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Funding agreed for Swedish biomass CHP plant

A new biomass-fired combined heat and power (CHP) plant in Sweden is to receive funding through a long-term loan. à‚ 

The Nordic Investment Bank (NIB) and the municipality of Jàƒ¶nkàƒ¶ping have announced an agreement on a 25-year loan for SEK100m (€10.8m, $11.9m) for expansion projects at the Torsvik 2 plant (pictured) located 10 km outside Jàƒ¶nkàƒ¶ping.

The 110 MW/100 MWth plant came online in April and is operated by utility Jàƒ¶nkàƒ¶ping Energi, supplying around 50% of the municipality’s power and heat requirements. Through a district heating network, the plant supplies around 30,000 households. Fuel is provided by residue from the local forest industry and non-recyclable waste.

The NIB said the parties have agreed to discuss further financing up to SEK500m for the project.