NIB Nordic Investment Bank

Loan

Sweden. Tekniska verken i Linköping AB

Date of loan: 16 Jun 2014
Country: Sweden
Customer: Tekniska verken i Linköping AB
Amount in SEK: SEK 450 million
Amount in EUR: EUR 49.5 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply

Sectors

Energy and environment

Financing from NIB Environmental Bond proceeds

Share of financing: 100%

Amount disbursed: EUR 48 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 the construction of a waste- and biomass-fuelled 80 MW combined heat and power plant at the Gärstadverket facility in Linköping in central Sweden. The plant will be capable of producing 500 GWh of heat (equivalent to the annual consumption of heat for 25,000 homes) and 130 GWh of electricity per year.

The new CHP plant is scheduled to begin operating in March 2016. The new boiler will be able to cope with a flexible fuel mix, with municipal waste as the principal source. The waste- and biomass-based technology will help significantly reduce the use of coal and oil. The investment is estimated to amount to SEK 1 billion (EUR 111 million).

Tekniska verken i Linköping is a multi-utility company operating in district heating, electricity generation, trading and distribution, water distribution, wastewater treatment, broadband internet, biogas, as well as other infrastructure services and related businesses. The company is wholly owned by the Linköpings Stadshus holding company, which in turn is held by the municipality of Linköping.

Fulfilment of NIB's mandate

Competitiveness: The new boiler will increase the use of waste fuel, diversify the energy mix and contribute to improved system efficiency by recovering resources that would otherwise be wasted. Waste incineration is considered to be the most cost-effective method of supplying heat and electricity in the Swedish district heating systems, even compared to natural gas and biofuel. Going forward, the demand for energy in Linköping is also expected to rise given the growing number of employment opportunities, since several large companies are expanding their activities. Tekniska verken is also actively participating in a number of research projects at Linköping University and is an important partner at the Biogas Research Centre.

Environment: Using locally generated household waste as fuel is one of the most environmentally beneficial ways of generating heat and electricity. The overall efficiency of the Linköping plant is high due to the use of techniques generating flue gases with very low temperatures. Waste can be stored during periods of low demand for use when demand is higher. The project will lead to decreased emissions of greenhouse gases—approximately 97,000 tonnes of CO2 annually—due to decreased use of oil (-76%) and coal (-72%). Less than 10% of the waste will be imported from England or Ireland—an alternative that will also contribute to decreased emissions of carbon dioxide after factoring in transport emissions.

Sustainability summary

Approximately 180,000 tonnes of municipal solid waste will be utilised as fuel in the plant. The main environmental issues are emissions into the air—particulate matter, NOx and dioxins—as well as thermal efficiency, waste handling and the generation of hazardous waste. The approved EIA requires techniques defined as BAT to be used. Filter ash, which is potentially harmful due to the content of heavy metals, will be sent to Norway for safe disposal. Local negative impacts in form of smell, increased dust and noise are considered in an appropriate manner and increased transport is not expected to overload existing roads.

Back to agreed loans

  • AR2016

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