NIB finances district heating transformation in Western Finland

NIB and the utilities company Seinäjoen Voima Oy (SEVO) have signed a twelve-year loan agreement for renewable energy production and storage in Seinäjoki, Finland.

The EUR 20 million loan finances SEVO’s investments in a new biofuelled district heating plant, a district heating battery, and an electric heat boiler to increase the security of supply and optimise the company’s operations. Together, these projects are building a flexible and emission-free district heating system. 

With these new investments, the use of peat will also decrease. Shifting from peat to biomass will significantly reduce emissions into the air. Assuming the annual production of 150 GWh, the estimates suggest a reduction of 30,000 tonnes of CO₂eq per year because of the new plant. Meanwhile, the new district heating battery and the electric boiler will also reduce generation through fossil fuel burning, further decreasing the emissions by an estimated 45,000 tonnes of CO₂ annually.

The combination of these investments will diversify heat sources and increase flexibility to take advantage of fuel and electricity prices. By phasing out fossil fuels and increasing the share of renewables in its energy mix, SEVO will be less vulnerable to price volatility and allow for more economical production.

Seinäjoki Voima Oy produces heat and electricity for Seinäjoki, a city of around 65,000 inhabitants and businesses in Western Finland. The company is fully owned and operated by EPV Energia Oy.

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
Sebastian Påwals, Director, Utilities Coordinator, at +358 10 618 0527, Sebastian.Påwals@nib.int 
Vytautas Brazaitis, Communications Officer, at +358 10 618 0235, Vytautas.Brazaitis@nib.int