All agreed loans

Sweden. Jönköpings Rådhus AB

Date of loan: 5 Nov 2015
Country: Sweden
Customer: Jönköpings Rådhus AB
Amount in SEK: SEK 100 million
Amount in EUR: EUR 11 million
Maturity: 25 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The loan has been provided for financing the construction of the biomass-fuelled heat and power plant Torsvik 2 in Jönköping, Sweden.

Torsvik 2 is operated by Jönköping Energi AB, and was commissioned in September 2014. The 110-MW plant has replaced inefficient boilers and pumps. With an annual heat production capacity of 340 GWh, Torsvik 2 is able to satisfy 50% of local demand. Electricity production is 120 GWh per year.

Additionally, the loan finances the expansion of Jönköping’s fibre cable network. The venture is a joint project between the municipality of Jönköping and Jönköping Energi AB, and will provide Internet connections to 26,000 households.

The parties have agreed to consider increasing the financing for the project up to SEK 500 million.

Jönköpings Rådhus AB is fully owned by the municipality of Jönköping and owns 100% of Jönköping Energi AB, which offers energy, waste management and telecommunications solutions.

Fulfilment of NIB's mandate

The new CHP plant has secured heat production for 30,000 households by replacing a number of smaller, less efficient boilers. The 75% increase in electricity output generated by the plant will be sold to the national grid.

Torsvik 2 is not expected to have a significant impact on emission levels. Should peat be used as fuel, CO2emissions are expected to increase by 25,000 tonnes annually. The allowed proportion of peat in the fuel has been limited to 15%.

The investment in the local ICT infrastructure will give households and small businesses access to operator-neutral, high-speed broadband connectivity, which was previously only available to larger companies in the region. The city network connection allows for extended use of cloud services, distance education, healthcare and media services.

Sustainability summary

No sensitive locations have been impacted during the construction phase or after commissioning of the CHP plant. Emission reduction measures have been applied, and pollution levels in the ambient air are within specified limits. Wastewater from the plant is processed at an internal treatment facility.

No significant environmental concerns have been identified in connection with the optical fibre cable network project.

Press release

NIB finansierar biobränslekraftverk och optofibernät i svenska Jönköping