Swedish Venture Wins EUR35Mln Loan For Wind Farm Project

The Nordic Investment Bank (NIB) said Friday that it had signed a new loan agreement totalling EUR35 million with Swedish Gabrielsberget Syd Vind AB to finance the construction of a new wind farm in Vasterbotten in northern Sweden.

The bank said that the 16.5-year-maturity loan will be used to finance the construction of the new wind farm which will have a total capacity of 46 MW.

The planned wind farm project will consist of 20 wind turbines and commercial operations are expected to be up and running by July 2011.

"Replacing fossil fuel based energy production with renewable energy sources such as wind helps reduce CO2 emissions.  It is NIB's mission to enhance the environment by lending to projects such as this wind farm," NIB's President and Chief Executive Officer, Johnny Akerholm, said in a statement.

The Gabrielsberget Syd Vind AB is 50%-owned by German Enercon Independent Power Producer GmbH and 50% by Swedish Svevind Holding AB, Sweden. 

Enercon is the fourth-largest wind energy manufacturer in the world with over 17,000 wind turbines installed in over 30 countries.  Svevind is a privately-owned company which plans, develops, sells and operates land-based wind power projects of varying sizes.

The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries.  It provides long-term financing for energy, environmental, transport, logistics and communications projects among other services.

Author: Justin Cole, analyst.