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IFC approves loan for Serbia’s largest biomass CHP project to decarbonize paper industry

By District Energy posted 02-27-2024 15:27


Balkan Green Energy News


IFC approved a EUR 60 million type A loan and facilitated a syndicated package of EUR 46 million as the implementing entity for Drenik ND. The company will develop a captive biomass-fired combined heat and power (CHP) plant in Serbia, refinance debt and strengthen its working capital, according to the documentation.

Drenik is the largest tissue paper producer in the country. It operates a factory on the outskirts of Belgrade, in an industrial zone in Krnjača, where it plans to install the cogeneration system, and another facility in neighboring Hungary.

In addition, IFC will provide advisory support to improve the company’s corporate governance and elevate environmental and social management systems, the announcement adds. The CHP plant for own use, set to become the largest of its kind in Serbia, would have 8 MW in electricity generation capacity alongside 16 tons of steam per hour. The idea is to replace grid electricity usage and reduce natural gas consumption.

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