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This paper describes possibilities to utilize sea water for district heating and cooling purposes in Tallinn costal area. The sea water temperature profiles and suitability of heating and cooling generation are studied for continental climatic conditions. The district network study bases on 21 buildings located near to the Gulf of Finland. Industrial reversible heat pump technology is selected to cover heating and cooling loads for the new buildings. Combination of existing district heating anddoi:10.4236/sgre.2012.33034 fatcat:nf62ydgxjbha3lfvhyx5ngylyy