All agreed loans

Sweden. AB Fortum Värme Holding, co-owned with City of Stockholm

Date of loan: 7 Sep 2016
Country: Sweden
Customer: AB Fortum Värme Holding, co-owned with City of Stockholm
Amount in SEK: SEK 600 million
Amount in EUR: EUR 63.1 million
Maturity: 10 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 63 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

This is a complementary loan to finance the design, construction, operation and maintenance of the biomass CHP plant in Värtan, Stockholm. The SEK 600 million loan comes in addition to a SEK 1,400 million loan signed with Fortum Värme Holding samägt med Stockholms stad, AB in June 2014.

The biofuel-fired combined heat and power plant was inaugurated in May 2016, and is an important step in developing a sustainable energy supply for Stockholm. The plan is for district heating in the city to be entirely produced from renewable or recovered energy by 2030.

Fortum Värme Holding is equally co-owned by Fortum Oyj and the City of Stockholm. It produces and distributes district heating and cooling in the Swedish capital and five surrounding municipalities.

Fulfilment of NIB's mandate

An increase in the use of biomass will diversify the energy mix and add value to biomass harvested in the member area. Broadening of the value chain in member area energy production will eventually show in reduced imports of fossil fuels.

Sustainability summary

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

As the district heating in Stockholm consists of three connected plants, the new incinerator at Värtaverken will also influence the production at the other two plants. This is expected to lead to positive environmental effects in form of reduced emissions of carbon dioxide, as some fossil fuels will be replaced with biofuels.

Press release

NIB beviljar kompletterande lån till biokraftvärmeverk i Stockholm