EBRD considers financing Estonian biomass projects

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EBRD considers financing Estonian biomass projects

The European Bank for Reconstruction and Development (EBRD) is considering a senior secured corporate loan to AS Graanul Invest for the construction of two new biomass combined-heat-and-power plants (CHP) located in Estonia.

The senior secured corporate loan ammounts up to €42 million (US$47.3 million) with a maturity of 10 years.

The projects are part of AS Graanul Invest’s two year (2015-2016) investment programme.

The new CHPs will be located adjacent to the existing Imavere and Osula pellet production plants. The plants are the following:

The CHPs will be based on grate type biomass boiler and will be able to burn efficiently significant proportion of forest wood wastes, thus reducing significantly related environmental and safety risks.

The CHPs will generate approx. 2% of Estonian power and hence Estonia will reach its renewable energy target (20%). Graanul will be selling approx. 50% of its power produced externally, partially to grid operator Elering for market price (plus premium) taking on power market risk.

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