Dialogue with the urban context for new energy: the Borgo Panigale cogeneration plant When going by the roundabout between Via Prati di Caprara and Via Vittorio Sabena in the Reno di Borgo Panigale neighbourhood in Bologna, it seems like you are passing next to a gigantic colourful radiator. It has the appearance of a modern work of art, but instead it is the Hera Group’s new cogeneration plant. This plant has changed the face of the entire neighbourhood since it was inaugurated in October 2017. Its characteristic element is the elliptical structure covering the stack of the plant. It consists of 576 plates of colourful porcelain stoneware arranged on multiple overlapping rings that create a combination of colours and light with the nuances typical of the city of Bologna: brick red, ochre yellow, tuff yellow, dark brown and rust. brgopanigale.jpg Hera’s undertaking for an efficient district heating system The Cogen plant, which stands in Via Paolo Nanni Costa, is not only Hera’s jewel from the architectural viewpoint - perfectly integrated with the new urban context of the neighbourhood - but is also the Group’s pride and joy from the production viewpoint. Entirely designed and built by Heratech, the engineering essence of the Hera Group, the plant produces energy in cogeneration, meaning both electricity and hot water necessary for the district heating network. Built thanks to an investment topping Euro 17 million, the plant heats the equivalent of 8000 housing units and currently the turbines produce up to 35,000 Mwh of energy a year, almost double that of the past. District heating is already in itself a “sustainable” and eco-friendly supply because it is able to guarantee greater efficiency than the traditional household boilers. What’s more is that the plant guarantees less atmospheric emissions, greater reliability and a higher availability of energy with 90% efficiency. What does all of this mean in terms of benefits for the environment? It is like planting 25,000 new trees every year. Or stopping the flow of traffic of 8000 vehicles during the same period. Technology, efficiency, reutilisation of the land The use of advanced technology and energy efficiency are therefore the cornerstones of this work, in line with Hera’s mission for sustainable development. But that’s not all. The new Cogen district heating plant made a remarkable impact also in terms of land reutilisation. Built on the site of the thermoelectric plant in operation since the 1990s, the Cogen plant allowed the plant in Via Segantini to be shut down and today only one plant is able to cover the same requirement guaranteed by the two of the past. (is it advisable to say that?) Yes, I think so This is an enormous goal that Hera has met, which sets upgrading existing facilities one of its primary objectives. If the percentage of land reutilisation was 77% in the Group Sustainability Report closed in 2019, the development of the network works and of plants presently in progress and included in the 2020-2023 Industrial Plan will allow 73% of reutilised land to be guaranteed. (data updated to 2019). The undertaking of the Hera Group for energy efficiency The Borgo Panigale Cogen plant is part of the 343 interventions forming the plans for improvement of Hera, Inrete, AcegasApsAmga and Marche Multiservizi at year-end 2019, and that will allow consumption to be cut by 13,740 Tep (-5.9% energy consumption compared to 2013), passing the target set for 2020 by -5%. (data updated to 2019). The Bologna Cogen plant in figures: 8,000 housing units served 35,000 Mwh energy produced each year Euro 17 million invested District Heating Our plants no null null

Measure to innovate. Hera Luce's tool is ahead of its time Waste can spring back to a new life almost indefinitely. This principle is the foundation of the circular economy. It is based on the five Rs – reduce, reuse, recycle, recover, regenerate – and aims to minimize waste and the use of resources. And this is also the foundation of our front line fight to manage municipal waste, which today, more than ever before, has become a precious resource, thanks to a circular approach. MG_0694.jpg Our efforts have gone well beyond waste management. Since 2017, we have been trying to apply the same circularity to public lighting systems. But to innovate, you have to measure. That's why Hera Luce developed a measurement system to analyse materials used in public lighting throughout their entire life cycle – from origin to final destination – both in terms of material flows and in economic terms (costs/revenues). In 2017, this approach to measuring circularity had already been brought into line with the guidelines of the Italian Ministry of the Environment and it is now consistent with Circulytics, the new digital tool which accurately measures circularity, developed by the Ellen MacArthur Foundation in 2019, and which we were involved in as testers. Our evaluation system also anticipated the requirements of the Italian Ministry of the Environment on the minimum environmental criteria (MEC) for public lighting services. In fact, since 2016, our calls for tenders require MEC compliance and, since 2018, also require the material balance. Our strong focus on circularity and environmental sustainability, the awareness raising process launched with our suppliers, and being forerunners of such a measuring tool have been rewarding choices. Hera Luce has thus been awarded the contracts for the municipalities of Ferrara, Lugo, Tavullia, and Cervia, and has qualified as a partner to the Municipal Administrations as able to promote the issues of sustainable, intelligent and solidarity-based development, favouring the achievement of the objectives of the UN's 2030 Agenda. In the coming years, we will extend the use of the Hera Luce circularity evaluation tool to water connection sites. Hera Luce's efforts to improve the efficiency of public lighting contribute to achieving target 7.3 of the UN's 2030 Agenda. Hera Luce no http://www.heraluce.it/

Waste-to-energy plants: a resource for the circular economy A waste-to-energy plant, in fact, is a plant in which the heat from the combustion of waste is recovered to generate steam, which is then used to produce electricity or for district heating. link to the district heating page termovalorizzatori.jpg Our nine waste-to-energy plants cover a catchment area of over 3 million inhabitants in the provinces of Ferrara, Modena, Bologna, Forlì-Cesena, Rimini, Isernia, Padua, and Trieste and "enhance" the heat produced for the benefit of the local area. How? By generating both electricity, fed into the Italian distribution network, and heat, sent to homes or users in the surrounding area, through a special distribution network. HOW DOES A WASTE-TO-ENERGY PLANT WORK? Watch the video for a quick and simple explanation of the basic operation of a waste-to-energy plant. ARE WASTE-TO-ENERGY PLANTS DANGEROUS? No. These plants are safe, compliant with the regulations, and contribute less than 1% of total emission sources for dioxins, PM10, NOx, and other major air pollutants (ISPRA data). The only waste consists of ash (about 20% by weight of the treated waste) and particulate (about 3% by weight of the treated waste). Ash is generally used for recovery and production of secondary raw materials for the cement industry, while the particulate is stabilised to reduce any potential pollutants and make it suitable for disposal in an authorised plant. Do you want to know more about our waste-to-energy plant emissions? Visit the section on our website. The waste-to-energy plants are subject to constant monitoring and checks conducted by both Herambiente itself and competent agencies. Checks are carried out with the utmost transparency and anyone can verify the results: the main emission parameters are published and updated every half hour on the website www.herambiente.it. Transparency, in fact, has always been a value for Herambiente, since it manages waste and material and energy recovery activities without compromising the quality of the surrounding environment, with the utmost respect for the territory and adopting solutions with the lowest environmental impact. To dispose of the non-recoverable part of the waste and to make good use of the energy obtained to produce electricity and heat. This is the task of a waste-to-energy plant. no

Ferrara, the city of "green" heat ferrara citta verde.jpg A treasure is hiding under the soil of Ferrara. Not a chest full of gold coins nor a vault containing hidden works of art. It is a gift that nature gave this city. About two thousand metres under the Casaglia hamlet, there is a geothermal deposit from which water is drawn at around 100 °C. It is one of the world' s largest geothermal sources and a completely clean and renewable source of energy. This natural treasure makes Ferrara's district heating one of the most advanced geothermal plants in Europe. This reservoir, in fact, supplies 43% of the thermal energy to a 160 km long network that serves about 25 thousand housing units. Thanks to geothermal energy, combined with the recovery of the heat generated by the Via Diana waste-to-energy plant, 87% of the heat we distribute in Ferrara is "green". This result is confirmed by the recent Carbon Footprint certification validated by SGS, according to which Hera district heating helps the city of Ferrara to save 22 thousand tonnes of CO2 emissions per year. The Hera Group, partnered with Enel Green Power in a specially created temporary grouping of companies, has been managing this treasure trove of clean energy since the end of 2019. We began this process in 2017, when we obtained the concession to exploit the geothermal reservoir in the Ferrara subsoil, and we recently completed it by acquiring the Casaglia geothermal power plant. Thanks to this operation, we expect to increase the Ferrara district heating system's use of geothermal energy by a further 23% by 2023, compared to the 2016-2019 average. In recent years, our strategy has had a single objective: to boost district heating in the city and create an advantage in both the residential and production markets. For example, under an agreement with the Municipality of Ferrara, customers who convert their systems, installing a district heating controller, already receive an 80% discount on the installation. District heatign no

Hera and General Electric together for energy recovery An experimental and innovative project with an ambitious goal: energy recovery and lower consumption of fossil fuels by decompressing the methane gas distributed in urban networks. general electric (1).jpg The exclusive agreement between Hera Group and General Electric specifically involves installing a turbo expander at the R&M stations (gas delivery points) of the Ducati factory in Bologna. It is a medium-small turbo expander (330 kW electric), which can be installed in medium-sized R&M stations, that in combination with a heat pump that uses CO2 as a thermal carrier fluid, recovers part of the electric energy to preheat the gas used in the process. In 2019, we completed all the production start-up activities and started the provisional running phase, in order to carry out all the performance and endurance tests. It is scheduled to start operating at full capacity in the second half of 2020. Once the testing is completed, if the expected performance is confirmed, this technology can be installed in other methane gas decompression stations of the Hera Group. The project, moreover, contributes to achieving target 7.3 of the UN’s 2030 Agenda.