EIB extends EUR-260m loan for biomass CHP plant in Stockholm
Jun 18, 2014 - The European Investment Bank (EIB) today said it will lend EUR 260 million (USD 353m) to back the construction of a biomass plant in Stockholm capable of producing 280 MW of heat and 130 MW of power.
Energy company Fortum Vaerme, an affiliate of Finnish utility Fortum Oyj (HEL:FUM1V), will receive the financing for the design, construction and operation of the combined heat and power (CHP) facility. The EBI loan will also support the necessary biomass handling facilities and the upgrade of port facilities needed for the plant.
“We are also very pleased with this EIB loan, which forms a sound basis for our efforts to meet our shareholders’ desire to ensure standalone financing of Fortum Vaerme before 1 January 2016,” said the company’s chief executive Anders Egelrud.
Fortum Vaerme intends to conclude construction of the biomass CHP plant by 2016. It is betting on an advanced boiler technique which will make it possible to use various solid biofuels and cut fossil fuel consumption significantly.
Once up and running, the plant will be supplying heat to the existing district heating system in Sweden’s capital. The produced electricity will go to the public grid.