11. 9. 2024

Memorandum of Understanding

The hot pipeline from Dukovany to Brno has the green light. Government, ministries, and regions agree with the project


One of the largest energy projects in the Czech Republic - the construction of the hot pipeline from the Dukovany Nuclear Power Plant to Brno - is entering another important phase. The project, which aims to ensure energy self-sufficiency and reduce emissions in southern Moravia, has been supported by all key players with the approval of a joint memorandum. Participants include the Government of the Czech Republic, Teplárny Brno, the South Moravian Region, the Vysočina Region, the Statutory City of Brno, ČEZ, and the Ministries of Environment, Finance, Industry, and Transport. The Memorandum was approved by the Government at its meeting today.

 

The subject of the joint memorandum is to contribute as quickly and efficiently as possible to the fulfillment of all strategic objectives of the project. These include the commencement of the trial operation of the hot pipeline by the end of September 2030 and the start of the supply of thermal energy from Dukovany to Brno in the newly built infrastructure from 1 January 2031. An integral part of the Memorandum is also the joint implementation of the objectives in the field of investments in environmentally sustainable resources. Given the complexity and importance of the project, the individual preparatory phases are coordinated not only between the two regions through which the pipeline will run, but also between the ministries, the management of the statutory city of Brno, and, above all, between ČEZ and Teplárny Brno. The latter is the main investor and contracting authority for the construction.

 


The heat pipeline from Dukovany to Brno is over 42 kilometers long and is one of the main strategic projects not only of the Statutory City of Brno but also of the Czech Republic. Its importance and scope fulfill the vision of the State Energy Concept. The aim of the pipeline is to reduce the dependence of Brno and its surroundings on gas and other fuels, to stabilize the price of heat for households, and to reduce the production of harmful substances. It is thus a completely emission-free heat source. Thanks to the supply of heat from the Dukovany Nuclear Power Plant, the production of C02 in Brno will be reduced by up to 230,000 tonnes per year.

 

"Energy security and sovereignty are among the priorities of our government. We are therefore working on long-term solutions and projects that will ensure stable, cheap, and environmentally friendly electricity, gas, and heat supplies for our cities, municipalities, businesses, and households. And the hot pipeline project is one of them. It will enable us to use heat from nuclear power plants efficiently and reduce our dependence on fossil fuels. It will also strengthen the region's energy self-sufficiency. Investments in sustainable development and clean resources are one of the pillars of Restart Czechia, helping to modernize the Czech economy, improve the quality of life of citizens and also improve the environment," says Czech Prime Minister Petr Fiala.

 

With its parameters, Horkovod is one of the main energy projects in the modern history of the statutory city of Brno.

 

"Brno is a modern and developing city. That is why we have been pushing for the Horkovod since the energy crisis and I am glad that we have the continued support of the government and other ministries. The project fits in with our energy plans, such as reduced dependence on gas and lower prices for end consumers. Our goal is not only self-sufficiency, but also sustainability, and above all, ecology is absolutely crucial. The city of Brno already joined the Compact of Mayors for Sustainable Energy and Climate in 2017 and committed to reducing CO2 emissions by at least 40 percent by 2030," explains Markéta Vaňková, Mayor of the Statutory City of Brno.

 


The hot water pipeline will provide up to half of the heat consumption in Brno, which currently uses 80% natural gas for heating. After the hot pipeline is put into operation, the Brno heating plants will use only 10% of the heat energy from gas, the hot pipeline will cover up to 50% of the energy needs and will supply heat to 104,000 households. Another 25% of the heat will come from the incinerator and 15% from the wood chip boiler.


"The newly constructed hot water pipeline will also provide our customers with a stable and competitive price. Customers will be assured that there will be no price fluctuations. However, we are systematically working on further decarbonization by converting the steam networks to hot water, with only 11 km of the initial 96 km of steam lines remaining to be reconstructed.  These too will be replaced by hot water distribution networks within three years. This modernization project has a major positive impact on reducing heat losses in heat distribution and improving the environment in the region," says Petr Fajmon, CEO of Teplárny Brno.

 


The route of the hot water pipeline will lead from the Dukovany power plant to Brno through undeveloped land near fourteen villages in South Moravia and Vysočina. In addition to Dukovany, these include Horní Dubňany, Dolní Dubňany, Jamolice, Dobřínsko, Moravský Krumlov, Nová Ves, Oslavany, Ivančice, Neslovice, Tetčice, Omice, Střelice and Troubsko. The heat pipeline will be further directed towards Brno to the Bosonohy district, from where Teplárny Brno will distribute heat through the town via two branches. The heat pipeline itself will be deep in the ground, so there is no risk that it will disturb the landscape. The project will also help create much-needed jobs in both regions.

 

"We have previously supported the hot water pipeline in the update of the regional energy concept. We therefore view the project positively within the framework of our strategic vision and priority strategic concepts. Both in the field of environment and technical infrastructure, as well as in the field of serviceability of the territory, competitiveness, entrepreneurship, innovation, and research. In addition, we very much appreciate the positive environmental impact of the pipeline," says Jan Grolich, the Governor of the South Moravian Region.

 


"The management of the Vysočina Region accepts the common interest in the implementation of the project of the company Teplárny Brno and perceives its benefits both in terms of national interest and in the context of possible regional impacts, including the territory of Vysočina. We are ready to provide Teplárny Brno with the necessary cooperation to enable the implementation of the heat pipeline project," says the Governor of the Vysočina Region, Vítězslav Schrek.

 


The total value of the project amounts to CZK 19 billion. The envisaged financing model for the hot water pipeline involves the use of standard sources of financing, i.e. a combination of external sources, such as loans and Teplarne Brno's own financial resources, which will be used mainly in the initial phase. The project is seeking CZK 10 billion from EU subsidies.  As the heat production will be environmentally friendly, the project for the construction of the hot water pipeline meets very strict criteria for obtaining them. In addition to Teplárny Brno, ČEZ, the owner of the Dukovany Nuclear Power Plant, is also counting on the necessary investment. It will build a heat exchange station on the plant site at a cost of approximately CZK 3 billion.

 


"We coordinate and plan everything around the hot water pipeline with Teplárny Brno. Our task is to take the heat from the power plant unit to the boundary of the site. Even so, it will be a significant investment. I am glad that this project is moving forward in cooperation with the Czech government. South Bohemia can serve as an example of good practice in the use of nuclear sources for heat generation. Our Temelín Nuclear Power Plant here supplies heat to České Budějovice by means of a new heat pipeline," says Daniel Beneš, CEO of ČEZ.  

 


The construction of the hot pipeline is planned for 2027 and the construction works will take about four years. Preparatory activities on the territory of the city of Brno will begin as early as 2025. The expected start of operation of the hot pipeline is planned for 2030.

 


Media contact:

Kristýna Chrenová, media representative of the hot pipeline project

Tel: 602 638 143

E-mail: chrenova@teplarny.cz