The Nordic Investment Bank (NIB) and the Swedish local energy company Njudung Energi Sävsjö AB (formerly Sävsjö Energi AB) have signed a long-term loan agreement of SEK 40 million (EUR 4 million) for upgrades to the district heating system in Sävsjö, southern Sweden.
The 20-year-maturity loan will finance a new biofuel-fired boiler and reinforcements of existing connections, allowing new clients to be connected to the network.
The project is eligible for financing from NIB Environmental Bond proceeds.
The new boiler has capacity to increase the annual heat production by 8%. Locally sourced wood chips will be used as fuel. The efficiency of fuel utilization will increase by 15–20% due to implementation of modern boiler technology, and the costs for fuels will be cut by approximately 30%. Since fossil peak load fuels are replaced by biofuel, greenhouse gas emissions are reduced.
The boiler is scheduled for test runs in January 2017.
The main supplier for the boiler construction is Axis Technologies, a mid-cap from Lithuania.
Njudung Energi Sävsjö AB is a local energy company providing electricity to 3,500 customers, district heating in Sävsjö and Rorvik, and gas distribution in Sävsjö. It is jointly owned by Sävsjö Municipality and Njudung Energi Vetlanda AB (formerly Vetlanda Energi och Teknik AB.)
About the Nordic Investment Bank:
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.