8 May 2013
NIB finances biomass power plant in Sweden
NIB has signed a 20-year maturity loan of EUR 20 million with Swedish company Vimmerby Energi & Miljö AB to finance a new bio fuelled combined heat and power plant at Tallholmen in the city of Vimmerby, Sweden.
The start-up of the combined heat and power plant (CHP) is scheduled for the end of 2014. The plant will have a thermal output of 26 MW and an electrical output of 7.5 MW. It will use bark and wood chips based on local forest residues as fuel.
The new CHP plant is designed to meet increasing demand of district heating from both households and industry in Vimmerby. The company’s existing biofuel-fired boiler is unable to meet current demand and needs to be supplemented with fossil fuel during peak periods.
The investment is expected to increase Vimmerby Energi & Miljö’s capacity by 50%, contributing to an annual increase of heat- and electricity production of 90 GWh and 20-25 GWh, respectively.
The Bank’s loan is 100% financed by NIB Environmental Bonds.
“The new and more efficient biofuel combined heat and power plant will benefit the inhabitants and industry in Vimmerby with a steady supply of district heating at reduced greenhouse gas emissions,” says Henrik Normann, NIB President and CEO.
Vimmerby Energi & Miljö AB supplies local customers with renewable electricity, heat and process steam. Its operations are primarily located in the municipalities of Vimmerby and Hultsfred. The company is wholly owned by the municipality of Vimmerby.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact:
Mr Yngve Söderlund, Senior Manager Lending, at +358 10 618 0239,
Mr Arild Moen, Senior Communications Officer, at +358 10 618 0496,