2012-01-30 10:43:53 -

NIB has provided a 7-year-maturity loan totalling EUR 18 million to Vaskiluodon
Voima Oy for the contruction of a gasification-based bioenergy plant in Vaasa,
Finland. Vaskiluodon Voima is building the new plant in order to decrease the
use of coal in energy production.



The new 140MW gasificaton-based bioenergy plant will be connected to the
existing power plant and enables the fuel mix of the existing power plant to be
broadened by substituting a part of the coal with domestic biofuels and peat.
The coal use will be reduced by 25%-40 %. In the beginning the fuel mix of the
gasification line comprises of 25% peat and 75% forest residues and biomaterials
such as reed. The needed fuel will be acquired from the surrounding area, no
more than 100 km from   the power plant. The new investment will not increase the
plant's output.


"The Vaskiluodon Voima project combines energy production with an innovative new
technology developed in Finland, allowing NIB to finance a project that brings
together two core sectors of its activities," says Johnny Åkerholm, NIB
President and CEO.

Biomass gasification is a new technology developed in Finland which has not been
used before on the scale now being planned. The project received the maximum
amount of grant from the Ministry of Employment and Economy due to the
innovative new technology being used for the first time in a large-scale
project.


 Vaskiluodon Voima is owned by EPV Energy Ltd. (50%) and Pohjolan Voima Oy
(50%). Its electricity and district heating producing energy plants are situated
in Vaasa and Seinäjoki.


The Nordic Investment Bank (NIB) is the common international financial
institution of the eight Nordic and Baltic countries. NIB provides long-term
financing to the energy, environmental, transport, logistics and communications,
and innovation sectors for projects that strengthen competitiveness and enhance
the environment. 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
Sebastian Påwals, Senior Manager, Origination, at
+358 10 618 0527,sebastian.pawals@nib.int
Kyra Koponen, Communications Officer, at +358 10 618 0297,kyra.koponen@nib.int






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Source: NIB NORDIC INVESTMENT BANK via Thomson Reuters ONE

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