A new International Finance Corporation investment will support Drenik, Serbia's largest tissue paper producer, to develop a combined heat and power (CHP) biomass plant.
This will be the country's first large-scale captive CHP biomass plant – boosting renewable energy generation and helping to reduce greenhouse gas (GHG) emissions in Belgrade.
The plant will have about 8 megawatts of electricity generation capacity and 16 tons per hour steam capacity, thereby replacing grid electricity usage, reducing natural gas consumption in its Serbian production facility and providing liquidity to operations.
The financing package to Drenik includes a €60 million "A" loan from IFC and a €46 million trust loan from IFC, acting in its capacity as the implementing entity for the Managed Co-lending Portfolio Program.
In addition, IFC will provide advisory support to improve Drenik's corporate governance, elevate environmental and social (E&S) management systems by implementing an E&S action plan and strengthen insurance practices.
Igor Perić, Drenik's owner, said: "Biomass power generation technologies offer cost-competitive solutions for energy and heat generation that are also efficient in carbon intensity. IFC's investment in our new plant will enable us to improve the sustainability and reliability of our energy sources, helping us strengthen our market position while contributing to crucial decarbonization efforts."
The project aligns with a key objective of the World Bank Group's Country Partnership Framework for Serbia for 2022–2026 to spur greener and more resilient growth.
In compliment, IFC's strategy in Serbia focuses on addressing development needs in three key areas: competitiveness, connectivity, and climate.
"Driving sustainable and inclusive growth is at the heart of IFC's global strategy," said Nicolas Marquier, IFC regional manager for the Western Balkans.
"Our investment supports that by boosting green and clean production for a key regional player, strengthening its environmental standards and energy efficiency, and reducing harmful emissions - ultimately supporting Serbia's transition to a resilient, low-carbon economy."
IFC investment enables Serbia’s first large-scale captive CHP biomass plant
