The European Investment Bank has signed a €190m ($201m) loan agreement with Lietuvos Energija for the construction of new combined-heat-and-power plant in Lithuania.

The project in Vilnius will be a biomass- and waste-to-energy-fired CHP plant with total capacity of 88 MW, supplying electricity to the national grid and heat to a district heating system in Vilnius.

“Lithuania has a growing economy and an increased need for cleaner environment and efficient use of energy resources,” said the bank’s vice-president Jan Vapaavuori.

He added that the project would be “a key stepping stone to an improved security of supply, as well as more cleanly generated energy”. 

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