The Nordic Investment Bank (NIB) is to finance a new biomass combined heat and power (CHP) plant in Stockholm, Sweden.

A 10-year loan of €65 million ($73 million) was agreed this week with plant owner Fortum Värme, a joint venture between Fortum and the city of Stockholm.

The plant was inaugurated in May and is expected to begin producing district heating and cooling for around 200,000 households this autumn. It will burn around 12,000 cubic metres of wood chips per day.

The loan is planned to help finance the design, construction, operation and maintenance of the plant, the NIB said.