EIB supports CHP plant in Sweden

The European Investment Bank (EIB) is supporting energy firm Fortum Värme to design, build and operate a new biomass-fired combined heat and power (CHP) plant with a €260 million loan. The plant will be located in Stockholm and deliver heat to the existing district heating system in Sweden's capital and electricity to the public grid.

The EIB is also financing the necessary biomass handling facilities and the upgrading of port facilities related to the plant. The advanced boiler technique will allow for application of a range of solid biofuels, reducing the use of fossil fuels. Fortum Värme's plant will have a production capacity of 280MW of heat and 130MW of electricity.

The construction of the new plant is planned to be finalised by 2016. The project is expected to create 35 new permanent posts for the operation and maintenance of the CHP plants, including on-site biomass treatment.

Jonathan Taylor, EIB VP responsible for lending in Sweden, says: 'The EIB strongly supports the increased use of renewable energy and fosters energy efficiency. We therefore particularly welcome this agreement with Fortum Värme, as the new biomass plant will enable significant energy savings and contribute to climate neutral production of district heating in Stockholm. The project will also, importantly, contribute to growth and employment in the European Union by supporting the forest management and biomass equipment industry in Europe.'

Anders Egelrud, CEO of Fortum Värme, adds: 'When the plant is in operation, 90% of our heat and electricity production will be based on renewable and recovered energy. By 2030 at the latest, this ratio is expected to be 100%. We are also very pleased with this EIB loan, which forms a sound basis for our efforts to meet our shareholders' desire to ensure standalone financing of Fortum Värme before 1 January 2016.'

This project is a continuation of the EIB's successful cooperation with Fortum Corporation. Including the current operation, the bank has provided four loans to the group to support investments in the modernisation of Stockholm's heating and power supply networks as well as upgrading the electricity distribution networks in Sweden.

In 2013, EIB financing in Sweden amounted to €1.57 billion.