The Nordic Investment Bank (NIB) and Kemijoki Oy have signed a 15-year €50 million (US$54.7 million) loan to finance the company’s investment program from 2023 to 2027.
Kemijoki Oy’s investment program is for updating and maintaining hydropower assets and involves innovations such as the short-term energy storage HYCAP (HydroPower Capacity), as well as a new solution for ensuring fish migration at hydropower sites.
In the HYCAP project, the joint use of electricity storage and a power plant is being piloted, enabling the power plant to respond to short-term changes in electricity demand and production. The new electricity storage solution was introduced at the company’s 27 MW Kurkiaska hydropower plant in March 2023, and the intention is to build additional similar units in the future.
In addition, strengthening migratory fish stocks is a significant part of Kemijoki Oy’s strategic goals and biodiversity program. The company uses a new type of floating hydraulic fishway that enables fish to migrate to spawn past dams and other obstacles. Kemijoki Oy is in the permitting process concerning a fishway planned for the 134.1 MW Taivalkoski hydropower plant. The company has begun developing migration solutions for all its power plants located south of Rovaniemi, allowing migratory fish to migrate up- and downstream from the Bay of Bothnia to the Ounasjoki River.
“NIB is well positioned to provide the essential long-term financing for investments in hydropower. Notably, this 15-year loan supports Kemijoki Oy’s energy storage technology, which is an innovative solution that enhances Finland’s security of supply,” says André Küüsvek, NIB president and chief executive officer.
Alongside renovations and power lifts, Kemijoki Oy is continuously carrying out repair and development projects at its power plants to strengthen security of production and safety, according to a release.
Established in 1954, Kemijoki Oy’s main purpose is to produce electricity at cost for its shareholders. Kemijoki Oy operates 20 hydropower plants that produce about 4,000 GWh to 5,000 GWh of electricity annually. It also accounts for over 40% of the balancing power produced in Finland.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank finances private and public projects in and outside the member countries.
