The European Investment Bank (EIB) has signed an agreement with Teplarny Brno, a utility company in the Czech Republic, for a €75 million ($82 million) loan to co-finance the upgrade of the heat generation and distribution system in the City of Brno.
The project includes construction of a combined heat and power biomass unit (CHP) fueled by wood chips, which will contribute to the reduction of greenhouse-gas emissions and pollution.
Teplarny Brno generates and supplies heating to the city of Brno as well as electricity to the national grid. In addition to the construction of a biomass unit, the company will use EIB’s financing for the modernization of 5 kilometers (3 miles) of pipelines and the construction of 5.5 kilometers (3.4 miles) of new ones, as well as the modernization of 16 transfer stations and construction of 105 new ones. The upgraded infrastructure will lower network losses and allow the connection of new customers to the grid.