NIB finances renewable heat generation in Lithuania

NIB and the municipal utilities company Šiaulių Energija AB have signed a nine-year, EUR 10 million loan agreement for the design and construction of a new biofuel plant in Šiauliai, northern Lithuania.

The 20 MW biofuel plant will replace natural gas with sustainable biomass, minimising the use of fossil fuels for heat production.

Increasing the share of energy production from renewables will transform the district heating in Šiauliai and nearby areas, significantly reducing the impact on the environment. After the construction of the new plant, the greenhouse gas emissions associated with Šiaulių Energija’s heating operations are estimated to decrease by 78%.

Shifting away from the use of natural gas will benefit the consumers connected to the company’s district heating system. The diversification of the energy mix will increase the security of supply, relieving the pressure on heat prices and reducing the price volatility of the cost base. In the long term, the increased generation capacity and a higher share of renewables, along with energy efficiency improvements in buildings, will allow Šiaulių Energija to phase out the use of fossil fuels almost entirely.

“This project showcases how to build energy resilience in a cost-efficient and sustainable way. As the need to secure sufficient renewable energy is ever increasing, we are here to help Lithuania accelerate similar investments in years to come,” says André Küüsvek, NIB President & CEO.

Šiaulių Energija supplies district heating and hot water to the City of Šiauliai the 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.

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.

For further information, please contact:
Vilius Girkontas, Senior Banker, Infrastructure, at +358 10 618 0240, Vilius.Girkontas@nib.int
Vytautas Brazaitis, Communications Officer, at +358 10 618 0235, Vytautas.Brazaitis@nib.int