Sweden. AB Fortum Värme Holding, co-owned with City of Stockholm

Date of agreement:17 Jun 2014
Customer:AB Fortum Värme Holding, co-owned with City of Stockholm
Amount in SEK:SEK 1,400 million
Amount in EUR:EUR 155.5 million
Maturity:12 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 152.6 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


The loan has been provided for constructing a new biofuel combined heat and power (CHP) plant in Värtan, Stockholm.

The project comprises the design, construction, operation and maintenance of a new biomass CHP plant, including the necessary upgrading of harbour infrastructure. The CHP plant will deliver heat to the existing district heating system in Stockholm and electricity to the public grid. The plant is scheduled for partial commissioning as from the fourth quarter of 2015.

The production capacity of the new plant will be 280 MWh of heat and 130 MW of electricity. The capacity corresponds to more than 20% of the heat consumption in the Stockholm area. The power plant allows for the use of a full range of solid biomass, but production is expected to be mainly based on wood chips.

Fortum Värme’s estimated annual heat and electricity production will increase by 20% and 50% respectively. Operational efficiency in both energy production and sourcing of fuels will also increase. This is expected to result in savings of over 20% on operating costs.

AB Fortum Värme Holding, co-owned by Fortum Oyj and the City of Stockholm, produces and distributes district heating and cooling in Stockholm and five surrounding municipalities. Fortum Värme also distributes gas to industrial customers and households. The company has around 69,000 gas customers, 10,000 district heating customers and 400 district cooling customers. At the moment, Fortum Värme is currently 90.1% owned by Fortum Oyj and 9.9% by the City of Stockholm. According to an agreement between Fortum and the City of Stockholm, both parties will each own 50% of Fortum Värme as of 1 January 2016.

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.

When the new CHP plant is operational, the fuel mix at Värteverken will be 60% biofuels and 40% coal, compared to the previous 70% coal, 28% biofuels and 2% oil. Due to the changed fuel mix, the direct emissions of fossil carbon dioxide at Värtaverken will decrease by 116,000 tonnes annually.

Press release

NIB finances Fortum Värme's biomass combined heat and power plant in Stockholm

Press release

NIB finansierar Fortum Värmes nya biobränsleeldade kraftvärmeverk i Stockholm

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