All agreed loans

Finland. Kaukaan Voima Oy

Date of agreement: 29 Nov 2007
Country: Finland
Customer: Kaukaan Voima Oy
Amount in EUR: EUR 70 million
Maturity: 17 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and water


The 17-year-maturity loan totalling EUR 70 million is aimed at financing the construction of a new multi-fuelled power plant in Lappeenranta in eastern Finland. The new power plant will replace two older plants fuelled with natural gas and biomass bi-products. The project is being implemented by Kaukaan Voima Oy owned by the Finnish energy companies Pohjolan Voima Oy and Lappeenrannan Energia Oy. Besides electricity, the power plant will also produce steam necessary for an industrial area located in Kaukas as well as district heating for the town of Lappeenranta. The Kaukas power plant will be utilising biomass by-products from the industrial area. As additional fuel, the power plant will use peat, whereas natural gas will function as support and reserve fuel. The new plant will be capable of producing 152 MW of process steam, 110 MW of district heating and 125 MW of electricity. The plant is expected to be ready in the beginning of 2010. The project company Kaukaan Voima Oy was established in 2002 and is owned by Pohjolan Voima Oy and Lappeenrannan Energia Oy.

Sustainability summary

The Kaukaan Voima project will have some positive environmental impacts. Kaukaan Voima has received the necessary environmental permit from the eastern Finland Environmental Permit Authority. The new plant will use more efficient techniques than the two older plants to be replaced as the result of this project. It fulfils BAT (Best Available Techniques) criteria according to the EU BREF, BAT reference document in respect to emissions to the air. A larger part of the fuel mix will be wood-based fuels. The remaining part of the fuel mix will be domestic peat. The new plant will emit more fossil CO2 than the two existing power plants, but at the same time also produce more electricity. As a result, taking into account the crowding out effect, the national CO2 balance will be substantially reduced.