EIB - European Investment Bank

04/25/2024 | Press release | Distributed by Public on 04/25/2024 00:04

Finland: EIB makes loan to replace Helsinki’s fossil-based heating plants with renewable energy

  • EIB loan for two new renewable-energy projects in district heating sector in Helsinki.
  • Financing contributes to the REPowerEU plan to reduce Europe's dependence on fossil fuels.
  • Support will help energy company Helen achieve carbon neutrality by 2030.

The European Investment Bank (EIB) has signed a €150 million loan agreement with Helen Ltd, a leading Finnish energy company wholly owned by the City of Helsinki, to finance two new renewable-energy projects in the district heating sector. The total investment amounts to €209 million, with the EIB contributing 72% of the total.

The financing is to install a new heat pump plant and convert fuel use from coal to biomass pellets in one of Helen´s heating plants in Helsinki. As one of the largest energy companies in Finland, Helen serves more than half a million customers, providing electricity, district heating and cooling.

Helen aims to achieve 100% carbon neutrality in its energy production by 2030. The company is making significant investments in a sustainable and modern energy system and building capacity that replaces more than 2,000 MW of installed capacity of fossil energy production by 2025.

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.

"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," says EIB Vice-President Thomas Östros, 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."

"EIB's 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 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," says Helen's CFO Timo Rajala.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. In 2023 the Bank's investments included more than €21 billion as part of REPowerEU, an initiative designed to reduce Europe's dependence on fossil fuels and accelerate the green transition.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group's annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In 2023, the EIB Group pledged almost €1 billion in financing for new projects in Finland, supporting investment worth nearly €4.4 billion. This is part of the nearly €8 billion of EIB Group financing provided in the country over the past five years.

Helen Ltd

Helen Ltd helps to make everyday life a little easier for over 560,000 customers in Finland. In addition to heat, cooling and electricity, we offer solutions for regional and renewable energy and electric transport. We are developing a smarter, carbon-neutral energy system that enables everyone to produce, use and save energy with respect for the environment. We aim to achieve 100% carbon neutrality in our energy production by 2030. Let's join forces and turn the opportunities of a new energy era into reality.