Finland. Lahti Energia Oy
| Date of agreement: | 15 Dec 2023 |
|---|---|
| Country: | Finland |
| Customer: | Lahti Energia Oy |
| Amount in EUR: | EUR 60 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: 19%
NEB category: Renewable energy generation
Amount disbursed: EUR 4.38 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
The loan has been provided for Finnish Lahti Energia Oy’s investment programme. The programme is related to the investments in the electricity grid, a new electric boiler for the Kymijärvi IV power plant, a biogas power plant for Hartwall and investments in wind farms.
The borrower Lahti Energia Oy is a utility company owned by the City of Lahti. It operates in production, supply and distribution of electricity and district heat, and supplies circular economy solutions for energy production. Lahti Energia produces electricity and heat in Lahti at the Kymijärvi power plants. In addition, heat production uses small plants in different parts of the distribution network.
Fulfilment of NIB's mandate
Investments in electricity grid
In Lahti Energia’s electricity network area, the use of electricity is expected to increase by up to 30% by 2032. The investments in the distribution network will increase the security of supply and expand the networks in Lahti area and reduce network maintenance costs.
Ex-ante impact indicators productivity
- Capex: EUR 50 million
- Increase in cabling: 120 kilometres
Investments in wind farms
The increasing share of wind power will reduce the company’s revenue per unit of power sales going forward.
Ex-ante impact indicators productivity
- Capex: EUR 13.7 million
Wind power is one of the most sustainable ways of producing electricity, and the project will result in avoided CO2 emissions.
The wind farm sub-project is fully eligible for NIB Environmental Bonds.
Ex-ante impact indicators environment
- Renewable energy: 137 MWh/a
- Added renewable energy production capacity of electricity: 48 MW
New electric boiler and biogas plant refurbishment
The electric boiler will add 17% to Lahti Energia’s heat production capacity, which will strengthen the security of supply in the Lahti region.
The biogas plant, built in cooperation between Lahti Energia and Hartwall, will enable the brewery’s carbon-neutral production. The biogas plant will substitute Hartwall’s fossil fuel fired steam production with a biogas boiler using sidestreams from production processes as a fuel. The plant will also produce district heating for Lahti Energia’s district heating network if necessary.
Ex-ante impact indicators productivity
- Capex: EUR 16.5 million
The electric boiler is fully eligible for NIB Environmental Bonds.
The biogas plant is fully eligible for NIB Environmental Bonds.
Sustainability summary
NIB has not identified any significant environmental or social sustainability concerns. An environmental impact assessment (EIA) has been carried out for all wind farms.
