19 Jun 2014
NIB finances Fortum Värme's biomass combined heat and power plant in Stockholm
Visualisation: Fortum, Urban Design+Gottlieb Paludan
NIB has signed a 12-year maturity loan of SEK 1.4 billion with AB Fortum Värme Holding to finance a new biofuel combined heat and power plant in Stockholm, Sweden.
The commissioning of the combined heat and power plant (CHP) is scheduled for 2016. The production capacity of the new plant will be 130 MW of electricity and 280 MW of heat. The plant will mainly use wood chips as fuel, but can use the full range of solid biomass.
The new CHP plant will replace some of the company’s fossil fuel-based heat production. Due to the changed fuel mix, the new biofuel-based plant has both direct and indirect environmental benefits, as the CO2 emissions will decrease.
“The increased use of biomass in the Nordic–Baltic region will diversify the energy mix and lead to lower imports of fossil fuels,” says Henrik Normann, President & CEO of NIB.
Anders Egelrud, CEO Fortum Värme, says:
“We are contributing to a sustainable city by building the future energy system for Stockholm. Our new CHP is beneficial for the whole of Europe as the renewable electricity produced will reduce electricity production based on fossil fuels in continental Europe. When the plant is in operation, 90% of our heat and electricity production will be based on renewable and recovered energy. By 2030 at the latest, this ratio is expected to be 100%. We are also very pleased with this NIB loan, which forms a sound basis for our efforts to meet our shareholders’ desire to ensure standalone financing of Fortum Värme before 1 January 2016”.
AB Fortum Värme Holding samägt med Stockholms stad (publ) (Fortum Värme) is the leading provider of district heating, cooling and gas in the greater Stockholm area. The company has played a key role in the establishment of Stockholm as one of the cleanest capitals in the world. Between 2010 and 2015 the company will invest 7 bn SEK in combined heat and power production. The company has 9500 district heating and district cooling customers.
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, Head of Energy and Environment Group, Origination, NIB, at +358 10 618 0527,
Niina Rantti, Communications Officer, NIB, at +358 10 618 0265,
Kerstin Levin, Chief Financial Officer (CFO), Fortum Värme, at :+46 703 445265,