The feasibility study in Mariupol has been completed
2021-04-28
We are pleased to announce that as a result of diligent cooperation between the SUDH team and the city, the feasibility study for the SUDH project in Mariupol has been finalised to the satisfaction of the city, the district heating company and Nefco.
“The city gets the financial opportunity to develop a project. The key issue is to allow the transformation of secondary heat into a heat supply for residential buildings. As a result, Mariupol families will receive a higher quality of district heating and the city will reduce its gas consumption,” explained Mayor Vadym Boichenko.
The SUDH team has been working on the development of the investment project since spring 2020. First, a pre-study was developed. The pre-study evaluated a few investment ideas and determined the optimal project idea for Mariupol. During the feasibility study, the team analysed the chosen investment idea further to develop a bankable investment project.
The proposed investment project for Mariupol has five components:
- Use of waste heat from the Azovstal plant for generating district heat and domestic hot water (DHW).
- The interconnection of three district heating networks east of the Azovstal plant.
- The installation of a flue gas condenser at a boiler house.
- The installation of a SCADA system; upgrade of automation systems and pumps.
- The installation of an Individual Heating Substation (IHS).
Using industrial waste heat to generate district heating is a unique solution for Ukraine. This approach will generate useful heating from a resource that would otherwise be wasted. No fuel will be added to the system to generate the useful heat. This has a positive impact on the environment as well as economic benefits for the industry, the district heating company and its customers. Such solutions are widely used in Sweden; read more here.
“The implementation of this initiative would be impossible without the support of Azovstal Iron. It is important that it agreed to support the project and become an active participant. It is this kind of cooperation between the municipality, the utility company and the private business that made it possible to attract investment funds,” commented Deputy Mayor Sergiy Orlov.
The interconnection between networks is an important step towards further optimisation of DH in Mariupol. The interconnected networks will allow for increased utilisation of waste heat in the future. The waste heat resource utilisation may be increased by supplying such resources from other shops in Azovstal. The interconnection will also allow the phasing out of old inefficient boiler houses and restoration of the DHW supply for all the months of the year.
The IHS installation will enable a demand-driven system and increase comfort and the service level for customers. When a fully demand-driven system is established, the concept of the heating season should be phased out and heating made available all the year round.
The proposed investment project contributes to the improvement of Mariupol’s environmental situation, the quality and reliability of district heating and the DHW services provided to the population, and it brings benefits to about 30% of the 250,000 district heating customers in Mariupol.
To implement the SUDH project in Mariupol, the DH Company intends to attract a EUR 5 million loan from Nefco, a EUR 1.5 million grant from Sweden and EUR 650,000 in local co-financing.
On 31 March 2021, Mariupol city council approved the request for financing by the DH Company as well as the provision of a municipal guarantee for the SUDH investment project in Mariupol.
For more details about the investment project in Mariupol, please, click here.