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CPL CONCORDIA, E.ON, CAP Group and NET together in support of energy efficiency

CPL CONCORDIA and E.ON have been awarded the contract for the construction and operation of the new 2 MW cogeneration plant for the production of electricity

serving the CAP Group wastewater treatment plant in Pero and producing heat for users served by NET's district heating network

Milan, 27 March 2019 - E.ON, one of the leading energy operators in Italy, and CPL CONCORDIA, an energy multi-utility, have signed an important public-private partnership agreement with the CAP Group, manager of the integrated water service of the Metropolitan City of Milan, and NuovEnergie District Heating (NET), a district heating management company owned by the Municipalities of Rho, Pero and Settimo Milanese.

The agreement provides for the construction of a new high-efficiency cogeneration plant for the combined generation of electricity and heat at the CAP water treatment plant in Pero (MI). Under the terms of the agreement, E.ON and CPL CONCORDIA will build and operate the plant for the production of electricity for the needs of the treatment plant and heat (hot water) for NET's district heating networks for a period of 15 years.

The energy efficiency intervention will be jointly developed by E.ON and CPL CONCORDIA as an ESCo, thus assuming the burden of the investment. The procedure was carried out using Article 183 c.15 of the Public Procurement Code, relating to project financing and is innovative in that for the first time the proposal was made to two administrations jointly, CAP and NET.

The Pero purification plant, located in the southern area of the municipality, has been in operation since 1999: it is a biological activated sludge plant with extended oxidation and is used for the treatment of urban wastewater from various municipalities in the Milan area including Pero and Rho.

The new cogeneration plant, mainly composed of a 2 MW high-efficiency methane gas engine and a heat recovery boiler, will ensure efficient and competitive operation, allowing significant energy and economic savings for CAP and NET and at the same time a lower production of polluting emissions such as climate-altering gases. Cogeneration modules, in fact, by simultaneously producing electrical and thermal energy, increase the efficiency of fossil fuel use by up to over 85%.

In addition, heat recovery through cogeneration makes it possible to produce thermal energy more efficiently to be injected, in the form of superheated water, into the district heating network managed by NET serving the municipalities of Pero and Rho.

District heating networks, exploiting the heat produced by high-efficiency centralized systems, are particularly interesting for municipalities belonging to colder climate zones. In fact, many municipalities are equipping themselves with innovative cogeneration units combined with district heating networks, taking advantage of the economic incentives available through the Energy Efficiency Certificates market which, in the case of new networks, provide for an increased incentive period.

This growth will also benefit the territory thanks to the improvement of CAP's energy performance and the increase in the availability of the hot water carrier that feeds the existing district heating network or that can be developed to reach neighboring municipalities.

Under the terms of the agreement, E.ON and CPL CONCORDIA will be responsible for the construction and operation of the new plant. Thanks to the cogeneration solution, about 13 GWh of electricity and about 13 GWh of thermal energy will be supplied to the CAP Group and NET every year; It is scheduled to enter service by the end of 2020.

The presentation press conference was attended by Alessandro Russo, Chairman and Chief Executive Officer of the CAP Group, Lorella Alda Bigatti, Sole Director of NET, while Alberto Radice, Chief Sales Officer B2BL-B2M, representing E.ON Italia, and Paolo Barbieri, Chairman of CPL CONCORDIA, representing CONCORDIA.

"Cogeneration is a key technology to contribute to the efficient supply, and therefore to the sustainable development, of large industrial and public companies", Commented Alberto Radice, Chief Sales Officer B2BL-B2M of E.ON Italia. "This is an area in which we have state-of-the-art expertise on international markets and that allows us to establish long-term partnerships to help our business customers consume less and better, in line with both our customer orientation and our concept #odiamoglisprechi".

"With the Pero project, CPL CONCORDIA confirms its position as a national leader in its ability to propose and implement cogeneration," said Paolo Barbieri, President of CPL CONCORDIA. "The efficiency project that we are about to implement is one of the most articulated because it aims to satisfy two public administrations, with their particular technical and administrative needs. CPL and E.ON have worked together on the financial, legal and technological aspects to create a cost-effective and innovative solution."

"This agreement is part of the CAP Group's research and development strategy, which includes a strong commitment to technological applications of resource management and the implementation of increasingly sustainable and innovative solutions. This project also gives us the opportunity both to optimize the energy efficiency of the Pero purification site and to bring an additional service to the municipalities of our territory" says Alessandro Russo, Chairman and CEO of CAP Group.

"The project undoubtedly represents an important example of Public-Private Partnership, a tool that is now punctually regulated by the Procurement Code," said Lorella Alda Bigatti, Sole Director of NuovEnergie District Heating. "It is the demonstration that the public and private spheres can work together and with mutual benefit, also developing complex projects, with high environmental value and enhancement of the territory."

According to the EU's long-term strategic vision, summarized in the document "A Clean Planet for All", published last December, there is a possibility and opportunity in Europe to extend district heating to cover up to 50% of heat demand compared to the current 10%. Using the heat generated as a by-product of industrial plants and energy production means promoting the principles of the circular economy. The signing of the agreement between E.ON - CPL CONCORDIA, CAP and NET represents an important milestone in the direction of efficiency and sustainability and will result in a long-term collaboration for high value-added projects.