SEB Banka Grants Financing for Construction of Modular Wood Chip Boiler House

SEB banka has granted financing in the amount of 1.820 million euros for the construction of the modular wood chip boiler house of JSC “Olaines vedas un siltums” with the aim of reducing dependence on natural gas fuel.

In order to achieve fuel diversification and the use of renewable energy resources in the production of thermal energy, JSC “Olaines udes un siltums” plans to implement two boiler house construction projects.

“As part of one project, it is planned to build a water boiler fueled with wood chips with a capacity of 8MW and a flue gas condenser of 2MW in the town of Olaine, and the financing of the Cohesion Fund will be attracted for the realization of this project. On the other hand, within the framework of the second project, a modular – container-type chip-fired boiler house with a capacity of up to 3MW will be installed. It will ensure the preparation of hot water in the summer and will provide an opportunity to adjust the capacity to the required consumption, as the future is planned to save the consumed thermal energy. For the implementation of this project, a cooperation agreement has been concluded with SEB banka for the loan of financial resources,” says Mārcis Mazurs, chairman of the board of JSC “Olaines udes un siltums”.

“The rapid increase in energy resource prices has forced many to review cost positions and look for ways to organize operations as efficiently as possible. We are pleased to support well-thought-out investments in promoting energy efficiency, which will benefit the wider society by using wood chips for heating, which is a renewable resource,” says SEB banka’s Head of Small and Medium Enterprises Financing Department Āirts Priede.

JSC “Olaines udes un siltums” has so far also very actively used the state support program for the energy efficiency of multi-apartment residential buildings and the funding granted to it by European Union funds – by the end of 2023, 28 apartment houses will have been renovated in the city of Olaines. The company also plans to take an active part in the new multi-apartment energy efficiency improvement program, which means that in the future there will be even more renovated multi-apartment houses in the city, the average heat energy savings after renovation in the heating season is about 50%.

Renovation of houses in general will reduce the amount of heat energy consumed in the future, thus saving both natural resources and residents’ money.

“A large amount of financing is available in the new multi-apartment building energy efficiency program, but in general, interest from apartment owners in Latvia is low. The parties involved explain this with high inflation, including the increase in construction and heating costs, and residents’ concerns about paying additional payments for loans under the influence of rising interest rates. At the same time, this program provides an opportunity to increase property value and reduce heating costs by at least 40%. Therefore, I invite you to look at the long term and take action to improve the quality of life, reduce costs and improve the value of your property,” adds Đirts Priede.