7 Nov 2019
EUR 150 million
Energy and water
NIB and the Swedish city of Västerås have signed a framework agreement for an uncommitted credit facility to be able to co-finance the municipality's phasing out of fossil fuels in its heat and power generation.
The SEK 850 million (EUR 82.6 million) loan facility is part of the investments by the municipality’s subsidiary energy company Mälarenergi AB in a new combined heat and power (CHP) plant.
The new unit, which will be fuelled by wood and biomass, will replace the use of coal and oil. This will complete the transition to biofuels for heat and power generation in Västerås, as fossil fuels will no longer be used in the operations.
The new CHP plant will contribute to an increase of around 25% in annual electricity production, whilst also maintaining the same level of heat production as prior to the implementation.
The total project cost is SEK 1.7 billion (around EUR 165 million). Initial work has already started, and the project is scheduled for completion by 2020.
Västerås is the seventh largest municipality in Sweden. It was ranked by Swedish environmental media as the best environmental municipality in the country this year, and as the best energy municipality in 2016.
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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