European support for sustainable district heating and cooling grid in Zuid-Limburg

The European Commission is awarding a €13.5 million grant to Mijnwater to support the expansion of its sustainable district heating and cooling network in Zuid-Limburg in The Netherlands. This funding is provided under the Public Sector Loan Facility (PSLF), a key component of the Just Transition Mechanism, which supports regions in their transition to a climate-neutral economy. The grant is made possible by a €90 million loan from the European Investment Bank (EIB) to Enexis, which will subsequently be used to finance its subsidiary Mijnwater Warmte Infra B.V.

Based in Heerlen, Mijnwater has drilled deep wells into disused mine tunnels in the area for distribution through its smart grid to maintain optimal temperatures in households and businesses. This reduces the use of gas for heating or cooling, while significantly reducing CO2 emissions.

Ramping up the production of renewable energy and supplying district heating and cooling are of increasing strategic importance for delivering the National Energy and Climate Plan in the Netherlands. The project is also aligned with EU climate objectives and is identified in the Territorial Just Transition Plan for the Zuid-Limburg region. Mijnwater’s system is demand-driven and allows for energy exchanges between customers, recycling waste heat or cold to fulfil neighbouring demands as well as for seasonal energy storage by reinjecting remaining energy back into the geothermal wells. Mijnwater currently supplies more than 1 000 households and businesses with a network of 24 kilometres of pipes. The combined EU grant with EIB’s financing supports an expansion programme which aims to have over 5 400 connections by 2031 through a network of over 49 kilometres.

Emma Toledano, Director at European Commission, Directorate-General for Regional and Urban Policy, said:

Mijnwater is one of the most advanced 5th-generation district heating and cooling networks in Europe. I am proud to announce that the Public Sector Loan Facility will help expand this network in the municipality of Heerlen, further contributing to phasing out of natural gas in the area.

Paloma Aba-Garote, Director of CINEA added: 

This project is a great example of the shift towards a climate-neutral economy by using sustainable and low carbon energy sources. Thanks to the support of the Public Sector Loan Facility, we are making real progress in sustainable development. I am looking forward to seeing how this project will benefit the daily lives of citizens in the Zuid-Limburg region.

Ria Doedel, Director of Mijnwater stated: 

With this European support, Mijnwater can not only implement the expansion plans outlined in the Master Plan adopted in 2023, but also connect more social housing to the sustainable heating and cooling network, This makes the energy transition more accessible to an important group in our society.

Background

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The Netherlands owns a 5,2% share of the EIB. It makes long-term finance available for sound investment in order to contribute towards EU policy goals and national priorities. More than 90% of its activity is in Europe. Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, sustainable mobility, drinking water, healthcare and SMEs. 

Mijnwater services the Parkstad area in Limburg with sustainable heating and cooling of private homes and other buildings. It does so through an innovative and reliable 5th generation heating and cooling network. By smart use of, amongst other things, disused mine tunnels as renewable heat and cooling sources, Mijnwater contributes to the energy transition and the cutting of CO2 emissions. 

The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM) – a key tool of the European Green Deal Investment Plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy. The PSLF combines loans from the European Investment Bank (up to around €6-8 billion) with grants from the European Commission (up to €1.3 billion). The combined support aims to attract additional investments for public sector projects in regions most affected by the green transition, such as the Zuid-Limburg region, as outlined in the Territorial Just Transition Plans. This will help meet their development needs as they move towards a climate-neutral economy. Each Member State creates these plans to identify the challenges faced by just transition regions, along with their development needs and targets for 2030. The combination of the European Investment Bank loan and the EU grant will help fund projects that do not generate enough revenues to cover their costs. The PSLF is managed by DG REGIO and implemented by CINEA.

The European Climate, Infrastructure and Environment Executive Agency (CINEA), is an Executive Agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment and maritime fisheries and aquaculture. CINEA aims is to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge sharing and create synergies between programmes - to support a sustainable, connected, and decarbonised Europe.

The Directorate-General for Regional and Urban Policy (DG REGIO) is the department of the European Commission responsible for EU policies on regions and cities. It develops and carries out the Commission's policies on regional and urban policy. It assists the economic and social development of the less-developed regions of the European Union.