Successful financial close of Kilpilahti Power Plant in Porvoo, Finland

16.03.2016 / News / Financial

The joint project between Neste, Veolia and Borealis to arrange power plant operations and build a new power plant in Kilpilahti, Porvoo, Finland has been confirmed in the form it was announced in December 2015. The banks funding the project have given their final commitment to the plan. In the arrangement, Neste will transfer its existing power plant to Kilpilahti Power Plant Limited (KPP). The company will build a new combined heat and power plant in Porvoo to match the needs of Neste and Borealis. Neste and Veolia both own 40% of KPP, and Borealis owns 20%.

The steam generation capacity of the new power plant is 450 MW, and its electricity generation capacity is 30 MW. The total investment value of the power plant is about EUR 400 million. The plant, to be operated by Veolia, is scheduled for commissioning in 2018.

The environmental benefits from replacing the existing power plant are significant. The new power plant is being constructed in accordance with the latest environmental regulations, including the European Commission's Industrial Emissions Directive (IED), and is notably expected to reduce carbon dioxide emissions by approximately 20% compared to the current situation. Is also a good example of resource efficiency and circular economy since more than 80% of the fuels (e.g. asphaltene) that will be used in the new power plant are side streams of the refinery and petrochemical plant.

The Spanish-based T├ęcnicas Reunidas is the main supplier for the construction, Neste Jacobs will implement connections and other infrastructure in the project. The project is funded by the European Investment Bank (EIB), the Nordic Investment Bank (NIB), and commercial banks including Bank of Tokyo- Mitsubishi UFJ (BTMU), ING, Nordea, Skandinaviska Enskilda Banken (SEB), and Unicredit.

END

For further information please contact:

Borealis:
Kerstin Meckler, Director Communications
tel. +43 (0)1 22 400 389, e-mail: kerstin.meckler@borealisgroup.com

Neste:
Jussi Hintikka, Head of Utility Management
tel. +358 (0)50 458 4799

Veolia:
Per Andersson, Communication Officer, VEOLIA NORDIC
tel. +46 (0)72 740 55 02, e-mail: per.andersson@veolia.com