Laying the foundation for climate-friendly heat production: Stadtwerke Dessau and Novocarbo sign long-term heat offtake agreement

Stadtwerke Dessau and Novocarbo are jointly advancing the decarbonization of municipal heat supply: the long-term heat offtake agreement paves the way for a new site in Dessau-Roßlau that will deliver renewable heat to the district heating network while producing biochar for climate protection.

Hamburg/Dessau-Roßlau.Stadtwerke Dessau (municipalities of Dessau) have signed a long-term heat offtake agreement with climate-tech company Novocarbo and its parent company Hevella Carbon. As part of this collaboration, Novocarbo plans to develop the Carbon Removal Park Dessau. Following approval by the supervisory board, the agreement was signed in the presence of Mayor Dr. Robert Reck, Stadtwerke CEO Dino Höll, and Novocarbo Managing Director Dr. Karl Reinhard Kolmsee.

The agreement covers an annual supply of up to 13.5 gigawatt hours (GWh) of heat, ensuring the economic and continuous operation of the facility over a period of 15 years from commissioning. In return, Fernwärmeversorgung GmbH Dessau will purchase the green heat generated. Commissioning is currently planned for no later than January 1, 2028. This will create a reliable, fossil-reduced heat source for the region.

“By signing this agreement, we are taking an important next step in developing our heat supply towards climate neutrality,” says Mayor Dr. Robert Reck. “The use of innovative technologies and regional resources sends a strong signal for active climate protection at the local level.”

Biochar Carbon Removal as a circular infrastructure approach

At the core of the project is the Biochar Carbon Removal (BCR) process. At the Carbon Removal Park Dessau, biogenic residues such as wood chips or fruit pits are converted via pyrolysis into biochar and renewable heat. The carbon remains stably bound in the biochar, creating the basis for long-term CO₂ storage when used in appropriate downstream applications.

The high pyrolysis temperatures of 600–700°C also generate usable process heat, which is fed into the district heating network. By utilizing organic residues, the system follows a circular model in which existing resources are repurposed rather than discarded. An approach that is becoming increasingly relevant for municipalities and industry.

“Dessau-Roßlau is a strong example of how regional partnerships can drive decarbonization – and how we can further strengthen the region through local biomass processing and energy solutions,” says Dr. Karl Kolmsee, Managing Director of Novocarbo.

Biochar: an innovative material for Federal Horticulture Show (BUGA) 2035?

In addition to heat generation, Novocarbo produces biochar with a wide range of applications. In agriculture and urban greening, it improves soil structure, as well as water and nutrient retention, while supporting biodiversity.

Against this backdrop, the planned Federal Horticulture Show (BUGA) 2035 in Dessau-Roßlau presents a unique opportunity to showcase forward-looking landscape solutions. As part of modern substrates, biochar can help create climate-resilient green spaces and soils, while enabling long-term carbon storage in urban environments – making innovative approaches visible and tangible.

Beyond soil applications, biochar also opens up new possibilities in the construction sector. As an additive in materials such as asphalt, it can partially replace fossil-based inputs and contribute to lower-emission construction materials, while also enhancing material performance.

Supporting the municipal heat transition

The planned facility represents an important building block for climate-friendly heat supply and will reliably complement the existing district heating network. At the same time, residents of Dessau-Roßlau will benefit from a secure and increasingly renewable heat supply.

“The use of unavoidable waste heat from biochar production is a tangible contribution to climate protection. It allows us to gradually replace fossil fuels with innovative heat sources and move our district heating system step by step toward climate neutrality,” says Stadtwerke CEO Dino Höll.

The partnership provides long-term planning certainty and supports the continuous expansion of low-emission heat sources in Dessau-Roßlau. It aligns with the city’s municipal heat planning as well as the transformation plan of Stadtwerke Dessau, which aims to integrate at least 30% renewable energy or unavoidable waste heat into the system by 2030. This builds on the city’s broader energy and climate strategy, which targets a significant increase in the share of renewable energy in overall heat consumption.

About Stadtwerke Dessau

Dessauer Versorgungs- und Verkehrsgesellschaft mbH – DVV – Stadtwerke is the municipal utility of Dessau-Roßlau. It provides energy, including district heating, as well as mobility, water, and telecommunications services, and is one of the region’s largest employers and contracting entities.

As part of its heat transition strategy, they are expanding climate-friendly energy sources. This includes planned innovative combined heat and power (iCHP) projects at the Zoberberg site with an expected annual heat output of around 5.2 GWh, as well as additional projects at the Wagonbau and Kochstedt sites with combined capacities of approximately 5.7 GWh per year.

www.dvv-dessau.de

About Novocarbo

Novocarbo is a climate-tech company implementing Biochar Carbon Removal at industrial scale. The company produces and trades biochar and brings it into applications for soil health, water management, and sustainable industrial materials. At the same time, Novocarbo provides renewable heat for municipalities and industry.

Over the next two years, Novocarbo plans to develop two additional sites to further expand capacity, particularly for the decarbonization of municipal infrastructure.