NIB loan to help increase renewable energy production in Greenland

NIB and the Greenland Self-Rule Government have signed a 15-year-maturity loan agreement totalling DKK 350 million (EUR 47 million) for the construction of a new hydropower plant.

The plant, with an installed capacity of 22.5 MW, is under construction outside the town of Ilulissat on the west coast of Greenland. The new power plant will harness the water discharge from two natural glacial lakes.

“This project is of high importance for Greenland as the island is reducing its dependence on energy production from fossil fuels. The new power plant will help increase power generation from renewable sources,” says Henrik Normann, NIB President and CEO.

The project includes building a 5.5-kilometre tunnel to direct water to three 7.5 MW turbines in an underground power station. The project supporting infrastructure includes a 60 kV overhead transmission line, running from the power plant to the town of Ilulissat, as well as roads and a small harbour. The first turbine is planned to be commissioned in November 2012 and full operation is planned from September 2013.

NIB is a multilateral financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Mr Vagn Lundhøj, Senior Manager Origination, at +358 10 618 0370,

Mr Dimitrijs Alehins, Senior Communications Specialist, at +358 10 618 0296,