Finland. Nivos Energia Oy
| Date of agreement: | 21 Oct 2019 |
|---|---|
| Country: | Finland |
| Customer: | Nivos Energia Oy |
| Amount in EUR: | EUR 10 million |
| Maturity: | 14 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 31%
NEB category: Blue Bond project and Several green categories
Amount disbursed: EUR 1.7 million and 1.4 million
This project has been financed with the proceeds of NEBs issued under the previous framework
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided to Nivos Energia Oy for financing the company’s renewable energy and water investment programme in the municipality of Mäntsälä during 2018–2022.
The investment programme includes the construction of a biogas plant at Knehtilä, an organic cereal farm in the rural community of Palopuro, ca. 50 kilometres north of Helsinki. Biomass from green manuring leys from the farm’s crop rotation, combined with horse and chicken manure, will be processed to biogas, to be used for farm machinery and local sale for passenger cars. Knehtilä farm is part of a network of organic agricultural producers and processors, and the new biogas plant will support the cooperative’s food production system by ensuring energy and nutrient self-sufficiency.
Further, the programme includes the recovery of waste heat produced by a data centre in Mäntsälä for use in the local district heating system.
Other energy-related investments concern the construction of a new power connection between the residential areas of Hikiä and Kapuli, and the cabling and reinforcing of Nivos’ distributions network. In addition, charging stations for electrical vehicles will be installed in the municipality.
The water-related investment programme involves the improvement and upgrade of wastewater collection and treatment, as well as the expansion of drinking water infrastructure.
Nivos Energia Oy is fully owned by Nivos Oy, a 100% municipality-owned utility operating in the municipality of Mäntsälä, north of Helsinki. Nivos distributes electricity and district heating, and provides drinking water and wastewater services. The company further supplies natural gas and biogas, and offers broadband services and solar panels.
Fulfilment of NIB's mandate
Productivity:
The new power line between Hikiä and Kapuli will add a third connection between the electrical grid and Nivos’ distribution network. The connection is therefore expected to improve the security of supply in the region. This is especially relevant to Kapuli, where the construction of new businesses and residential buildings will increase power consumption. The investment in the cabling of existing power lines will improve the security of supply and help to reduce the response times in case of network failures.
Environment:
The construction of a biogas production facility will allow Knehtilä farm and its agricultural cooperative to locally recycle the nutrient flows generated in production processes and provide a low-carbon energy supply, contributing to the cooperative’s self-sufficiency. The investment supports sustainable food production and circular economy. It is also expected to reduce operational costs at the farm, due to reduced fertilizer and energy costs.
Recovery of waste heat from the data centre in Mäntsälä significantly contributes to the decarbonisation of the municipal district heating. Additional vehicle charging stations in the municipality promote the use of electrical vehicles.
Water-related investments aim at maintaining a functioning water supply and wastewater treatment.
Indicators for the expected annual impacts related to the investment:
- Annual use of agricultural waste for energy recovery in Palopuro; green manuring ley (2,350 t/a, horse manure (1,000 t/a) and chicken manure (80 t/a)
- Palopuro annual biogas production 2,500 MWh/a – corresponding to the annual energy need of 140 biogas vehicles
- Palopuro annual generation of digestate for fertilizer and soil improvement use 3,000 t/a
- Annual output of excess heat from data centre into the district heating system 30 GWh/a
Sustainability summary
No significant sustainability issues have been identified.
