August 13, 2018

3 reasons to choose geoenergy for a logistics center

Logistics companies are increasingly interested in minimizing the environmental impacts of their operations. At the same time, energy price fluctuations are causing concerns in the economy, and trying to budget energy costs can seem more like a lottery game. Geoenergy offers a sustainable, stable and financially sensible heating and cooling solution for logistics centers.

The pressure to move towards carbon neutral future is recognized in companies and, like other industries, the logistics industry has launched concrete measures to increase sustainability and reduce the carbon footprint of operations.

Adven is a pioneer in realizing geoenergy projects in large properties. We have learned a lot from these projects so far and we have listed the three most important benefits that our customers have gained through geoenergy solutions.

1. Predictable energy costs: lower and stable energy price

Geoenergy production is literally on a firm footing, also in terms of cost structure: using heat-pump technology, the energy stored in bed rock can be efficiently utilized both to heating and cooling, depending on the time of year. The electricity needed for production can be generated using green electricity at a highly predictable, fixed price.

The price of the geoenergy is derived simply from the investment made by Adven, the remote monitoring of the plant and operating costs. Many other modes of heating incur costs from fluctuating fuel prices, repairs and upgrades to equipment and the transmission network, as well as continually growing fossil fuel prices and environmental protection taxes.

In Adven’s partnership model, the price of energy is essentially a fixed price for the full contractual period, which means there is no real pressure to raise prices every year.

“For us, the price of energy is generally tied to the green electricity used by the heat pumps,” explains Timo Koljonen, Adven’s VP of Geoenergy.

2. Sustainability: geoenergy an efficient way to reduce CO2 emissions

Minimizing environmental impacts has become a part of day-to-day operations in the logistics industry. Logistics companies are re-evaluating their fuel purchases and systematically monitoring their drivers’ driving behavior. When looking at a company’s operations as a whole, the type of energy chosen for its properties also bears importance.

Buildings heated and cooled with geoenergy do very well in ecological comparisons. It is considerably easier to make such buildings completely carbon neutral than properties heated using other fuels. Electricity generated using green, renewable forms of energy is typically used alongside geoenergy.

In logistics centers that store frozen products, the condensation heat generated by the refrigeration equipment can be recovered and used to heat the building or to charge geowells.

This is how the solution for S-Group’s logistics center in Sipoo, for example, was realized.

3. Care-free: Adven takes care of the investment and the plant’s operation

One of the most significant benefits Adven’s customers have enjoyed in their geoenergy solution is the investment freedom that comes with it.

“With our Energy as a Service model, the customer is not required to make its own investments in the energy solution. Since Adven takes care of the necessary planning, dimensioning and investments related to the geoenergy solution, our customers can focus more of their capital on running their own business, other R&D investments or improving their facilities,” stresses Adven’s Project Manager, Lasse Aitamaa.

The company thus does not need to set aside money in their annual or project budget for the construction of a heating system. In many cases, this makes it possible to start up geoenergy operations more ecologically, more affordably and sooner than would be possible if the solution were funded by the company itself.

Compared to a heat-pump facility that is managed independently by the customer, Adven’s approach is rather risk-free for customers. It is also very much in Adven’s interest to use the energy plant it owns as efficiently as possible, which further works to the customer’s advantage.

“Since Adven owns and uses the geoenergy plant itself, it is also in our best interest to achieve optimal dimensions and technical solutions right from the start. For us, it is important that the solution works flawlessly and with high efficiency,” explains Aitamaa.

Adven is a logistics-company partner that takes responsibility for the entire energy system – not just a single project or area.

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