All agreed loans

Finland. Vantaan Energia Oy

Date of loan: 16 Apr 2015
Country: Finland
Customer: Vantaan Energia Oy
Amount in EUR: EUR 64 million
Maturity: 20 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Environmental effect

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

Share of financing: 100%
Amount disbursed: EUR 64 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

The loan has been provided for Vantaan Energia Oy to finance the construction costs of a new waste-to-energy (WtE) plant in Vantaa, in the Helsinki Metropolitan Area.

Vantaan Energia Oy has built a WtE plant in Långmossebergen in eastern Vantaa. Operational testing began at the plant in March 2014, and commercial operations in September 2014. The plant is a combined heat and power plant with an annual electrical capacity of 600 GWh and an annual district heating capacity of 920 GWh, which corresponds to about half of Vantaa’s annual heat requirements. The plant is designed to burn approximately 340,000 tonnes of municipal solid waste a year with an overall annual efficiency of 95%.

New capacity was needed because growth in demand for district heating is predicted until 2020. In addition, the new WtE plant will replace one of the production units at the Martinlaakso power plant, which will come to the end of its service life by 2015 at the latest.

Vantaan Energia Oy is one of Finland’s largest urban energy companies. The company is owned by the City of Vantaa (60%) and the City of Helsinki (40%). Vantaan Energia Oy produces and sells electricity and district heating, and is responsible for the construction and maintenance of district heating networks in Vantaa.

Fulfilment of NIB's mandate

Competitiveness:
The waste fuel will diversify the Helsinki Metropolitan Area’s energy mix, thus increasing the value of waste in the region. In addition, the new usage of waste may improve the efficiency of current waste management practices.

Environment:
There is currently no energy recovery of solid municipal waste in the Helsinki Metropolitan Area, so the new plant will be beneficial for the region. It replaces approximately 300,000 MWh of power generation by coal annually in Vantaa, so emissions of greenhouse gases are expected to significantly decrease due to the project.

Sustainability summary

This is a project with a potentially extensive environmental and/or social impact (category A, read more)

The target of the thermal treatment plant is to provide an overall reduction in the environmental impact that might otherwise arise from the waste. These positive indirect impacts include a decreased need to deposit waste in landfills and decreased use of fossil fuels for heating. Furthermore, the plant contributes to reduced discharges of leachate from landfills and decreased emissions of landfill gasses, which among other things will lead to lowered emissions of fossil CO2.

The main environmental issues that arise directly from incineration installations apply to land use, transport of incoming waste and outgoing residues, overall process emissions into the air and water, as well as process noise and vibration.

Press release

NIB rahoittaa Vantaan uutta jätevoimalaa

 

Press release

NIB-lån till nytt avfallskraftverk i Finland