The EBRD is to provide a loan to AS Graanul Invest, a leading Estonia-based wood pellet producer, that will boost the volume of green energy generated in the Baltic States.
The EUR34.4 million (US$50 million) loan will finance the construction of two biomass fuelled CHP plants in Estonia and Latvia, each with a capacity of 6.4 MW of electricity and 15 MW of heat.
The financing will also fund associated energy efficiency investments in Graanul Invest’s adjacent pellet plants, improving the operational efficiency of its pellet production.
The EBRD says the project will not only increase the power generation capacity in Estonia and Latvia, but also contribute to increasing the share of renewable energy in the energy mix of the two countries.
The project is a continuation of last year’s involvement by the EBRD in the Baltic power sector, when it supported major infrastructure investments aimed partly at replacing generation capacity lost after the closure of the Ignalina nuclear power plant.
The EBRD has previously provided financing for biomass CHPs in Poland.
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