NIB finances combined heat and power plant in Porvoo, Finland

Aerial view of the Kilpilahti industrial area. Photo: Borealis.

NIB has signed a long-term loan agreement totalling EUR 80 million with Kilpilahti Power Plant Ltd. for the refurbishment of the combined heat and power plant (CHP) in the Kilpilahti industrial area in the town of Porvoo, Finland.

The 18-year maturity loan will finance the replacement of 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 new backpressure 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.

“Making the energy output of the combined heat and power plant more efficient will improve the productivity in the Kilpilahti industrial area. This qualifies the project for NIB financing”, says Henrik Normann, NIB President & CEO.

The investment cost is around EUR 400 million. The project work has begun, and the new units are expected to be operational in 2018.

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

NIB is an international 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

Nordic Investment Bank:

Mr Sebastian Påwals, Director, Head of Energy & Environment, at +358 10 618 0527,

Ms Lisa-Maria Altenberger, Communications Unit, at +358 10 618 0234,

Borealis:

Ms Kerstin Meckler, Director Communications, at +43 1 22 400 389,

Neste:

Mr Jussi Hintikka, Head of Utility Management, at +358 50 458 4799

Veolia:

Mr Per Andersson, Communication Officer, VEOLIA NORDIC, at +46 72 740 55 02,