Canary Islands invests in solar heating from Absolicon

2022-03-11

Despite the great conditions for solar energy in the Canary Islands, 65% of its energy comes from fuel oil and diesel. The research institute ITC wants to change this and has bought a solar steam facility from Absolicon. In addition, the region contributes the equivalent of SEK 45 million.

The Canary Islands are famous tourist destinations, but there are also industries such as dairies, breweries, and laundries. Of the energy, 65% is heating and 35% is electricity. Half of the heat comes from burning fuel oil and the rest is from diesel oil and other fuels.

The war in Ukraine has pushed oil prices above US$100 and for many of the industries, energy costs have doubled.

– A combination of businesses wanting to achieve the Paris Agreement’s target of 1.5 degrees and the shockingly high oil prices means that interest in solar thermal is very high now, says Carlo Semeraro, sales manager at Absolicon.

The Canary Islands Research Institute ITC has calculated that the industry can easily install 100,000 m2 of solar collectors and replace 10,000 tonnes of fuels, and they have therefore started a solar heating project. An important part is to build a demo site where industries can see how easy it is to produce steam from the sun – with Absolicon.

In November 2021 Absolicon won a procurement with ITC to install a concentrating solar collector field that produces steam. The facility will be used for training the islands’ industries and as a model to show how the transition from oil to solar heating can work. The solar collectors are already on location and the installation will take place during the spring.

Parallel to ITC’s investment, the Canary Islands’ regional management will on the 23 March launch a new support initiative towards industries that replace oil in favour of, among other things, solar heat. This support scheme provides up to 45% of the investment cost and the region is allocating 4.5 million Euros (approximately SEK 45 million) towards the investment.

This investment is part of Spain’s multi-billion program to install renewable heat in its industry, which is now being rolled out in all regions of Spain, Decree 1124/2021. More and more people are realizing its unsustainable to be dependent on oil, gas and coal. It involves both a political risk and high costs. Solar heating, on the other hand, is safe and free – the only costs are interest rates and amortization repayments.