NIB helps finance €165m CHP plant in Sweden
The Nordic Investment Bank and the Swedish city of Västerås have signed a framework agreement for an uncommitted credit facility to be able to co-finance the municipality's phasing out of fossil fuels in its heat and power generation.
The SEK850 million (€82.6 million) loan facility is part of the investments by the municipality’s subsidiary energy company Mälarenergi AB in a new combined heat and power plant.
The new unit, which will be fuelled by wood and biomass, will replace the use of coal and oil.
The new CHP plant will contribute to an increase of around 25% in annual electricity production, whilst also maintaining the same level of heat production as prior to the implementation.
The total project cost is SEK1.7 billion (around €165 million). Initial work has already started, and the project is scheduled for completion by 2020.
