The Nordic Investment Bank (NIB) and the Swedish utility Tekniska verken i Linköping have signed a loan agreement totalling SEK 450 million (€50 million) for the development of a new Combined Heat and Power (CHP) waste to energy facility in the municipality of Linköping in central Sweden.
According to the NIB, the loan is for a tenor of 15 years and the facility will generate around 15 MW of electricity and 57 MW of heat from the incineration of municipal waste and biomass.
Once operational the facility is expected to process approximately 180,000 tonnes of municipal solid waste a year.
The bank added that the overall efficiency of the Linköping plant will be high due to the use of techniques for generating flue gases with very low temperatures.
The facility will also feature a waste storage area that the bank said will be used in periods of low demand.
In total the new waste to energy CHP plant is expected to begin operating in March 2016. The investment is estimated to amount to SEK 1 billion (€ 111 million).
The NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. It finances private and public projects in and outside the member countries.
Tekniska verken i Linköping is a multi-utility company operating in district heating, electricity generation, trading and distribution, water distribution, wastewater treatment, broadband internet, biogas, as well as other infrastructure services and related businesses.
The company is wholly owned by the Linköpings Stadshus holding company, which in turn is held by the Linköping municipality.