The EU faces a big challenge in achieving the Europe2020 goals (both increase in energy efficiency by 20 %, but also the decrease of CO₂-emissions. The recently created Energy Union and the Intergovernmental Panel on Climate Change (IPCC) have already stressed the importance of urgency when working with energy efficiency efforts (as described in the Paris Protocol). Not only is the EU the world´s largest importer of energy (400 billion EUR which amounts to approximately 53 % of the entire need), but the internal market is also unintegrated at many levels (certain regions being isolated).Even though we face big future challenges, there are several potential fields of improvement when working with the purposed pillars of the Energy Union and the Europe2020 goals. One of these will be the future asset management of energy companies and an interregional cooperation to increase the integration of the European Energy grid. By increasing awareness among Energy producers on how to more efficiently use their resources/assets, not only will the EU be able to create a powerful tool for the decrease of primary fuel usage (both for heating and electricity production), but they will also be more agile in their adaption of a change in market needs (more energy efficient houses, decentralization of production into smaller units and third party access).The South Baltic Region has an opportunity to become the leader in this work and the international cooperation will enable the dialogue of an integrated energy supply system which has proven to be very essential when working with energy security and diversification of fuel sources to reduce the risks and price fluctuations on the energy market in the EU. Even though new technology is essential for this process, working with efficient use of assets and infrastructure will be at least as decisive when allocating existing capital for future investments and new technologies. District Heating (DH) Expected Results: In order to solve the challenge described above, one of the most needed processes will be Smart Asset Management (SAM). This will create both environmental benefits for the South Baltic region, and also more affordable energy products for the end customers by using our existing assets and resources more efficiently.When defining assets, it is important to know that it includes infrastructure, production units, but also capital and human resources and the correct usage of all organizational tools at your disposal.The purpose of the project is to develop methods, processes and knowledge for SAM. This iterative development will be done in partnership by a group of energy companies, supported by knowledge providers (universities, associations and consultants).Knowledge will also be brought in from best-practise industries.The objective is to develop and introduce SAM as a work process for the partners. The result will be better operating energy companies that establish long term relations with relevant stakeholders. Example of project segments:A. Innovation Platform – cooperation with universities, DH companies and suppliers. Innovation in new technologies but also business/management models and predictive maintenance.B. Development of methods to make public owned organisations more fit/focused on Smart Asset Management. Adaption of LEAN to specific circumstances is one example.C. Benchmarking – Benchmarking and interregional cross-border knowledge exchange on existing best practices.D.Human Resource Development. How to create incentives and certify that new knowledge is being acquired at a personal level among the employees and how to attract new well educated personnel. By engaging in these activities, the energy companies will increase their potential in new technology uptake (by being able to allocate more capital for relevant investments by reducing current costs) and also decrease in fuel consumption which is in line with the specific 2.2 objective.