Sweden. Vimmerby Energi & Miljö
| Date of agreement: | 13 May 2013 |
|---|---|
| Country: | Sweden |
| Customer: | Vimmerby Energi & Miljö |
| Amount in SEK: | SEK 168 million |
| Amount in EUR: | EUR 19.6 million |
| Maturity: | 20 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy generation
Amount disbursed: EUR 19.4 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 to finance the construction of a biomass-fired power plant for combined heat and power production at Tallholmen in the city of Vimmerby, Sweden.
The new combined heat and power (CHP) plant is designed to meet increasing demand for district heating from both households and industry in Vimmerby. The existing biofuel-fired boiler is unable to meet the current demand and has to be supplemented with fossil fuel. The new investment will raise Vimmerby Energi & Miljö AB’s capacity by approximately 50%, or 26 MW, contributing to a possible annual increase of heat and electricity production by 90 GWh and 20–25 GWh, respectively. The new CHP plant is estimated to be in operation in 2014. It will use local forest residues such as bark and wood chips as fuel. The existing biofuel boiler will be retained for use at peak load.
Vimmerby Energi & Miljö AB supplies local customers with renewable electricity and heat. Operations are primarily located in the municipalities of Vimmerby and Hultsfred. The company is wholly owned by the municipality of Vimmerby.
The loan is 100% financed by NIB’s Environmental Bonds lending facility.
Fulfilment of NIB's mandate
The project contributes to a diversification of the energy mix and will raise the competitive pressure in using bioenergy. Although the supply of heat and electricity will increase, the impact on prices is nonetheless likely to be marginal given the small size of the plant. However, the contribution is considered important in securing the energy supply in the future.
The new plant is also highly likely to result in energy efficiency improvements since the system will generate two forms of useful energy from wood chips. The project will directly benefit the industry and inhabitants in Vimmerby.
Sustainability summary
Electricity based on renewable fuel in a CHP plant is a sustainable way of providing power that also reduces greenhouse gas emissions. The project will make use of best practice for the boiler and auxiliary equipment.
