The 5th generation geothermal district heating and cooling system helps decarbonise the industry while moving towards decentralised energy production, claim QHeat’s Chief Technical Officer Rami Niemi and Chief Business Officer Vesa Valonen.
Europe’s heating sector is at a turning point.
As global climate targets grow nearer, heating represents approximately 50 percent of Europe’s total energy consumption, with fossil fuels accounting for roughly 60 percent of this demand.
Yet there’s light at the end of the tunnel: for example, according to the IEA, gas demand in buildings is projected to decline by 65 billion cubic meters by 2030 in advanced economies, thanks to the growing adoption of heat pumps.
With fossil-based heating being phased out, the door is open for a technologically advanced yet environmentally sound concept based on renewable energy: the 5th generation geothermal district heating and cooling system (5GDHC). It’s also known as a local low-temperature heating and cooling network.
“The solution is local energy distribution without combustion. The system combines low temperature heating network infrastructure, heat pumps, and a decentralised geothermal well system into a single smart entity,” says Vesa Valonen, QHeat’s Chief Business Officer.
The low-temperature heating and cooling system could open up new market opportunities globally. Central Europe offers particularly strong potential for this approach as natural gas-based heating is being phased out in the area. In Germany, for example, several similar low-temperature district heating systems were being developed across the country in 2022 already.
Today’s district heating networks rely on combustion-based energy to maintain the high temperature of water enabling heat transfer. The 5GDHC system, however, utilises low-temperature water circulating in a bidirectional two-pipe network. The network operates at 20-45 degrees celsius, making thermal losses minimal. Both heating and cooling can occur simultaneously within the same loop.
“Our approach is a local low-temperature network powered by deep geothermal wells. These wells not only produce renewable heat, but also provide heat storage that balances energy use across seasons,” says Rami Niemi, QHeat’s founder and Chief Technical Officer.
Each building – whether an apartment block, a school, or industrial facility – in this network uses a heat pump to raise or lower the water temperature according to its demand. Excess energy generated during summer months from waste heat sources, such as data centres or industrial processes, can be stored into the geothermal wells and used as heat during the coldest winter days.
This system aligns with the EU’s renewable energy targets and upcoming heating and cooling strategy: it accelerates the decarbonization of the energy sector by offering a low-emission solution with integrated waste heat recovery. In other words, deep geothermal wells form the backbone of an efficient, flexible, and future-proof energy system.
By combining a closed-loop design with heat storage, the heating and cooling solution creates a decentralised energy system that isn’t dependent on any single power plant or supplier. Instead, each end user becomes a ‘prosumer’: both a producer and a consumer of energy.
A recent example is the developing residential area of Finnoo in Espoo, Finland. Real-estate developers Avara Oy and TA-Asunnot Oy partnered with QHeat to design a local low-temperature network powered by geothermal wells, helping achieve ESG targets.
QHeat designed and simulated the energy system, drilled the boreholes, and operates the thermal network for the joint venture.
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In Finnoo, approximately 250 apartments in six buildings are heated and cooled through a shared low-temperature network. In a nutshell, the system consists of three geothermal wells and a heating center with a heat pump. In addition to an annual emission deduction of around 350 tons, minimal environmental impact, and competitive costs, the heat pumps achieve a coefficient of performance (COP) of up to 6,4.
“The Finnoo project proved that it’s possible to meet 100 percent of the area’s heating demand without backup heat sources,” Niemi says.
This heating and cooling network operates all year round and can be expanded as the area grows. Thanks to its modular design, more buildings can be connected into the network without major changes.
The Finnoo project paves way for larger-scale cases in QHeat’s future, especially considering European cities that are phasing out of gas-powered heating.
“The 5th generation heating and cooling system is ideal for areas that lack an existing district heating infrastructure or that are transitioning away from gas-based heating,” says Vesa Valonen. In terms of benefits, the 5GDHC system is a win-win for everyone involved.
Energy companies can implement decentralised heating networks, while construction companies and property owners benefit from lower energy costs and progress towards carbon neutrality targets. Waste heat producers gain new streams of revenue.
And on a broader scale? Cities move towards a future-proof, decarbonised alternative to combustion-based energy – and adopt an infrastructure that works within planetary boundaries, not against them.
Learn how QHeat can future-proof your heating and cooling systems and contact us to discuss your project.
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