All agreed loans

Finland. Kilpilahti Power Plant Ltd

Date of agreement: 16 Mar 2016
Country: Finland
Customer: Kilpilahti Power Plant Ltd
Amount in EUR: EUR 80 million
Maturity: 18 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water


The loan has been provided for the refurbishment of the combined heat and power plant (CHP) in the Kilpilahti industrial area outside the town of Porvoo, Finland.

The project will replace two gas- and oil-fired boilers that no longer comply with emission limits and two steam turbines that are reaching the end of their operational lifespans.

Three new boiler units with a total output of 450 MW and a new back pressure steam turbine will be installed. The newly refurbished CHP will mainly provide high-pressure steam and demineralised water to the industries inside the Kilpilahti industrial area. The electricity generated will be delivered to the grid.

The new units will be located on the premises of the existing power plant. The investment cost is approximately EUR 400 million. Construction has begun and operations are expected to commence in 2018.

Kilpilahti Power Plant Ltd. (KPP) is a joint venture company owned by Neste Corporation (40%), Veolia Group (40%) and Borealis Polymers Oy (20%). The Kilpilahti industrial area is the largest concentration of oil refinery and petrochemical industries in the Nordic region, involving ten companies and around 3,500 employees.

Fulfilment of NIB's mandate

The project is expected to secure energy supply to the petro-chemical cluster in the Kilpilahti area. The new boilers and turbines are assessed to increase the energy efficiency of the CHP plant by 7-8%. Additionally, the utilisation of side-streams from production processes of the resident industries will increase.

The new CHP plant will be equipped with enhanced combustion technology to reduce gaseous emissions and to comply with new environmental standards. The Kilpilahti industrial area, including the CHP plant, will continue to be subject to the EU Emissions Trading System.

Sustainability summary

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

The project has been subjected to a formal environmental impact assessment process, as it prolongs the lifetime of a large scale power plant using fossil fuels. The key environmental issues are emissions of particulate matter and carbon dioxide to the air. The analysis further assessed that the refurbishment of the boilers and turbines is likely to contribute to a decrease of nitrogen oxide and sulphur oxide emissions of the CHP.

Press release

NIB finansierar kraftvärmeverk i Borgå i Finland


Press release

NIB rahoittaa lämpö- ja sähkövoimalan saneerausta Porvoossa