Poland's biggest lender PKO Bank Polski (WSE:PKO) said on Wednesday it has agreed to lend EUR 54 million (USD 57.8m) to a unit of Polish ferroalloy producer Re Alloys for the construction of a 35-MW wind farm.
The bank will also lend the company, called Wind Farm Lada, PLN 32.3 million (USD 7.26m/EUR 6.78m) for working capital.
The wind farm will be built in Dzwola, the eastern province of Lublin, with commissioning planned for the second half of 2024. The electricity generated by the facility will be sold under a power purchase agreement in order to optimise the costs of Re Alloys' energy-intensive operations in the southern province of Silesia.
The investment is in line with Re Alloys' strategy to fully meet the company's energy needs from renewable energy sources. The project will also create jobs in the post-mining commune which is at risk of going into decline.
In December, Wind Farm Lada signed a PLN-44-million deal with local renewable energy contractor Onde for the construction of the facility. The turbines will be supplied and installed by Sweden's Nordex, Re Alloys said in November.
The involvement of PKO Bank Polski is part of the bank's policy to finance the development of renewable energy. It wants to take active part in counteracting climate change and contributing to the transformation of the Polish energy system. Over the last two years, the bank has allocated over PLN 2.1 billion for financing green projects.
(PLN 10 = USD 2.25/EUR 2.10)
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