3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||4 Apr 2011|
|Amount in EUR:||EUR 69.6 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and water|
This loan contributes to climate change mitigation: 100%
The loan has been provided for building a waste-fuelled combined heat and power (CHP) plant in Klaipeda, Lithuania.
The new CHP plant will be fuelled by municipal waste, non-hazardous industrial waste and biomass. Its future output capacity is set at approximately 60 MW of district heat and 20 MW of electricity. The estimated fuel demand is 245,000 tonnes per year.
Electricity generated in the course of incineration process will be supplied to the electric energy grid, and thermal energy will be supplied to the city. The city's district heat system has approximately 150,000 customers and the new CHP plant will be producing 40% of the total need. The district heat produced at the plant will replace natural gas-based heat production capacity.
The CHP plant is being built by UAB Fortum Klaipeda, owned by Fortum and the local energy company Klaipedos Energija. The plant is expected to commence operations during the first quarter of 2013.
Switching to combined heat and power production will increase the efficiency of the energy production and crowd out the use of natural gas by approximately 39,000 tonnes a year. The emissions of greenhouse gases are expected to decrease by approximately 106,000 tonnes of CO2 a year. The new CHP plant will be the first large scale waste-to-energy plant in the Baltic countries.
The plant will play a key role in the city's waste management and will significantly reduce the disposal of waste in the local landfill. The district heat produced at the plant will replace natural gas-based heat production capacity and help reduce dependence on the gas imported from Russia.
This is a project with a potentially extensive environmental and/or social impact (category A, read more)
Technical solutions selected for the CHP plant are considered to be in line with BAT. All emissions are expected to comply with the operational emission levels associated with the use of BAT. The main environmental issues, apart from the plant's thermal energy efficiency, include emissions to the air, mainly particles, NOx and dioxins. The bottom ash will be deposited at a local landfill and the fly ash will be deposited at a landfill for hazardous wastes. The project will lead to decreased emissions of CO2 as solid waste and bio-fuels will replace natural gas for generation of heat for the district heating in Klaipeda. The traffic locally is estimated to increase by 100 trucks a day, but as the site is situated in an industrial area, no traffic problems are expected due to the operation of the incineration plant.