The Nordic Investment Bank (NIB) has lent €20mn for a biomass plant in Sweden.

The borrower is Vimmerby Energy & Miljö and the loan has a tenor of 20 years. It will be used to build a combined heat and power plant (CHP) in Vimmerby, near the country’s southeast Baltic coastline.

Bark and woodchips from the surrounding forest will be used as fuel and the power generated will heat homes and industry in the surrounding area. The investment is expected to increase Vimmerby Energi & Miljö’s capacity by 50%, contributing to an annual increase of heat and electricity production of 90 Gwh and 20-25 Gwh, respectively.

NIB chairman Henrik Normann says: “The new and more efficient biofuel combined heat and power plant will benefit the inhabitants and industry in Vimmerby with a steady supply of district heating at reduced greenhouse gas emissions.”