Assessing the viability and required steps to realise a new district heating network in Arnhem

The City of Arnhem was investigating the possibility of a major new heat pipeline (backbone infrastructure project) to bring heat to new parts of the city. Alliander and Nuon were the commercial partners, but they asked us in the first instance to anlayse the business case. When this proved successful we have – together with the Province of Gelderland, analysed further options for public financial support for this heat pipeline. Finally we have done a full due diligence for PPMO when they wanted to co-invest in this pipeline.

Key findings of the research can be summarised as follows:

  • The economic success of the project was strongly depending on uptake of heat by potential customers as well as the support from the (local) government for further stimulating a switch away from gas to centrally supplied heat
  • The financial structure chosen gave enough support as well as securities to support the project with public money