EBRD extends EUR 15.5m for 18-MW biomass plant in Ukraine

SeeNews) - Oct 10, 2013 - The European Bank for Reconstruction and Development (EBRD) said yesterday it would provide EUR 15.5 million (USD 21m) in financing for the construction of an 18-MW biomass plant in Ukraine.

The biomass facility, which will use wood chips as fuel, will be constructed by Biogasenergo, a division of Ukraine’s EIG Engineering in northern Ukraine. The plant in the town of Ivankiv, Kiev district, is to process about 210,000 tonnes of firewood, reject wood and waste biomass products from forest management to produce more than 120,000 MWh of power. It is to be put on stream by the middle of next year.

The funding is part of EBRD’s strategy to support the development of renewable energy projects in Ukraine.

The project marks the beginning of EIG Engineering’s large-scale investment scheme backed by EBRD, which could lead to the construction of up to five similar biomass power systems with a total capacity of 50 MW. The facilities are planned for northern Ukraine, a region that has ample wood waste supplies. Their construction will be supported by EUR 70 million in financing, some EUR 50 million of which will be provided by the EBRD’s Ukraine Sustainable Energy Lending Facility (USELF). The remaining EUR 20 million will come from Ukraine’s Clean Technology Fund (CTF).

As of August 1, the EBRD had invested more than EUR 8.55 billion in Ukraine, it noted.

(EUR 1.0 = USD 1.349)

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