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NIB finances district heating in Norway

by dbdh

NIB has signed a 13-year-maturity loan with the Norwegian energy company Eidsiva Energi AS to finance a new biofuelled district heating plant and to upgrade an existing network.

The loan totals EUR 27 million (NOK 226.5 million) and will be used to finance a new biofuelled energy plant at Kallerudlia in Gjøvik, Norway. Eidsiva Energi will also continue to develop its district heating network in Gjøvik.

The commissioning of the wood-chip fuelled plant is scheduled for September 2014. Heat production is expected to gradually increase to an estimated 60 GWh in 2018. The new heat boiler will have a base load capacity of 12 MW and a reserve capacity of 30 MW.

The Kallerudlia plant will replace several oil based heating plants that will reduce annual CO2 emissions in Gjøvik by around 14,800 tonnes.

“The people and industry in Gjøvik will benefit from reduced air pollution when Eidsiva Bioenergi’s new district heating plant starts to replace fossil-fuelled heating plants,” says Henrik Normann, NIB President and CEO.

The Norwegian energy company Eidsiva Energi is the largest producer, distributor and trader of electricity in the counties of Oppland and Hedmark. It is owned by the Hedmark and Oppland counties and 26 of their municipalities.

The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Ynge Soederlund, Senior Manager, Origination, tel. +358 40 530 4438, yngve.soderlund@nib.int

Dimitrijs Alehins, Senior Communications Specialist, tel. +358 10 618 0296, dimitrijs.alehins@nib.int