All agreed loans

Finland. Nokianvirran Energia Oy

Date of agreement: 13 Feb 2015
Country: Finland
Customer: Nokianvirran Energia Oy
Amount in EUR: EUR 22 million
Maturity: 15 years
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 constructing a new 68 MW heat energy plant in Nokia, Finland.

The plant is owned and operated by Nokianvirran Energia Oy, a special-purpose Mankala company owned by Finnish utility Leppäkosken Sähkö (40.3%), Finnish tyre maker Nokian Renkaat Oyj (32.3%) and Swedish hygiene products maker Svenska Cellulosa AB (27.4%). The Mankala model is a joint venture model that sells the produced energy to its shareholders at cost price.

The plant will produce 120 GWh of district heating annually for the town of Nokia, sold by Leppäkosken Sähkö, as well as 207 GWh of process steam for a Nokian Renkaat factory and an SCA tissue plant. The plant will primarily be fuelled by wood chips, peat and, to a lesser extent, fibre sludge and bio-sludge.

The new plant will be built next to, and replace, an existing gas-fired heat and power plant owned by Nokianvirran Energia Oy.

Commissioning of the new plant is scheduled to take place in the late spring of 2016.

Fulfilment of NIB's mandate

The project will increase output capacity, tangible capital and productivity. Productivity gains from the increase in material efficiency will be passed on to the local end users of heat and steam. This will lower district heating costs and add value to the product offerings of Nokian Renkaat and SCA.

Switching fuels from natural gas to biomass will increase the security of energy supply and add value to forest biomass in the region. By replacing natural gas with local fuels, the company also broadens the region’s share of the value chain created by the companies.

The average fuel mix of the new boiler will consist of approximately 65-100% of solid biofuels, 0-5% silt and 0-30% peat. Hence the project will increase the share of renewable fuels in steam and heat generation.

Sustainability summary

The project will use best available techniques and proven technology, and NIB assesses that only minor environmental impacts may occur.

Press release

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