31 May 2021
EUR 50 million
|Date of agreement:||1 Apr 2009|
|Amount in EUR:||EUR 25 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
This loan contributes to climate change mitigation: 75%
The 10-year-maturity loan totalling EUR 25 million has been provided for financing the upgrading and refurbishment of existing hydropower plants. New technology will allow the company to increase its output of renewable and emission-free energy at three plants: Pirttikoski I-II, Vanttauskoski I-II and Ossauskoski I-III built in the 1950s and 60s. The increase will amount to 100 GWh, or up 25% from the current level.
Kemijoki Oy, with ownership split 50/50 between the Finnish state and private owners, is Finland's largest producer of hydroelectric power and related services. The company operates twenty hydropower plants, sixteen of which are located on the Kemijoki river. In a normal year, Kemijoki's total power production reaches 4,500 GWh, one third of total national hydropower production and 6.5% of the total electricity production in Finland.
Kemijoki is responsible for 30% of national daily regulation and is the most significant supplier of frequency-controlled operation and disturbance reserves in Finland.
Kemijoki's investment programme will help increase the output of electricity generation and minimise the risk of hazardous leakage from the power plants' turbines since the new turbines need much less hydraulic oil for lubrication. Another important aspect is the increase in Kemijoki's capacity to provide balancing power to the grid.
A 75 % share of the project qualifies as environmental investment and qualifies under the CLEERE facility.