Companies who carry through a transition to renewable energy have subsidies in store. We helped Skjern Paper Mill assess whether it would be cost-effective to substitute wood chips for natural gas as heat source. Our analyses helped pave the way for Skjern Paper Mill’s energy transition project.

Client: Skjern Paper Mill

The task
Skjern Paper Mill asked us to assess whether there would be an economic gain in using biomass as heating source. They wished to make use of our knowledge of the subsidy scheme for companies who transition to renewable energy in their production. In addition, they asked us to incorporate their new heating pump facility with their current use of surplus energy for district heating.

How we solved the task
We carried out the task by:

  • Analysing the company’s consumption pattern
  • Examining options that use biomass as heating source
  • Optimising the chosen option for district heating production and linking it to their heating pump facility
  • Making an investment budget
  • Carrying out an economic analysis which focused on payback period and rate of return
  • Drawing up a report that provides a basis for decision at the end of the project
  • Assisting the company in applying for subsidies

And the result was
At the end of the project we gave Skjern Paper Mill a report that makes up the basis for the decision whether they ought to use biomass as heating source in their production. We concluded that there would be an economic gain in carrying through a transition to biomass. Furthermore we concluded that the payback period would be reasonable. For that reason the company has chosen to continue the project.

Learn more
Peter Kristensen, or +45 31 75 17 23