Fortum craves Estonian National Museum heating deal

Photo: Kristjan Teedema

State Real Estate Ltd (RKAS) wants Fortum’s Tartu boiler plant awarded with Estonian National Museum (ERM) new building’s heating/cooling solution. Museum chief Tõnis Lukas detests such development, favouring the ground-sourced heating prescribed by design.

«RKAS has proposed to alter the design on basis of Tartu central boiler plant’s analysis,» said Mr Lukas yesterday. «I am responding to it, right now. There is no conflict regarding the building; rather, we have differences. RKAS wants a substantial changes, that we should give up ground-sourced heating. Right now I am presenting the arguments why the museum does not consider such a change possible.»

According to the museum head, the building is designed with geothermal heating. «Should we launch a procurement, we would risk losing time with the construction process. As a museum, we want to avoid administrative costs blown too big; therefore, we need a version which will not keep raising costs every year,» he continued.

Fortum hard to beat

Mr Lukas admits that, with distant heating, investments would be lower. «From the builder’s point of view, investments volume is vital; and RKAS does want the central boiler plant to also invest, bringing down the museum building costs,» said he. «What matters to us is the size of future invoices; with central heating we would have no guarantee against the bills starting to swell in the future.»

Mr Lukas believes ground-sourced heating to be the best for the museum, as well as solar energy. To produce the latter, the museum has plenty of roof and wall space for solar panels. He underlines that the museum will be using green electricity.

Even though not explicitly worded by the museum chief, it is obvious that he, as an historian, is disturbed by the entrepreneurs’ plan to make the ERM building pull a big real estate business cart, helped by the state construction company.

«The refrigerating station planned in connection to the museum might sell cold to a wider circle of clients, not to museum only,» said Mr Lukas, hinting at a planned ice arena.

To be precise, it must be underlined that RKAS would launch a public procurement to find the right heating and cooling company.

Fortum Eesti CEO Margo Külaots admitted that it would be next to impossible to compete with them at the planned distant heating contest. According to him, Fortum has performed extensive calculations and is confident in being able to offer ERM a better solution that ground-sourced heating.

«We are highly interested in ERM; this is a large object, but the [surrounding] Raadi district is about to be developed, we are interested in the entire district,» said Mr Külaots. «The Raadi plans are very impressive. The crisis halted many things, but the plan is awesome: ice arena, schools, kindergartens, residential buildings.»

He stresses that with distant heating, the initial investment would be smaller for the museum.

The distant heating utility line being too distant from Raadi, an expensive pipe is to be laid from the central boiler plant to ERM. Mr Külaots says ERM will not have to pay for the entire pipe, only for a section of it – as Fortum expects other objects to be erected in the area in near future, consuming both heating and cooling energy.

A rarity for Estonia, in other countries boiler plants do lucrative side business offering cooling services in the summer.

«Fortum possesses excellent knowhow with distant cooling. ERM would be among the buildings where we could offer advanced solutions, not only selling heat but offering the entire internal climate package, both heating and cooling,» said Mr Külaots.

ERM – a town centre

According to RKAS press secretary Madis Idnurm, ground-sourced heating was the cheapest in 2009 when the ERM building design was drawn.

«Times have changed and new options have arisen; now, four years later, we are again analysing the various solutions. As an alternative, we are also viewing distant heating and cooling solutions based on combined cycle power stations, most favoured in the European Union,» said he.

Mr Idnurm confirmed that RKAS would organise heating and cooling procurement for the museum building.

«Pursuant to Tartu County and city plans, the new ERM building will become the centre of a new town; there will be big apartment blocks, a spa, hotels, an ice arena, meaning that Fortum must build pipelines anyway, and it would be profitable for the company to have such a big client midway,» summarises Mr Lukas.