Rising gas prices are setting the stage for sustainable district heating in Skive

Skive fjernvarme
Skive Fjernvarme is building a new wood chip-fired district heating station that will form a green gateway into Skive. Focus is on security of supply, and in developing the solutions that will support Skive Municipality’s supply of heating for many years into the future, allowance has been made for both local and sustainability considerations.
Skive Fjernvarme currently supplies heating to about 50 pct. of Skive’s homes, but rising oil and gas prices have fuelled demand for district heating. Against this backdrop, Skive Fjernvarme is in the process of building a new wood chip-fired district heating station that – in combination with an expansion of the supply area to cover an additional 2,000 homes – is intended to future-proof heating supplies.


Skive Fjernvarme previously used wood pellets, the greater part of which was shipped from abroad. Going forward, the new district heating station, consisting of a 10 MW hot-water boiler, will use wood chips produced locally within a radius of 50 km from Skive. By using wood chips, a residual product from forestry operations, Skive Fjernvarme will be able to enhance its security of supply and make it more sustainable. The station will also be able to use locally collected garden/park waste and geothermal heat.


Using the most sustainable solutions that will support Skive Municipality’s goal of being carbon neutral by 2029, Skive Fjernvarme is thus thinking ahead. Calculations show that the new district heating station and the expansion of the supply area will reduce carbon emissions from 8,500 tonnes to 1,500 tonnes per year.


“Providing sustainable district heating that will help ensure high security of supply for our customers – also in the future – is one of our main priorities.”

Tage Meltofte

CEO, Skive Fjernvarme

Borrower: Skive Fjernvarme


Loan purpose: Establishing a new wood chip centre and expanding supply area


Loan amount: DKK 259 million (construction credit)


Project period: 2022-2026