Veolia Ambitions to Lead European District Heating by 2030 and Launches New Offer in Urban Energy

"In the context of cities facing growing energy challenges due to the 2022 energy crisis and rapid urbanization, and in line with GreenUp strategic program, we are strengthening our ambition to lead European district heating by 2030 supported by the launch of the new Ecothermal Grid offer. It is aimed at scaling up innovative technologies, including AI, for the next generation urban heat & cold networks. It is strategically built upon our powerful ‘stronghold’ in operating Thermal Energy Networks, which is essential to accelerating the decarbonization and the energy resilience of cities. It leverages Veolia unique expertise in waste, water, and energy services to offer an integrated cost efficient solution”, said Estelle Brachlianoff, CEO of Veolia.

Urban Heating at a Turning Point

District heating is emerging as a strategic solution for cities seeking secure, affordable, and low-carbon energy. Heat already represents 50% of energy consumed in Europe and, as global urbanization accelerates, the pressure on cities to ensure a reliable and resilient energy supply continues to grow. Urban areas already generate 80% of CO₂ emissions, making the decarbonization of urban heat a critical priority. According to the International Energy Agency (IEA), nearly two thirds of heating energy still relies on fossil fuels.

In addition, the volatility of energy markets and rising fuel costs further highlight the need for resilient, locally sourced, affordable, efficient and decarbonized heating, cooling, and electricity solutions.

Strong Regulatory Momentum

The urban heating market is expanding rapidly, valued at €60 billion in 2023 and expected to reach €80 billion by 2030. This growth is driven by strong regulatory momentum, including the EU mandate for district heating in large cities, the urgency of Europe’s energy crisis, the need for affordable and secure energy, the Net Zero 2050 target, and the critical need to decarbonize heating and cooling, which currently account for 40% of global CO₂ emissions.

Yet for urban heating to fully match Europe’s ambitions, several key conditions must be met:

• Priority must be given to local energy-based projects capable of reducing dependence on imported fuels,
• Permits approvals must be significantly accelerated to enable the deployment of large-scale infrastructure at the pace required,
• Guarantee funds for geothermal projects such as those already implemented in Hungary and France must be expanded to unlock the full potential of this strategic renewable energy source,
• A stable and predictable regulatory framework is essential to secure long-term investments and accelerate decarbonization trajectories.

Shaping the Next Generation of Urban Heating

With decades of global expertise, Veolia leverages its unique geographical footprint, its capacity to leverage waste and water activities to produce local energy, and a leadership in the energy sector, mastering the entire value chain. This know-how positions Veolia as a key player in transforming energy systems, fully equipped to seize growth opportunities in urban heating and accelerate the decarbonization of cities and their security of supply. With up to 500 heating networks serving 7 Million customers (or 9% of Europeans) and an average efficiency of 88% (vs on average 75% in Europe), Veolia has already helped reduce almost 2 Mt CO₂ between 2021 and 2024.

Facing these challenges, Veolia reinforces its role in the energy transition with the Ecothermal Grid offer, tackling availability, affordability, and decarbonization. It optimizes district heating and cooling by decarbonizing existing networks and developing new ones.

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ABOUT VEOLIA

Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with 215,000 employees, the Group designs and deploys useful, practical solutions for the management of water, waste and energy that are contributing to a radical turnaround of the current situation. Through its three complementary activities, Veolia helps to develop access to resources, to preserve available resources and to renew them. In 2024, the Veolia group provided 111 million inhabitants with drinking water and 98 million with sanitation, produced 42 million megawatt hours of energy and treated 65 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 44.7 billion euros in 2024. www.veolia.com

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