The European Investment Bank (EIB) has provided a €175 million long-term loan for the construction of a new industrial combined heat and power (CHP) plant in Kilpilahti, Finland, that will supply heat to the oil refinery and chemicals plant situated on the same site.

Being built in accordance with the latest environmental regulations – including the European Industrial Emissions Directive – the new CHP plant is planning to reduce CO2 emissions by 20% compared to the current situation.

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.”

The new power generating plant is located 40km east of Helsinki within the Kilpilahti industrial area, the site of an oil refinery and petrochemical industries. It will serve the heat demand of this area and provide electricity to the grid. Four new steam and power generation assets will have an installed capacity of 450MW thermal and 30MW electrical power.

The project is being developed as a joint venture between Borealis and Neste, which both have operations in Kilpilahti’s industrial area, as well as Veolia, an experienced energy service company which will be responsible for the operation and maintenance of the power plant.

The total investment value is around €400m. Besides the EIB, Borealis, Neste and Veolia, the project is also being financed by the Nordic Investment Bank, BTMU, ING, Nordea, SEB and UniCredit.

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