EIB offers €175m loan to build new CHP plant in Finland

WCN Editorial Team 18 Mar 2016 EUROPE ENERGY & UTILITIES

The European Investment Bank (EIB) has provided a €175m long-term loan for the construction of a new industrial combined heat and power (CHP) plant in Kilpilahti, Finland.
 
Estimated to cost €400m, the project will be developed by a joint venture between Borealis and Neste, alongside energy service company Veolia.

Veolia will oversee the operation and maintenance of the plant. The project is being funded by the Nordic Investment Bank, BTMU, ING, Nordea, SEB and UniCredit.

The new plant will supply heat to the oil refinery and chemicals plant on the site, and provide electricity to the grid.

A total of four new steam and power generation assets will offer an installed capacity of 450MW thermal and 30MW electrical power. The new units will replace the old ones, enhance their environmental performance, as well as utilise industrial side streams such as asphaltene that would not be otherwise recovered for energy production.

The facility will comply with the latest environmental regulations, and is projected to minimise carbon dioxide emissions by 20% after becoming operational during 2018.

EIB vice president Jan Vapaavuori said: “The European Investment Bank strongly promotes energy efficiency and security of energy supply. Therefore, we are glad to foster the construction of the Kilpilahti power plant, which will offer long-term sustainable support to the largest concentration of oil refinery and petrochemical industries in the Nordic region.

“The new plant will not only produce electricity and heat with higher efficiency and lower environmental impact, but also ensure a reliable supply of heat to on-site industrial consumers.”

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