Sweden. City of Luleå
|Date of agreement:||21 Dec 2016|
|Customer:||City of Luleå|
|Amount in SEK:||SEK 500 million|
|Amount in EUR:||EUR 52.1 million|
|NACE sector / loan type:||Collection, purification and distribution of water|
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Blue Bond project
Amount disbursed: EUR 19.5 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
Arctic Financing Facility (read more): 100%
The loan has been provided for the construction of a second bio-waste digester and bio-fuel upgrade, and a sewage pipeline, as well as financing the expansion of a drinking water plant in Luleå, Sweden.
The first of the three projects concerns the upgraded Gäddvik drinking water plant, which was commissioned in November 2015. The upgrade consisted of new freshwater pipes and an 80% increase in its water intake capacity. This enables the construction of new residential areas to meet the future demands of a growing population.
The second project is the construction of a second digester at the Uddebo WWTP and an upgrade of the facility to enable bio-fuel production. Adding the digester will reduce the number of maintenance breaks and increase flexibility. The Uddebo WWTP digester is scheduled to be completed in 2018.
The bio-fuel upgrade installed at Uddebo is unique in Sweden as it uses a new membrane filtering technique with lower emissions of methane. The bio-fuel is used to fuel the municipality’s vehicles, and surplus gas is used for heating the wastewater treatment plant. The production of bio-fuel started in February 2016.
The third project is the construction of the East Link sewage pipeline. The investment includes replacing outdated pipes and expanding both the water and wastewater network of around 3.5 kilometres. This allows for new residential areas to be connected to the systems. In addition, there will be some improvements in the urban environment in terms of mobility and green areas, contributing to enhancing quality of life and the efficiency of public services. The East Link is scheduled for completion by 2020.
Luleå is the capital of the Norrbotten region in northern Sweden and is one of the country’s fastest-growing economic areas. The City has a combination of industry, technology, trade, education and culture that attracts new businesses, such as data centres. The Port of Luleå is one of the largest in Sweden in terms of bulk shipments of ore, steel, oil, and freight, and it operates year-round.
Fulfilment of NIB's mandate
The extension of the drinking water treatment plant at Gäddviken, and the increased water intake capacity, are aimed at improving the quality and efficiency of the water supply in Luleå.
The construction of a second digester at the Uddebo WWTP will allow the handling of waste from other organic substrates. The bio-fuel upgrade uses a new and efficient technology unique in Sweden.
Constructing the East Link sewage pipeline will replace an outdated network infrastructure to increase the economic use and add the flexibility to gradually accommodate a higher number of connections from a growing region. The investments are expected to increase the quality and efficiency of public services.
The ground water recharge and ground water drinking water plant at Gäddvik close to Luleå has been in operation since 1906. The plant has been expanded several times. Water is taken from the Lule River, one of the largest rivers in Sweden, and infiltrated at the sandy area at Gäddvik.
The new investment in the sludge digester and bio- gas upgrade facility is located at the Uddebo waste water treatment plant. Today, one digester is up and running at the plant. One additional digester has been planned. The upgrade of methane from the digester into bio- fuel has already been operating for a year. The investments have all the necessary permits.
The East Link sewage upgrade is part of an upgrade of the sewage system of Luleå. No significant environmental issues have been identified.