14 Jun 2011

NIB loan for new heat and power plant in South-East Finland

NIB and SEB Leasing Oy have signed a loan agreement totalling EUR 23 million to finance the acquisition of construction equipment. The equipment will be leased to Porvoon Energia Oy for the construction of a combined heat and power plant in South-East Finland.

Porvoon Energia Oy will build a new combined heat and power plant in Tolkkinen in order to meet the increasing demand for district heat and energy supply in the Porvoo area. The plant will mainly be powered by using wood chips and forest residual. It is expected that the share of bio-fuel will be over 90%, and peat, used as reserve fuel, will account for less than 10% annually.

"With this new plant Porvoon Energia can, in addition to answering the growing demand for heat and electricity, increase the share of locally produced electricity on the market. The new plant will also cut down on the use of natural gas as a power source," says Johnny Åkerholm, NIB's President and CEO.

The new plant will lead to both direct and indirect reduction of CO2 emissions. It will partly replace existing district heat production using natural gas, and also reduce the amount of electricity purchased by Porvoon Energia from the spot market.

Porvoon Energia Oy produces and sells electricity and district heat, and is responsible for electricity and district heat networks in the City of Porvoo, which is the sole owner of the company. The new plant is expected to begin commercial operations in February 2013.

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

Sebastian Påwals, Senior Manager, Origination, tel. +358 10 618 0527,

Kyra Koponen, Communications Officer, tel. +358 10 618 0297,