PRESS RELEASE

2 December 2024

COGEN Europe (the European Association for the Promotion of Cogeneration) looks forward to engaging with the new European Commission, which officially starts work today (2 December 2024), following positive votes in the European Parliament and European Council last week.

Commenting on the first working day of the new European Commission, COGEN Europe’s Managing Director, Hans Korteweg, made the following remarks:

“COGEN Europe, as the voice of Europe’s cogeneration sector, is ready to engage with the incoming European Commission and provide constructive input to important discussions, including those on the Clean Industrial Deal and on how to decarbonise Europe’s energy sector in the context of the EU’s climate and energy targets for 2030 and 2040.”

“We are asking the new Commission to support the ambitious implementation of existing energy and climate policies and accelerate the uptake of clean energy solutions. Putting energy efficiency first will reduce Europe’s energy costs and our CO2 emissions. It therefore represents a win-win for the climate and competitiveness.”

“The EU must recognise that cogeneration is the most efficient way to deliver reliable and affordable energy across district heating networks, industry and buildings. With cogeneration, consumers can benefit from reliable supplies of heat and electricity as part of increasingly integrated energy systems that make the best use of clean and renewable sources of energy. It therefore has a central role to play in the framework of a more decentralised and decarbonised energy system, as Europe advances towards the goal of net zero greenhouse gas emissions.”

COGEN Europe looks forward to engaging in constructive dialogue with the new European Commission, notably with a view to contributing to the ‘Clean Industrial Deal’ initiative. In the coming weeks, the association will ask for meetings with key members and officials of the Commission, in order to present COGEN Europe’s Policy Priorities for the 2024-2029 period, as set out in in the document: The Role of Cogeneration in Europe’s Energy Transition – Enabling an Efficient Pathway to Net Zero.

20 November 2024

COGEN Europe (the European Association for the Promotion of Cogeneration) held its Annual Conference in Brussels on 14 November 2024. The Conference was closed by Stefan Liesner (Head of Marketing and Public Affairs, 2G Energy AG), who was speaking in his capacity as a member of COGEN Europe’s Executive Committee. Below we provide an edited transcript of Mr Liesner’s remarks.

Many thanks to COGEN Europe for inviting me to present the conclusions of this year’s Annual Conference. It was great seeing so many of you in person and to engage in lively debate around the panel discussions and during the networking sessions.

First of all, let me start with some personal impressions. From a German perspective the recent week was quite intensive. We were following the US elections, of course, and on the same day Germany’s coalition government collapsed. Moreover, we saw the images of the flooding in Spain and the huge tragedy for the people in the affected areas. I herewith express my deepest personal condolences to all colleagues from Spain who are here today. However, I think all these events are certainly linked to one another:
• People are aware of climate change
• People want to fight against climate change
• But, people are also scared for Europe’s economic future in the context of increasing competition from other parts of the world.

Earlier this week (11-12 November) the annual congress of the German Cogeneration Association B.KWK took place in Berlin. And for the first time in a few years we had the feeling that cogeneration is ‘back on track’ in the political landscape and is again seen as a future solution rather than an old-fashioned technology. Because cogeneration enables us to combine climate protection AND economic viability.

This was also my impression of today´s conference: the same seems to apply for the whole of Europe. We have heard from many high-level speakers: policymakers, senior executives, representatives of the paper, ceramics and sugar industries were with us today, sharing their cogeneration stories and future visions. The same goes for the district heating sector. We thank them for their valuable contributions and insights. We welcome the high-level support for the cogeneration sector at political level. This reflects the sector’s commitment to excellence, innovation and decarbonization, as well as to our customers.

We are pleased that representatives from the European Commission and the European Parliament joined us to kick start our conference with positive messages stressing:
• The good track record of cogeneration in terms of delivering energy efficiency and emission reductions;
• A commitment to more work in the field of cogeneration, notably in relation to the uptake of renewables, flexibility and further increases in efficiency;
• The willingness to combine competitiveness with the Clean Industrial Deal;
• Recognising the important role that cogeneration can play in contributing to Europe’s industrial competitiveness which is increasingly perceived as one of the top priorities of the European Union;
• ‘Going Local’ by mobilising local leaders and industries to drive ambitious action and investments;
• The upcoming debate on the 2040 emissions target and legislative framework;
• The need to ensure predictability for European industries and providers of clean energy solutions.

We have many reasons to be optimistic today. Cogeneration has been a key energy efficiency solution during the past decades. The role of cogeneration will change in the coming decades, but it will remain an important technology to enable an efficient pathway towards a net zero emissions energy system.

Industry executives speaking today have shown their commitment to providing cogeneration solutions that are future-proof.
• We have heard that cogeneration is key for energy systems’ resilience, affordability and competitiveness moving forward.
• There is substantial innovation in the cogeneration sector, focusing on digitalisation, renewable fuels, hydrogen, carbon capture and storage (CCS), flexibilization and optimisation with other decarbonisation technologies.
• Artificial intelligence (AI) solutions will play a crucial role in helping to integrate cogeneration technologies in the energy mix of the future.
• Moreover, cogeneration can help to foster the gradual transition of gas distribution grids towards climate neutrality. On a technological level, modern CHP plants are able to cope with all kinds of gases.
• On the consumption side, we see traditional applications continuing to rely on cogeneration as their technology mix diversifies. We also see new customer profiles emerging, such as data centres.
• There is no one solution that will help us get to net zero emissions, be it hydrogen or heat pumps, batteries or grids, solar or wind. Innovative energy solutions – whether in industry or at utilities – combine cogeneration with all of these technologies. In particular, the combination of CHP plus heat pump becomes increasingly important.
• There was consensus among our speakers today that we need technological openness and synergies that will allow industry to rapidly deploy and optimise all relevant solutions, in order to deliver emission reductions cost-effectively, whilst maintaining system reliability.

What about the users of cogeneration?
• Energy consumers are becoming increasingly aware of environmental objectives and even more aware of energy costs and their impact on competitiveness. Jointly addressing sustainability and competitiveness will be critical for the future of cogeneration.
• Energy costs and security of supply are still the main factors driving investment decisions.
• There is an overall willingness to electrify. However, this won´t happen overnight – due to grid capacity as well as financial viability.
• Previously, CHP applications in industry have mostly been operated according to on-site demand for heat and electricity. This will change as we move towards a deeper integration into the wider electricity market, but for this to happen also requires an adequate legislative and regulatory framework.
• The security of investments depends on having an ambitious, comprehensive and stable policy framework at EU level and also in each of the Member States.

Against this landscape, challenges still remain, such as:
• Avoiding the trap of taking a ‘silo approach’ to energy systems, which fails to take account of the synergies between electricity and heat;
• Ensuring affordability and competitiveness, as CAPEX (capital expenditure) becomes more important than OPEX (operating expenses) in driving the development of our energy system;
• Addressing the lack of legislative certainty in some areas such as in relation to the uptake of renewable and low-carbon fuels, or the continuity of policy incentives.

The start of a new legislative term at EU level and across many national political landscapes, presents important opportunities for the cogeneration sector. To sum up:
• The cogeneration industry is committed to delivering on high ambitions when it comes to decarbonisation and emission reductions.
• We need to find solutions that meet the needs of individual customers, in order to break down silos and ensure consumer acceptance and engagement.
• Our role, as COGEN Europe, is to share this message and make it understandable. We must spread the word among decision makers and with stakeholders across the whole energy value chain.

Let me close with a saying that was brought up by Kelvin Ross during the first panel discussion this morning: ‘Think Global – Act Local’. I think this is the approach we need in these demanding times!

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PRESS RELEASE

24 September 2024

On 19 September, European Commission President Ursula von der Leyen and International Energy Agency (IEA) Executive Director Fatih Birol held a joint press conference in Brussels to address Ukraine’s energy security for the upcoming winter. A day later, on 20 September in Kyiv, European Commission President Ursula von der Leyen announced a plan to provide up to €35 billion as an EU loan to Ukraine, to be directed towards Ukraine’s recovery.

Marking 1000 days since the launch of Russia’s full-scale military aggression against Ukraine, the press conference addressed the immediate energy needs of the Ukrainian population, while also working towards making Ukraine’s energy system more resilient in the long term. Due to the continuing and intensified attacks carried out by the Russian military forces, half of Ukraine’s energy infrastructure has been destroyed.

The EU has already mobilised resources to address the situation over the past years and months, sending equipment to affected regions in Ukraine. This includes a Lithuanian cogeneration plant that is being dismantled and sent to Ukraine.

Over the coming months, the EU and IEA have announced that they will work together to ensure winter preparedness for Ukraine, focusing on:

• • Efforts to restore gigawatts of power for the winter, covering 25% of Ukraine’s needs (‘Repair’);

• • Synchronization of Ukraine’s grid with the European grid, covering 12% of Ukraine’s winter energy needs (‘Connect’);

• • Boosting decentralized production and sharing expertise in cyber awareness and security (‘Stabilize’).

Responding to these developments, COGEN Europe’s Managing Director, Hans Korteweg, says: “We welcome the EU’s announcement to support Ukraine on ensuring security of energy supply through the upcoming winter. In view of Russia’s continuing military aggression against Ukraine, damage to energy infrastructure risks leaving people without access to basic utilities, including heating and electricity. COGEN Europe and its members are committed to contributing their expertise and know-how, notably regarding the deployment of distributed cogeneration systems, which save energy and enhance resilience. We are willing to collaborate with the European Commission and with the competent Ukrainian authorities, in order to provide solutions both for the coming winter and also for rebuilding Ukraine’s energy infrastructure in a way that strengthens resilience and energy independence, alongside sustainability.”

PRESS RELEASE

12 September 2024

Yesterday (11 September), the European Commission published its 2024 ‘State of the Energy Union’ Report, which takes stock of progress achieved towards the EU’s energy policy objectives for 2030 and beyond. The report sets out the EU’s achievements in the areas of renewable energy, energy efficiency and security of supply over recent years, against the backdrop of tremendous challenges posed by the war in Ukraine and post-pandemic recovery.

In its report, the Commission highlights the following:

• • The use of energy from renewable sources has grown to almost a quarter (23%) of total energy consumption, with most growth achieved in the electricity generation sector (41.2%) and more modest progress in the heating & cooling (24.9%) and transport (9.6%) sectors.

• • Biogas and biomethane production across the EU has reached a total of 21 bcm (billion cubic metres) per year, thereby increasing the availability of renewable gases.

• • Renewable hydrogen production capacity is gradually expanding (estimated at an additional 0.8 GW in 2024), as initiatives like the European Hydrogen Bank aim to stimulate both the supply of and demand for clean hydrogen.

• • Primary and final energy consumption decreased by 4.1% and 2.8% respectively between 2021 and 2022. These savings narrow the gap to achieving the 2030 target, but an assessment of Member States’ commitments show that further efforts will be needed to meet the EU’s collective energy efficiency target.

Reacting to the 9th ‘State of the Energy Union’ report, COGEN Europe’s Managing Director, Hans Korteweg, said: “COGEN Europe supports the European Commission’s call for faster uptake of energy efficiency measures, alongside the mobilisation of renewable heating and cooling resources. Unlocking the potential of high efficiency cogeneration will help to further reduce primary energy consumption, as well as ensuring the most efficient use of renewable energy sources to produce both electricity and heat. We will call on the incoming Commission to implement the relevant legislation in a way that takes full advantage of the benefits that cogeneration can deliver.”

High efficiency cogeneration is one of the clean energy technologies recognised in the recent ‘Fit for 55’ wave of EU legislation, in the framework of the European Green Deal. EU Member States are required to assess the potential for high efficiency cogeneration in their Comprehensive Assessments for Heating and Cooling and take action to realise its potential under the Energy Efficiency Directive (EED). Cogeneration is to be prioritised over less efficient power-only thermal plants, as mandated both by the EED and the Renewable Energy Directive (RED III). Cogeneration solutions are further recognised in the context of the Net-zero Industry Act (NZIA), as well as other EU legislation relating to energy and climate objectives.

The State of the Energy Union Report 2024 (and supporting documents) can be found on the European Commission’s website.

COGEN Europe’s Policy Priorities 2024-2029 are set out in the document: The Role of Cogeneration in Europe’s Energy Transition – Enabling an Efficient Pathway to Net Zero

PRESS RELEASE

18 July 2024

As the process of appointing a new European Commission gets underway, COGEN Europe is calling on the EU institutions to adopt a smarter and more flexible approach to the decarbonisation of Europe’s energy system. In order to meet the EU’s ambitious emissions reduction targets for 2040 and 2050 (i.e. Net Zero emissions), it will be necessary to support decentralised energy systems that make the most efficient use of low-carbon and renewable energy sources including biogas, biomethane, biomass and clean hydrogen. In this context, cogeneration has a vital role to play as an efficient, flexible and reliable means of producing electricity and heat for use in industry and in buildings.

Responding to the latest news from Strasbourg, COGEN Europe’s Managing Director, Hans Korteweg, said: “We congratulate Ursula von der Leyen on her re-election as President of the European Commission, and we also strongly welcome her commitment to develop and implement a Clean Industrial Deal that will help to channel investments in clean technologies and support the decarbonisation of energy-intensive industries.”

“Following the elections to the European Parliament in June, there is a clear political mandate for maintaining the goals of the European Green Deal in terms of reducing greenhouse gas emissions and working towards climate neutrality by 2050, but also for implementing policies in a more flexible way that enhances Europe’s industrial leadership and economic competitiveness.”

“COGEN Europe wants to make a constructive contribution to this ongoing discussion, and today we are publishing a new document that sets out our Policy Priorities for the period up until 2029.”

“In our new publication, COGEN Europe is making the case for a more integrated, efficient, resilient and decarbonised European energy system. In particular – we want to see a more decentralised approach that combines gas, electricity and heat networks and makes the best use of clean and renewable energy sources that are available locally – from biogas and biomass to excess heat from industry. In this context, we are convinced that cogeneration will have an increasingly important role to play. Looking ahead to 2050, over 50% of all thermally generated electricity and at least 70% of non-electric heat should come from cogeneration.”

“We look forward to working with the newly elected Members of the European Parliament and with the incoming European Commission over the next five years.”

COGEN Europe’s Policy Priorities 2024-2029 are set out in the document: The Role of Cogeneration in Europe’s Energy Transition – Enabling an Efficient Pathway to Net Zero