For more than 25 years, Outokumpu has delivered waste heat from its steel production in Avesta, Sweden to the local district heating network in collaboration with the energy group Adven. Now the next big step is being taken as the amount of recovered waste heat is expected to double from 40 to over 80 GWh per year. This corresponds to the energy needs of around 4,000 households and covers a third of Avesta’s total heating needs.
“In practice, we are reducing our fuel use. The new waste heat means that we can reduce burning waste and biofuels to keep the heat going. This is a resource that already exists and that is now doing real good instead of being cooled off,” said Henrik Johansson Casimiro, SVP Sweden and Netherlands at Adven.
“Previously, we had to cool the heat from our process. In the future, we can instead use it to heat the whole of Avesta more sustainably, as we can deliver larger surpluses to the district heating network. It is a clear example of how industry can contribute to the decarbonization,” said Rickard Eriksson, site manager at Outokumpu in Avesta.
Thanks to the increased waste heat, the operating time of the solid fuel boilers at Avesta’s district heating plant can be reduced, especially during the summer months when the heat demand is lower. This results in an estimated reduction in carbon dioxide emissions of approximately 10,000 tons per year. This increases the flexibility of the energy system, reduces the load on the boilers, and optimizes the use of available energy.
The surplus heat is stored in Avesta’s 750 MWh geothermal accumulator, which functions as a kind of heating battery. When production exceeds demand, the heat can be stored and then output when the need increases.
“Thanks to the accumulator, we can continue to utilize residual heat even when the district heating network is temporarily unable to receive more. This makes the system smarter and more resilient,” explained Johansson Casimiro.
The new waste heat solution is planned to be put into operation in the spring of 2026. Once it is up and running, Outokumpu will become an even more central part of Avesta municipality’s energy transition, where waste heat replaces supplied fuels.
“Close collaboration with industry is a key focus for Adven, and it is important for us to harness the surplus energy that exists in industry. Being able to do this in Avesta is especially gratifying as it further strengthens our position in recycled and renewable energy,” said Johansson Casimiro.
“We use a high share of recycled content in our production, mainly scrap. We are continuously working on energy efficiency measures and finding opportunities to use our surplus heat. District heating is a good way to promote circularity in society and reduce the consumption of finite resources, something that we all benefit from. District heating is an important part of the circular economy and one that we at Outokumpu would like to contribute to,” added Eriksson.
