Improve energy efficiency, Reduce service life costs & Reduce CO2 emissions with LOGSTOR pre-insulated pipe system

1. Improve energy efficiency, Reduce service life costs & Reduce CO2 emissions with LOGSTOR pre-insulated pipe systems Jørgen Ægidius, VP Sales

2. Energy efficiency & Service Life costsContents • Energy efficiency in DH/DC • LOGSTOR, Facts & figures • Project optimization • Service life costs in DH/DC • An example of service life costs

3. The means to increase energy efficiency • Global focus on the energy sector and the environment • Rising energy prices demand better efficiencies • Global commitment to reduce CO2 emissions • LOGSTOR is an energy efficiency company in the energy business Half of the EU target of reducing CO2 emissions by 20% in 2020 can be achieved by a doubling of current district heating coverage from app. 10% to 20%

4. The means to increase energy efficiency • Electricity • District Heating • District Cooling 4

5. The LOGSTOR Company • The global leader and specialist in pre-insulated pipe systems, focus on: • Cost efficient system and technologies • Energy saving solutions • Providing pre-insulated products which ensures the efficiency of the energy distribution

6. Facts and figures- LOGSTOR business areas • District heating • District cooling • Oil & gas • Marine piping • Industrial piping • Pre-insulated pipe systems for temperatures ranging from –200 to +250°C • Dimensions from dn15/77 to dn1200/1400

7. Facts & figuresProduction and Sales Units • Headquarter in Løgstør, Denmark • 9 factories in Europe • 2 factories in Asia • 1 factory J/V in UAE • 1 production partner in Russia • 13 Sales Units • Distributors in 30 countries • 1.400 employees • Annual turnover of +300 MEUR

8. The challenge, and solution • Assuming that Turkey intends to improve energy efficiency, by; • Utilization of geothermal ressources • Exploitation of waste heat from Power Generation, • Exploitation of waste heat from Industrial Production • Into CHP, District Heating and District Cooling systems for residential buildnings and institutions

9. Service life costs in DH/DC systems Investment costs: Pipe material Civil works Pipe installation Inspection + Operating costs: Heat loss Pumping costs + Maintenance costs: Inspection / monitoring Service / repairs = Service life costs Normal Focus area Less attention !

10. LOGSTOR technical optimisation • Savings in investment costs • LOGSTOR products & design solutions • Installation costs • Civil & mechanical work • Savings in service life costs: • Heat loss savings • Maintenance & repairs • Examples, project optimisation

11. Selection of pipesystem • Heat loss constitutes the major part of the life cycle costs – approx. 40% • CP ageing < CO2 • Increase of insulation thickness pays off by reducing the heat loss • Twinpipes gives additional heat loss reduction • Diffusion barrier maintains the insulation properties throughout the lifetime • Spin off : Reduction of CO2-emission

12. Heat loss, PU-foam propertiesOperating costs • Factors that influence on PU-foam properties • Blowing agent – main component in the PU - cells • CP, slow diffusion and slow ageing • CO2, quick diffusion and quick ageing • Cell-gas composition • Cyclopentane (CP) : 0,012 W/mK • Carbondioxide (CO2) : 0,017 W/mK • Air : 0,027 W/mK • Diffusion barrier, maintains the -value througout the life time • HDPE casing wall thickness, • Resistance proportional to wall thickness • HDPE has 4 times higher resistance to diffusion than LDPE • HDPE Casings > ø315, marginal influence from diffusion barrier

13. Ageing of PU foam, Diffusion Without diffusion barrier With diffusion barrier

14. Ageing & deterioration of PU-foam

15. Operating costs development • Principle development of operating costs – pipes with and without diffusion barrier • Diffusion barrier has highest impact on flexibles, small and mid size dimensions

16. Long distance transmission of DHIt’s possible ! • Efficient transport of DH / geothermal energy from source to supply area and consumer • Maintains the quality (temperature level) of the energy source • Example: • 20 MW at 90/45 C transported, 2x10 km • Ø273/400 transmission line Low temperature drop High efficiency

17. Service life costs, an exampleDistribution system • The system supply 4 MW • The pipe system includes: • 2 x 1000 m DN 150 • 2 x 1000 m DN 100 • 2 x 2000 m DN 80 • 2 x 500 m DN 50 straight pipes (5 consumers each 250 kW) • 2 x 5000 m Ø 20 mm Flex pipe x (200 consumers each 12 kW) • Product investment costs approx.: 500.000,- EUR

18. OPERATIONAL COST: Pump energy 1% of heat supplies Energy price 0.05 EUR/kW Energy price rise 2% Price of electricity 0.10 EUR/kWh Energy type natural gas Inflation 2% Interest rate 6% Service life period 30 years INSTALLATION COST: Basis is series 1, Series 2 + 12% Twin Pipes + 25% X-linked shrink joints +5% Installation cost 50% of pipe value Inspection 0- 50 000 EUR Excavation cost = pipe value Series 2 + 15% Twin – 20% Asphalting cost 50% of pipes value – Twin: –30% An example, assumptions All life cycle costs calculated as net present value, i.e. The sum of money you should put in the bank today to be able to pay in the entire life of the system

19. LOGSTOR Technical optimisation, Service life costs • Use pipes with higher insulation series, or TwinPipe systems • Extra investment compensated by savings in heat loss and CO2-emissions • Approx. 50% savings from S1 to Twin S2 w. diff barrier Low quality pipe systems leads to increased heat loss & maintenance costs

20. Service life costs in DH systems Investment costs: Pipe material Civil works Pipe installation Inspection + Operating costs: Heat loss Pumping costs + Maintenance costs: Inspection / monitoring Service / repairs = Service life costs 30-35% 60-65% <5%

21. Conclusions • District Energy systems is a part of the solution towards Energy Efficiency and reduction of CO2-emissions • Proven technology and numerous reference projects in EU • Utilize surplus energy and renewable energy sources to CHP • Invest in high efficient infrastructure systems • Focus on operating costs rather than initial investments • It’s possible to transport energy over long distances with a minimum of energy loss and maintain the quality of the energy source

22. distributing energy efficiency Thank you for your attention !