Finland. Lahti Energia Oy
|Date of agreement:||01 Dec 2016|
|Customer:||Lahti Energia Oy|
|Amount in EUR:||EUR 75 million|
|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 75 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 the construction of a 193 MW wood biomass-fired boiler, Kymijärvi III. The new power plant will replace the existing 350 MW coal fired boiler, Kymijärvi I, which will come to the end of its technical lifetime in 2020.
The power plant will produce heat for the district heating networks of the city of Lahti when it starts to operate in 2020. The plant will use peat and coal as reserve fuels if wood biomass becomes unavailable.
The design and environmental permit application of the project include an option to install a turbine for power generation in the future, depending on the development of the price of electricity.
The construction of Kymijärvi III is part of the city’s strategy to halve CO2 emissions by the year 2025 in relation to the 1990 level.
The estimated cost of the heat production project is EUR 151 million.
Founded in 1907, Lahti Energia generates and distributes electricity, as well as district heating, steam and natural gas.
Fulfilment of NIB's mandate
The annual production of Kymijärvi III will cover approximately 40% of the heat consumption in the Lahti region. An increase in the use of biomass will diversify the energy mix and add value to biomass harvested in NIB’s member countries.
The new biomass plant is designed in accordance with the best available techniques. The design includes efficient flue gas treatment, heat recovery from the flue gas and treatment of condensate from the heat recovery. The heat recovery is estimated to improve the overall efficiency by 10–15%.
The effluent from the condensate treatment replaces the need for feedwater. The project is estimated to decrease CO2 emissions by approximately 505,000 tonnes per year.
Emissions of sulphur dioxide and nitrogen oxides are assessed to decrease by approximately 600 tonnes per year.
Kymijärvi III will be equipped with efficient flue gas treatment to comply with the EU’s Industrial Emissions Directive.
Emissions of sulphur dioxide and nitrogen oxides are assessed to decrease by 50%, but particulate matter emissions are expected to increase slightly. The concentrations in the surroundings are calculated to be significantly below the reference and threshold values of the ambient air quality standard.
The noise level in nearby residential buildings due to the energy generation area is assessed to be below the reference values of the Finnish national guidelines.
The new plant will be equipped with heat recovery from flue gas, and the condensate from the heat recovery system will be treated to remove sulphates. Therefore, the heat load and the average cooling water discharge into the recipient Lake Vesijärvi is assessed to decrease, and the project is not expected to increase the sulphate concentration in the lake.
The amount of waste, mainly fly ash and bottom ash, is estimated to be approximately 27,000 tonnes per year, and it will be recycled, when possible.