The European Investment Bank has recently announced funding through a loan for the replacement of a coal-fired district heating plant in Kiel, capital of the German Federal State of Schleswig Holstein.
The loan is estimated at €105 million (US$117 million), and the total investment mobilized by the EIB is €248.8 million (US$278 million). The funds will be lent by the bank as part of the European Fund for Strategic Investment to STADTWERKE KIEL AG the promoter.
The projects involves the construction and operation of a modern and environmentally responsible energy supply plant (including heat storage and an electrode boiler) with around 200 MW capacity for power, and nearly the same capacity for heat in the city of Kiel.
The plant shall be equipped with 20 gas-fired engines and a heat storage facility. The plant shall mainly supply Kiel's local district heating network and replace the current coal-fired power plant, which has been in operation for over 40 years.
The project seeks to maximize flexibility in generating heat and power, in particular allowing the operator to provide stabilizing services to the grid.