Abstract The Danish city Frederikshavn is aiming at becoming a 100% renewable energy city. The city has a number of energy resources including a potential for off-shore wind power, waste and low-temperature geothermal energy usable as heat source for heat pumps producing district heating. In this article, a technical scenario is described and developed for the transition of Frederikshavn’s energy supply from being predominantly fossil fuelled to being fuelled by locally available renewable energy sources. The scenario includes all aspects of energy demand in Frederikshavn i.e. electricity demand, heat demand, industrial demand as well as the energy demand for transportation. The locally available energy resources are deliberated and an energy system is designed and analysed with an energy systems analysis model on an aggregate annual level as well as on an hourly basis. Particular attention is given to the use of geothermal energy in the area. It is shown, that the use of geothermal energy in combination with an absorption heat pump shows promise in a situation where natural gas supply to conventional cogeneration of heat and power (CHP) plants decreases radically.