Sweden. Tranås Stadshus AB
|Date of agreement:||31 May 2012|
|Customer:||Tranås Stadshus AB|
|Amount in SEK:||SEK 175 million|
|Amount in EUR:||EUR 19.5 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 18.2 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 EUR 19 million loan has been provided for the financing of a new, biofuel-based boiler in the district heating power plant in Tranås, Sweden. The loan will be onlent to Tranås Stadshus’ subsidiary, Tranås Energi AB.
Tranås Energi will extend the capacity of the district heating power plant in Tranås from 86 MW to 121 MW. The new 35 MW combined heat and power boiler will burn wood chips based on forest residuals.
One of the district heating plants’ old wood fuel-fired boilers will be replaced by the new biofuel-fired boiler. The new biofuel-based boiler, with an annual capacity to burn 50,000 tonnes of biomass, will produce around 30 GWh of electric power and 120 GWh of heat annually, twice as much as the current boiler. Tranås Energi’s biopower plant will generate electricity from bark, shavings and other wood.
Tranås Stadshus AB is a wholly owned subsidiary of the Municipality of Tranås. The municipality lies in the County of Jönköping in southern Sweden, and has a population of around 18,000 people.
Fulfilment of NIB's mandate
The new biofuel-based boiler will generate heat and electric power from wood. With the demands of today’s society on the environment and the owners’ requests for high returns on their investments, there is a clear benefit to invest in a new biofuel-based boiler. Switching from oil to biofuel is an example of how a local authority can reduce its CO2 emissions.
The main environmental issues are land issues and emissions to air. Fifteen tenants have been relocated from acquired properties. The relocation has been carried out and no complaints have been raised. Best practice will in general be applied for the new combined heat and power boiler. Tranås Energi has received a permit with environmental requirements for the new boiler, covering also the existing operation. With current design, emissions of dust and NOx as well as content of pollutants in discharged condensate may exceed the new limit values, unless additional mitigation measures are installed. Since the permit was issued, Tranås Energi has confirmed that the environmental requirements will be fully complied with, although the design of the additional investments needed has not yet been finalised. It is anticipated that the project will crowd out power generated from fossil fuel and cut the use of fossil oil in the existing boilers. Thus the project will lead to reduced emissions of greenhouse gases.