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2009-06-05 00:00:00
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| Project name: |
Saturn Biomass |
| Country: |
Poland |
| Project number: |
40287 |
| Business sector: |
Power and Energy |
| Public/Private: |
Private |
| Environmental category: |
B |
| Board date: |
28 July 2009 |
| Status: |
Passed concept review, Pending final review |
Date PSD disclosed:
Date PSD updated: |
29 May 2009
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The EBRD is considering a loan of €30 million for construction of the biomass facility and the modernisation of the existing combined heat and power plant (the “CHP”) owned by Saturn Management, a project company set up to supply heat and energy to Mondi Swiecie, one of the largest European paper producers.
Saturn Management has already in the past concluded the initial investments, financed by two other banks on a project finance basis, and the CHP is fully operational. Currently, Saturn Management intends to realise two further projects in order to extend the operation of CHP:
- conversion of the existing coal boiler into a biomass boiler with 80MWt capacity, and
- large repairs, modernizations and new investments in the existing installations, together the “Project”.
The Project will support the first large scale biomass fired power plant in Poland owned by a local investor with a strategy for expanding biomass operations. As such, the Project has the potential to lead to important demonstration effects of large scale biomass energy which could attract new developers and investors in the renewable energy sector. In fact, the number of biomass projects so far completed in Poland is limited and the renewable energy sector still represents a very small share of overall Polish power generation.
Saturn Management Limited Liability Partnership - a special purpose vehicle, incorporated and fully owned by Polish Energy Partners S.A. for the purpose of implementation and operation of the CHP in Swiecie.
€30 million long-term debt financing package alongside other commercial lenders.
The project has been screened B (2008) requiring an environmental and social due diligence in line with the Bank’s Environmental and Social Policy prior to Final Review. The ESDD will focus on the existing CHP assets and whether the project is fully structured to meet Polish and EU environmental standards as well as ascertain the fuel supply cycle and whether the biomass is sourced from sustainable sources. Given that the Mondi Swiece pulp and paper plant is the operator of the CHP, the ESDD will also review the corporate management system of Mondi Swiecie and assess the Company’s ability to fully implement the Bank’s Performance Requirements. Based on the ESDD, the Bank will agree with the Company an Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan (SEP). |
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