The European Investment Bank (EIB) is providing a EUR 260 million loan to the energy company Fortum Värme to finance the design, construction and operation of a new biomass-fired combined heat and power (CHP) plant in the Swedish capital.
The EIB said in a statement that the advanced boiler technology foreseen for the plant would allow for the use of a full range of solid biofuels, resulting in a significant reduction in the use of fossil fuels. According to the statement, the plant will support the sustainable management of EU forests through the use of regional forest residues.
The EIB is also financing the necessary biomass handling facilities and the upgrading of port infrastructure related to the plant, which will deliver 280 MW of heat to the district heating system in Stockholm, and 130 MW of electricity to the public grid. Construction of the new plant is to be completed by 2016.
EIB Vice-President Jonathan Taylor said in the statement that 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,” he said.