SwedishTranas-Stadshus AB has secured a $23m financial package to be used for the expansion of the Tranas district heating plant in Southern Sweden.

The Nordic Investment Bank (NIB) provided the loan, which has a 15-year maturity and is earmarked for the financing of a new biofuel-based boiler.

The investment into a new 35 MW combined heat and power boiler will increase the capacity of Tranås Energi to 121 MW from 86 MW. The boiler will burn wood chips based on forest residuals and produce twice as much electricity and heat as the old boiler.

“This NIB loan helps the local authority in our member country to switch part of their energy sources from oil to biofuel and is an example of how a local authority can reduce its CO2 footprint. This fits well with the Bank’s mandate to strengthen competitiveness and enhance the environment,” says Henrik Normann, NIB President and CEO.

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