Swedish firm Tekniska verken i Linköping has signed a SEK450 million ($67 million) loan agreement with the Nordic Investment Bank (NIB) to finance a new combined heat and power plant in the municipality of Linköping in central Sweden.

The new CHP plant will incinerate municipal waste and biomass and will be built at the Gärstadverket facility in Linköping (pictured).  It will utilise approximately 180,000 tonnes of municipal solid waste annually and will be capable of producing 500 GWhth and 130 GWhe per year.

Expected to begin operating in March 2016, the new plant will require an investment estimated at SEK1 billion including the 15-year NIB loan.

Tekniska verken i Linköping is a multi-utility company ultimately held by the Linköping municipality.