3 Aug 2020
EUR 60 million
Industries and services
NIB and the Finnish energy company Oulu Energia have signed a EUR 100 million loan agreement to finance the construction of a new combined heat and power (CHP) plant in Oulu, Finland.
The 18-year-maturity loan is part of the company’s investments in modernising its production, focusing on cutting emissions into the air.
The new CHP plant will replace an old boiler that has been in use since 1977. Compared to its old counterpart, the new unit will maintain similar levels of heat and power generation while using a greater share of biofuels. The fuel mix of the new CHP plant will consist of approximately 70% wood biomass, 15% peat and 15% recycled fuel.
“The investment will help to reduce emissions into the air thanks to higher utilization of biofuels and better flue gas treatment. It will contribute to Oulun Energia’s strategic goal of becoming carbon-neutral by 2050”, says Henrik Normann, NIB President and CEO.
In addition to the environmental benefits, upgrading production assets will improve the company’s productivity.
The total project cost is approximately EUR 200 million. The construction work has started in June this year, and the new CHP plant will begin operating by the end of 2020.
Oulu Energy is a limited-liability company owned by the City of Oulu. It is the largest energy group in Northern Finland, operating in the production of fuels; the production, sale and distribution of electricity and district heat; and other energy services.
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.
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