NIB Nordic Investment Bank

Loan

Sweden. Njudung Energi Sävsjö AB

Date of loan: 30 Jan 2017
Country: Sweden
Customer: Njudung Energi Sävsjö AB
Amount in SEK: SEK 40 million
Amount in EUR: EUR 4.2 million
Maturity: 20 years
NACE sector / loan type: Electricity, gas, steam and hot water supply

Sectors

Energy and environment

Environmental effect

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

Share of financing: 100%

Amount disbursed: EUR 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 for upgrades to the district heating system in Sävsjö, southern Sweden.

The upgrades consist of a new biofuel-fired boiler with a capacity of up to 12 MWth and reinforcement of existing connections, which will allow new clients to be connected to the network.

The main supplier for the boiler construction is Axis Technologies, a mid-cap from Lithuania.

The project is eligible for financing from NIB Environmental Bond proceeds.

Njudung Energi Sävsjö AB (formerly Sävsjö Energi AB) is a local energy company providing electricity to 3,500 customers, district heating in Sävsjö and Rörvik, and gas distribution in Sävsjö. It is jointly owned by Sävsjö Municipality and Njudung Energi Vetlanda AB.

Fulfilment of NIB's mandate

The new boiler has capacity to increase the annual heat production by 8%.  Locally sourced wood chips will be used as fuel. The efficiency of fuel utilisation will increase by 15–20% due to implementation of modern boiler technology, and the costs for fuels will be cut by approximately 30%. The boiler is scheduled for test runs in January 2017.

Since fossil peak load fuels like liquid petroleum gas and oil are replaced by biofuel, greenhouse gas emissions are reduced. Moreover, dust emissions are predicted to decrease.

Sustainability summary

Adequate air emission reduction measures will be applied.

Wastewater from the plant is to be treated in an internal treatment facility prior to being discharged to a storm water dam and the recipient, the river Hägnaån.

Ashes will be handled together in a closed system in order to prevent diffuse emissions. The mixed ash will be utilised for covering a landfill site.

In total, the new plant will replace six small boilers, which will likely be sold once the new plant is in operation.

Back to agreed loans

  • AR2016

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