Event: Building bridges for the energy transition

Energy transition from an infrastructure perspective
In a rapidly changing environment, we face challenges from increased regulations, climate change, cybersecurity threats, and societal demands. As an institutional investor, PGGM recognizes its critical role in addressing these challenges. Therefore, PGGM together with PFZW co-created a 3D-investment strategy towards 2030, ensuring the entire investment portfolio is managed with a focus on return, risk, and sustainability. Infrastructure actively contributes to achieving this ambition. Dennis van Alphen, Head Infrastructure PGGM: ‘Most of our portfolio companies already have Paris-aligned impact plans to reach climate targets. We are committed to 100% alignment across all companies in our infrastructure portfolio by 2030. Collaborating with PFZW, we developed the Climate and Energy Transition Solutions Mandate, empowering us to also make direct investments in early-stage climate solutions in Europe with focus on the Netherlands and accelerate the energy transition.’

The significant role of collective heating systems in the sustainability of the built environment
Collective heating systems play a significant role in enhancing the sustainability of the built environment. They centralize heat production, often utilizing renewable energy sources, and distribute heat to multiple buildings, increasing efficiency and reducing individual carbon footprints. However, achieving CO2 reduction in the built environment is a challenging task, as highlighted by Joris Wijnhoven, a specialist in Energy Systems at the Dutch Association for Sustainable Energy (NVDE): ‘The regulatory environment can impact the success of collective heating systems. Supportive policies, incentives for sustainable practices, and clear regulations play a key role in promoting the growth of these systems. The success of collective heating systems also relies on the acceptance and active participation of the community. Building community awareness and engagement is vital. Finally, the costs of implementing collective heating systems can be a challenge. Securing financing and demonstrating the long-term economic value of these systems are critical aspects for encouraging people to use them widely.’

Promising heat technologies from Ennatuurlijk, RIFT and Exergi
To strengthen one another and learn from these challenges, knowledge-sharing is key. This is why Ernst Japikse (CEO of Ennatuurlijk), Anders Egelrud (CEO of Stockholm Exergi), and Mark Verhagen (CEO and co-founder of RIFT) shared their successful strategies, technological innovations, and insights into navigating regulatory landscapes with both each other and the audience.
Ennatuurlijk offers various local heating and cooling solutions, allowing the Netherlands to gradually transition away from natural gas and become more sustainable. Stockholm Exergi is among the first companies globally to develop a model that facilitates the shift from reduced carbon dioxide emissions to negative emissions through bio-energy with Carbon Capture and Storage (BECCS). Meanwhile, RIFT enables businesses to decrease their CO2 emissions by implementing iron fuel technology. They are developing a new class of cost-effective energy systems to ensure a reliable and fully renewable heat supply throughout the year.

Together we can make it happen
The panel discussion and interaction with the audience resulted in a few - almost unanimous -conclusions. Large-scale district heating networks are crucial to achieve the objectives outlined in the Paris Agreement. Meeting climate targets requires the rapid deployment of new technologies on a significant scale. One of the key bottlenecks in accelerating the energy transition is regulation. Collaboration, participation in industry-wide initiatives, and forming partnerships can help address these challenges and drive the transition towards a more sustainable energy future. As a long-term investor, PGGM can provide the necessary financial support and expertise. Ennatuurlijk and RIFT collaborated in a pilot project providing heating by the new iron fuel technology to 500 households connected to the district heating network in Helmond, The Netherlands. Together, they supplied the heating network with the new technology within three months. As Mark from RIFT mentioned: ‘Together we can make it happen.’