Invitation DISTRICT HEATING SECTOR ROAD SHOW VISIT

KIEV, , OLEKSANDRIA - 9TH TO 13TH OCTOBER

The Danish Embassy of Ukraine and DBDH have the pleasure to invite you to join a DH Sector Visit (road show) to Ukraine this autumn. The visit will take place in the period 9th to 13th October and will focus on the cities Kryvyi Rih and Oleksandria. Kiev, as the city of arrival and departure, will be included as well with a program on the financing opportunities of Danida Business Finance.

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk DH SECTOR ROAD SHOW UKRAINE

The Danish business delegations in the district heating sector have managed to create a high level of branding for Danish consultancy and technologies during the past two years - through focused seminars and sector visits in various cities of Ukraine. We wish to continue this focus - this time the road show will kick-off in Kiev and then continue in the cities of Kryvyi Rih and Oleksandria. These cities are participants of the program Modernization of Municipal Infrastructure financed by EIB with the focus on modernization projects in district- heating and energy-efficiency. Other IFIs like EBRD, E5P as well as NEFCO are working with these cities on other projects of which energy-efficiency in buildings is the most important part of it. Denmark is investing here through E5P, NEFCO and IFU.

BACKGROUND

The perspective potential for refurbishment of DH in Ukraine is today far from being implemented, especially Ukraine has a significant renewable energy potential that can be deployed to realise Ukraine’s strategic energy goals. The Ukrainian Government has adopted the National Renewable Energy Action Plan, which stipulates 11% RES by 2020. The use of biomass for heat production will play an important role for achieving the goal, due to the new Law which will stimulate heat production from biomass.

Ukrainian Parliament also developed a draft law on commercial metering and billing of utility services, which will require all new construction to be equipped with meters. Meters will also be required in existing buildings within 2018.

The Danish Energy Agency is active in Ukraine at the Ukraine-Denmark Energy Center, and will support the event with participation and presentation of the general overview of Danish district heating – perspectives and trends.

Recently, Danida Business Finance has included Ukraine on its list of countries. This will mean new opportunies for financing of non-commercial projects in the district heating, water and energy efficiency sectors, as Ukrainian project holders will have the possibility for requesting financing by Danida for relevant projects in these sectors.

THE PROJECT

The road show will bring a Danish business delegation to Ukraine for a 3-day event of visits to district heating companies and their project teams, to get the first hand insight in the challenges and need of potential customers in Ukraine. Meetings with the City Administrations as well as relevant contractors will be included. Through seminars, meetings and networking activities, Danish participating companies will have the possibility to meet the parties, discuss and present their solutions.

The major expected outcome of the DH Sector Visit will be the district heating knowledge and technology transfer from Denmark to Ukraine, contributing to the Danish export increase in the district heating market and at the same time developing the Ukrainian market for district heating into a more innovative and energy efficient one.

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk DH SECTOR ROAD SHOW UKRAINE

THE SELECTED CITIES:

KIEV In Kiev, the focus will be presentation of financial opportunities by Danida Business Finance to the sector during a common working seminar with invited relevant stakeholders in the sector. Focus will be on Association of Ukrteplokomunenergo, Ministry of Housing, State Agency for Energy Efficiency, Kievteploenergo, Kievenergo, City Administration, Kievvodokanal. The seminar will be a unique opportunity to gather information and discuss the possibilities for project financing of DH projects in Ukraine. A networking lunch will conclude the seminar.

KRIVYI RIH Krivyi Rih is a city in the Dnipropetrovsk region in central Ukraine and is the administrative centre of the district. The population of the city is approx. 700,000 people. Kryvyi Rih is the main steel industry centre of Eastern Europe, being a large globally important metallurgical centre in the iron mining region, having such metallurgical and mining giants as Mittal Kryvyi Rih, , Evraz and cement refinery HeidelbergCement.

Krivyi Rih is one of the three cities of the EIB project “Support to the Rehabilitation of DH Systems in 3 cities”, which is ongoing. Danish consultants are working on this project, which will likely result in procurement of international DH equipment, where Danish DH equipment suppliers will have a strong position.

The DH system of Kryvyi Rih consists of 7 districts, and is served by two municipal companies: Kryvorizhteplomerezha and Kryvorizka Teplozentral. The DH system has a total installed capacity of 4,340 MW and a heat load of 2,345 MW, which corresponds to 98% of the city’s total heat load: 52% is covered by Kryvorizhteplomerezha and 46% by Kryvorizka Teplozentral. The DH system includes 81 boiler plants, 314 boilers, 792 km long distribution network and 125 sub-stations. It serves some 7,832 customers with a total heated floor area of 11.2 million m2 and supplies domestic hot water to 384,000 people.

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Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk DH SECTOR ROAD SHOW UKRAINE

THE SELECTED CITIES (CONTINUED):

The project proposal for modernisations of the DH system covers the DH utility Kryvorizhteplomerezha. The proposal includes a moderate decentralisation of the existing centralized DH system. It includes reconstruction and new construction of boiler houses and improvement of the remaining DH network. Further the modernising of the DH system includes:

• Installation of 428 modern heat substations at the building level; • Reduction of thermal heat losses by decommissioning of large main pipelines; • Construction/reconstruction of electrical, water and sewer systems to BHs; • Automation, monitoring, control and optimisation devices (SCADA system).

The Investment in modernisations of the DH system comprises approx. 36 mln EUR.

Further perspective is the supply of waste heat from ArcelorMittal Kryvyi Rih to 3 boiler houses or to install CHP in the biggest boiler house. ArcelorMittal Kryvyi Rih is the largest full-cycle metallurgical company in Ukraine. Its production plants include a coke and by-product plant, a mining and beneficiation complex, iron- ore deep mining, and a metallurgical complex consisting of a sinter and blast furnace, steelmaking and rolling process departments.

OLEKSANDRIA Oleksandria is a city located in central part of Ukraine in Kirovogradka Oblast with the population of approx. 100 000 people. Oleksandria is our second focus, as it is also one of the three cities of the abovementioned EIB project “Support to the Rehabilitation of DH Systems in 3 cities”, which is ongoing. The total costs of the project in Oleksandria is around 17 mio. Euro including EIB loan and E5P Grant.

The DH system of Oleksandriya consists of 2 districts: Northern and Southern and is operated by a municipal company Communal Enterprise Teplokomunenergo. The length of the DH network is 74 km. The total installed capacity is 157 MW and the heat load 107 MW. The annual heat production is approx. 300 GWh. It serves customers with a total heated floor area of 1.2 million m2.

The project is to change 40 km of pipe networks and installation of new 134 meters connection pipe to connect two central heating stations with a new boiler house. Construction of a new boiler house in the central heating station and modernization of three boiler houses.

Further the modernising of the DH system includes:

• Renovation of the remaining DH network; • Installation of 153 individual heating units with metering at building level • Construction/reconstruction of electrical, water and sewer systems to boiler houses • Automation, monitoring, control and optimisation devices (SCADA system)

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk DH SECTOR ROAD SHOW UKRAINE

PRELIMINARY PROGRAM

October 9 • Arrival to Kiev • Briefing meeting at the Danish Embassy

October 10 KIEV • Seminar in to present financial opportunities of Danida Business Finance • Lunch reception for all participants • Bus transfer to Oleksandria

October 11 OLEKSANDRIA • Meetings with Municipality and district heating companies of Oleksandria • Presentations Ukrainian side • Presentation by Danish Energy Agency • Presentations by Danish companies • Networking Lunch • Bus transfer to Kryviy Rih and check-in at hotel

October 12 KRYVYI RIH • Meetings with Municipality and district heating companies of Kryvyi Rih • Presentations Ukrainian side • Presentation by Danish Energy Agency • Presentations by Danish companies • Networking Lunch • Bus transfer to Kyiv and check-in at hotel in Kyiv

October 13

Departure to Denmark from Kyiv

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk DH SECTOR ROAD SHOW UKRAINE

TRAVEL ARRANGEMENT

October 9 Billund-Amsterdam 10.05-11.15 by KLM or Copenhagen-Amsterdam 09.35-10.55 by KLM Amsterdam-Kiev 13.15-17.05 by KLM

October 13 Kiev-Amsterdam 09.50-11.55 Amsterdam-Billund 12.55-14.00 by KLM or Amsterdam-Copenhagen 14.20-15.40 by KLM

Price will depend on time of booking, but is approx. DKK 3,000 incl. taxes. Contact Susanna Vazquez, BCD Travel, at tel. 3915 4588 for booking.

Alternative is the direct flight Copenhagen-Kiev by Wizzair, the price check on the website indicates a price level of DKK 2,000. October 9, Copenhagen-Kiev, 19.40-22.55 October 13, Kiev-Copenhagen, 17.50-19.10

Hotels in the cities will be arranged by the Danish Embassy. The price level is approx. EUR 100/night

PRICES

Based on the participation of 8 Danish companies, the price will be DKK 12,900 per company including one representative. You can participate with up to three participants for an additional cost of DKK 2,000. The price includes all shared costs of the project including the lunch arrangements in the program. Only individual costs like travel, own meals and accommodation will be paid individually.

DO YOU WANT TO JOIN?

Please register by confirming by mail to Pia Zimmermann at [email protected] before September 6, 2017.

If you need further information please do not hesitate to contact us.

Tetyana Kobchenko, Danish Embassy Ukraine Pia Zimmermann, DBDH Commercial Advisor Export Manager

[email protected] [email protected] Direct: +38044 2001268 Mob.: +380674415717 Mob.: +45 2926 0380

Stæhr Johansens Vej 38 · 2000 Frederiksberg · Tlf.: 8893 9150 · www.dbdh.dk