --> 00:21:08.349
visit salixfinance .co .uk forward slash podcasts.
