The European Investment Bank (EIB) will provide a EUR 150 million ($160.7 million) loan to Helen Ltd. for two new renewable energy projects to transform Helsinki’s district heating system.
The energy company owned by the City of Helsinki needs EUR 209 million ($224 million) for the projects. EIB said in a media release that the loan covers 72 percent of the projects’ bill. The investment is part of the EIB’s package of support for REPowerEU, the plan to reduce the European Union’s dependence on imports of fossil fuels.
According to the EIB, the financing will be used to build a new heat pump plant and replace coal fuel with biomass pellets in one of Helen’s heating plants in Helsinki. Besides heating, Helen serves more than half a million customers with electricity and cooling, the EIB noted.
Helen’s goal is to become 100 percent carbon neutral by 2030. The company is making significant investments in a sustainable and modern energy system and building capacity to replace more than 2,000 megawatts of installed fossil energy production capacity by 2025, EIB said.
“The financing will help replace fossil fuels with renewable fuels, which is one of the key targets of REPowerEU and one of the most impactful ways to deal with the current energy crisis and mitigate the effects of climate change”, said Thomas Östros, EIB vice president responsible for EIB business in Finland. “As a first-time client, we are supporting Helen’s path to carbon neutrality and the transformation of Helsinki’s district heating systems”.
“This EIB financing is a major step in Helen’s path towards carbon-neutral energy production by 2030. We have made significant investments in the green transition over the past years and will continue to do so in the future. In addition to contributing to climate change mitigation, the transformation from fossil-based energy production to renewable sources increases our energy self-sufficiency, adding to the reliability of energy supply in general”, said Helen CFO Timo Rajala.
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