EIB provides loan to biomass plant in Finland

By Erin Voegele | June 15, 2016

The European Investment Bank has announced a loan agreement with an energy utility company in Finland for the deployment of a biomass-fired combined-heat-and-power (CHP) plant.

The EUR 75 million ($84.49 million) agreement was signed with Lahti Energia. According to the EIB, the new biomass plant is set to replace the old Kymijärvi I coal-fired power plant by 2019 and will run on 100 percent forest biomass.

According to information published by Lahti Energia, the facility will have the capacity to supply more than 780 GWh of thermal energy annually to a district heating network in the Lahti region of central Finland.

The company also indicated the plant will recover flue gases for use in a heat recovery process, increasing the efficiency of the plant. Ash generated in the combustion process will be recycled and used as fertilizer in the forest.

The project is scheduled to be built in two phases. The first will include 190 MWth of heat production, which is scheduled to be complete in 2019. According to Lahti Energia, if the electricity markets recover, the power plant can be easily be converted to CHP production utilizing Kymijärvi I’s existing facilities. In CHP mode, the plant would produce approximately 50 MW of electricity and 150 MW of district heat.