Image: Stockholm Exergi
17 Oct 2023
NIB finances green energy investments in the Stockholm region
NIB and Stockholm Exergi Holding AB (Publ) have signed a 10-year SEK 1,300 million loan agreement to upgrade Stockholm’s district heating network, modernise the KVV1 combined heat and power plant at Värtaverket, and fund the Bio Energy Carbon Capture and Storage project’s research and development (R&D) costs.
The loan co-finances Stockholm Exergi’s investments in critical energy infrastructure that will secure energy supply resilience, responding to the surging energy demands driven by the growth, urbanisation and electrification of the City of Stockholm.
The financing supports the modernisation of the KVV1 combined heat and power plant at Värtaverket. The upgrade of the plant will enhance its efficiency and reliability, extending the plant’s lifespan by around 25 years.
The financing will also contribute to the investment programme in Stockholm’s district heating network between 2023 and 2026.
In addition, Stockholm Exergi will allocate R&D costs in 2023 for the company’s Bio Energy Carbon Capture and Storage (BECCS) project. Bio energy with carbon capture and storage is a technique for permanently removing biogenic CO2 from the atmosphere. This innovation advances carbon capture, having the potential to remove large amounts of CO2 equivalent, opening avenues for negative emissions sales. Stockholm Exergi’s goal is to build Europe’s first large-scale BECCS facility for negative emissions.
“Together, NIB and Stockholm Exergi are not only modernising critical energy infrastructure but shaping a more sustainable and resilient energy system for the Stockholm region. These investments underscore our joint dedication to accelerating the green transition and effectively reducing carbon emissions through innovative solutions,” says André Küüsvek, NIB President and CEO.
“We look very positively at extending our cooperation with the Nordic Investment Bank (NIB), by receiving a new loan of SEK 1.3 billion. The loan will be used in our green transition, and it facilitates a continuously high level of investments for Stockholm Exergi to improve our results related to our sustainability goals. The commercial terms that NIB offers are very attractive, and we value the quick and efficient way in which NIB works with these issues. We look forward to continuing the productive cooperation with our future sustainability work,” says Anders Egelrud, Stockholm Exergi CEO.
NIB has previously provided two loans to Stockholm Exergi to finance the biomass combined heat and power plant in Värtan in the City of Stockholm.
Stockholm Exergi is the largest provider of district heating in the Stockholm region, serving more than 800,000 residents and businesses in and around Stockholm. Approximately 97% of the district heating system operated by Stockholm Exergi is based on renewable or recycled energy sources.
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
Tiina Kuusela, Senior Banker, at +358 10 618 0214, Tiina.Kuusela@nib.int
Iiris Anttalainen, Communications, at +358 10 618 0258, Iiris.Anttalainen@nib.int