15 Dec 2010

NIB finances new hydropower station in Greenland

NIB has provided a EUR 33.5 million (DKK 250 million) loan to the Greenland Self Rule Government to finance the construction of a new hydropower station near Sisimiut, on the western coast of Greenland. 

The 15-year-maturity loan will help finance the construction of the new hydropower plant, which was officially opened in April 2010. The plant is expected to generate 52 GWh this year and will replace two diesel generators in the town of Sisimiut.

Due to its geography and climate, Greenland is dependent on local electricity production.  Until now, the diesel generators have been the only source of electricity for the 6,000 inhabitants of Sisimiut.

“We are pleased to be a contributing factor to the shutting down of the fossil fuel run power station in Sisimiut. The new hydropower plant will silence the polluting diesel generators, leading to improved air quality, lower noise levels, and not least access to more reliable and affordable electricity for the population of Greenland,” says NIB’s President and CEO Johnny Åkerholm.

The new hydropower station will result in a reduction of CO₂ emissions of roughly 19,000 tonnes per year.

The Greenland Self Rule Government will on-lend the NIB-loan to the local energy company, Nukissiorfiit.

The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. 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

Lars Fuglesang, Senior Manager, Origination, tel. +358 10 618 0508,

Nina Monsen, Senior Communications Specialist, tel. +358 10 618 0291,