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Posts from the ‘Denmark’ Category

The green transformation of DONG Energy

Danish energy firm DONG Energy is in the process of selling all its oil and gas business. This is part of a major strategy where DONG is to lead the way in the transformation to a sustainable energy system and to create a leading green energy company.

Away from oil and gas

DONG’s oil and gas business on the continental shelf of Denmark, Norway and the United Kingdom has for decades been a core part of the company. According to Henrik Poulsen, CEO of DONG, the company now aims at selling all its oil and gas fields as one package, already this year (2017).

It has not been revealed who the potential buyer is. According to Danish media the most likely candidates are Maersk Oil and the US private equity fund EIG Global Energy Partners. EIG is the investor behind the company Chrysaor, which few days ago bought a variety of oil and gas fields in the North Sea from Shell.

Focusing on renewable power generation

dong-energy-green-transformation_2016DONG is also transforming its power production, by out-phasing coal. Not long ago coal used to be the overwhelming source for DONG’s (and Denmark’s) electricity- and heat generation. During the last ten years, DONG has reduced its coal consumption by 73% and is now aiming at phasing out coal completely from its power and heat generation by 2023. This will happen by replacing coal with sustainable biomass, at the same time as DONG will increase wind power generation.

dong-energy-mix_2006-2016-1This means that in just one decade, DONG Energy will have gone from being one of the most coal-intensive utilities in Europe to being among the greenest energy companies on the continent, being able to compare it self with Norwegian Statkraft and Icelandic Landsvirkjun.

Thus it may be no surprise that DONG now has launched a competition where Danes can try out their knowledge on green energy – and the winner will be awarded a week travel trip to Iceland. Iceland is of course the only European country fulfilling all its electricity consumption with renewable power generation. In addition, most of Iceland’s heating is supplied by utilisation geothermal sources, making Iceland the greenest energy country in Europe.

dong-energy-award-iceland-trip_2017

Does Facebook not want truly GREEN data centers?

facebook-zuckerberg-datacentre_screen-shot-2017-01-22-at-18-14-02Two years ago, we where wondering if Apple does not want truly green data centers. Now we might ask if this also applies to Facebook. Because it seems that Facebook is in fact not to keen on truly green data centers.

According to an announcement published in last January (2017), Facebook is going to build a new data centre in the Danish city of Odense, on the island of Funen (Fyn) west of Copenhagen. At a press conference with local authorities, the California-based tech company said this data centre to be the companies third such facility outside of USA.

And Facebook’s director of data center operations, Niall McEntegart, was quoted saying that “the Odense data centre will be one of the most advanced, energy-efficient data centers in the world”. It was also stated by Facebook management that the Odense data centre will be powered exclusively by renewable energy.

This is going to be an investment of more than USD 100 millions, and will provide 150 jobs when operational (in 2020). But in fact this new data centre will hardly be powered by 100% renewable energy.

denmark-gross-electricity-consumption_1990-2015-with-forecast-to-2025_table-from-energinet-denmark_sept-2016Surely Denmark generates substantial amount of its electricity by utilising renewable sources (mostly wind). Also, Denmark has interconnectors with major hydro power countries, like Sweden and Norway. However, the fact is that very large share of the electricity people and businesses in Denmark consume, is generated by burning fossil fuels (mostly coal).

According to the most recent information from the European Union, (see table here), the renewable’s share of Denmark’s gross electricity consumption in 2014 was close to 45 percent. More recent information from the Danish transmission system operator (TSO), Energinet, tells us that the share of renewable energy in net generation of 2015 was close to 67%. And according to Energinet, even in 2025 fossil fuels will be an important part of Denmark’s power mix (as explained on the graph at left).

facebook-data-centre_odense-denmark-electricity-supply-mapHaving regard to the facts, it is hardly correct to say that a data centre located in Denmark, connected to the grid.  will be run entirely on renewable energy sources only. Obviously Facebook intends to buy so-called Green Certificates, which are a tradable commodity proving that certain amount of electricity is generated using renewable energy sources only. However, this does not mean that the electricity being consumed by the buyer of the certificate is from renewable sources – it might as well be from a coal power station in Denmark or from a nuclear plant in Sweden.

The result is that every data centre in Denmark, connected to the grid, will in fact be using electricity from all kinds of power plants, including for example coal power stations. If Facebook truly wants to run its data centre on 100% renewable energy, the company should connect the data centre to a grid that only delivers electricity from renewable sources. In Europe probably no grid comes as close to this as in Iceland.

Iceland produces close to 99.9 percent of its electricity by utilising hydro- and geothermal power (and some wind power). So instead of claiming its data centre in Denmark being powered by 100% renewable energy, Facebook should consider Iceland as the location for its next data centre in Europe.

Viking Link ready in 2022?

We already have subsea HVDC power cables being constructed between Norway and the United Kingdom (UK) and between Norway and Germany. These cables will be 700 km and 570 km, respectively. And now one more major connector if this kind is planned in the area, between UK and Denmark. That cable is referred to as Viking Link, will be 650 km long.

HVDC-Viking-Link-Uk-Denmark-MapViking Link is expected to have a capacity of up to 1,400 MW. Recently, the Danish Transmission System Operator Energinet and the UK National Grid decided to launch a tendering process for the examination of the seabed between the two countries. Both companies have expressed their strong believe in the positive effects of such a power connection, which will open up possibilities to harness more wind energy at competitive prices. The successful tenderer will carry out geophysical surveys and sampling to pinpoint areas of environmental and archaeological interest and help identify the best route for the marine cables and suitable landing locations.

For the UK, the main advantage of Viking Link would be in the access to more power, at the same time as that power will mostly be generated by harnessing renewable sources. For Denmark, the cable will open access to much larger market for Danish wind power. The plan is to take the final investment decision no later than in 2018. The cable could then become operational about four years later or 2022.