Lithuania. Šiaulių Energija AB
| Date of agreement: | 31 Jan 2023 |
|---|---|
| Country: | Lithuania |
| Customer: | Šiaulių Energija AB |
| Amount in EUR: | EUR 10 million |
| Maturity: | 9 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Renewable energy generation
Amount disbursed: EUR 2 million
NEB-eligible share: 100%
NEB category: Renewable energy
Amount disbursed: EUR 2 million
This project has been financed with the proceeds of NEBs issued under both previous and current frameworks.
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 Šiaulių Energija for the design and construction of a new biofuel power plant in Šiauliai.
The new plant will increase the renewable heat generation capacity by 20 MW. Currently, the company operates 15 boiler houses with a capacity of 340 MW, and a district heating network of 150 km.
The project is estimated to be completed by the end of 2024.
Šiaulių Energija supplies district heating and hot water to the City of Šiauliai, Šiauliai district and nearby areas. The Municipality of Šiauliai owns 95.3% of the company. The municipality is the fourth largest in Lithuania, with around 100,000 inhabitants.
Fulfilment of NIB's mandate
Productivity:
As a result of the investments, natural gas consumption in the company’s fuel mix will decrease from approx. 64,000 MWh to around 14,000 MWh annually. Therefore, the diversification of the energy mix will increase the security of supply. This will relieve the pressure on heat prices and reduce price volatility of the cost base.
Estimated impacts in relation with the investments:
- Installed capacity: 20 MW
- Generation: 82,300 MWh
Environment:
The project will increase renewable energy capacity by replacing natural gas with sustainable biomass for heat production.
The greenhouse gas emissions are estimated to decrease by 78% due to the project. Although the new biofuel plant will result in some air pollution, the increase is expected to be minor and within the permittable limits.
Estimated impacts in relation with the investments:
- GHG reduction: 10,200 tonnes of CO2-eq annually
Sustainability summary
The plant will be fired with sustainable biomass as required by the national and EU legislation for such plants. In addition, it will be equiped with an economizer that allows using regenerated waste heat. The company is in the process of acquiring the integrated environmental permit that includes the new biomass powerplant.
In terms of EU Taxonomy alignment, the project fulfils substantial contribution criteria and Do No Significant Harm criteria are partially aligned.
