Finland. Fortum Oyj
|Date of agreement:||23 Apr 2020|
|Amount in EUR:||EUR 70 million|
|NACE sector / loan type:||Production and distribution of electricity|
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy generation
Amount disbursed: EUR 70 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
NIB has provided the loan for Fortum Oyj to finance the refurbishment of two hydropower plants in Sweden and one in Finland to improve safety, repair and renew the dam and spillway structures and extend the life span of the old hydro power plants.
The investment includes the refurbishment projects of hydropower plants in Imatra, Finland, and Långströmmen in Jämtland, Sweden. Both projects were finalised in 2019.
Fortum started to refurbish the hydropower plant Trängslet in Dalarna in 2019. It expects to complete the work in 2025. Fortum also plans to start refurbishing an additional hydropower plant in Sweden in 2020.
All hydropower plants were built between 1920 and 1960. The refurbishment includes the repair and reinforcements of dam structures and gates, expansion of spillway capacity, addition of new bride decks, as well as the renewal of electrical systems.
Fortum is a leading energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. The company employs some 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India. In 2019, 59% of Fortum’s electricity generation was CO2 free. Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com
Fulfilment of NIB's mandate
The investments will upgrade the reservoirs of the power stations to improve the operational security of the units. The investment does not bring any new capacity to the network. However, the investment contributes to the security of supply and maintains efficient operation of the electricity market in NIB’s member countries.
The investment is for refurbishing existing hydropower plants. The project will not increase the power generation volumes, but will increase safety and improve emergency preparedness.
The dam structures originates from the 1920’s and the 1960’s and needs to be refurbished due to deteriorations of the old concrete constructions. The project will extend the lifetime of the dam structures with approximately 50 years.
The investment will also increase the draw-down capacity at Trängslet and Långströmmen, which will improve emergency preparedness. The investment will not have any significant negative environmental impacts.