Sweden. AB Fortum Värme Holding, co-owned with City of Stockholm
| Date of agreement: | 07 Sep 2016 |
|---|---|
| Country: | Sweden |
| Customer: | AB Fortum Värme Holding, co-owned with City of Stockholm |
| Amount in SEK: | SEK 600 million |
| Amount in EUR: | EUR 63.1 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy generation
Amount disbursed: EUR 62.8 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
This is a complementary loan to finance the design, construction, operation and maintenance of the biomass CHP plant in Värtan, Stockholm. The SEK 600 million loan comes in addition to a SEK 1,400 million loan signed with Fortum Värme Holding samägt med Stockholms stad, AB in June 2014.
The biofuel-fired combined heat and power plant was inaugurated in May 2016, and is an important step in developing a sustainable energy supply for Stockholm. The plan is for district heating in the city to be entirely produced from renewable or recovered energy by 2030.
Fortum Värme Holding is equally co-owned by Fortum Oyj and the City of Stockholm. It produces and distributes district heating and cooling in the Swedish capital and five surrounding municipalities.
Fulfilment of NIB's mandate
An increase in the use of biomass will diversify the energy mix and add value to biomass harvested in the member area. Broadening of the value chain in member area energy production will eventually show in reduced imports of fossil fuels.
Sustainability summary
This is a project with a potentially extensive environmental and/or social impact (category A, read more)
As the district heating in Stockholm consists of three connected plants, the new incinerator at Värtaverken will also influence the production at the other two plants. This is expected to lead to positive environmental effects in form of reduced emissions of carbon dioxide, as some fossil fuels will be replaced with biofuels.
