Finnfund to finance a power plant to reduce the emissions from a steelworks in Bosnia Herzegovina

Finnish development financier Finnfund has committed 1,8 million euros to a power plant in the city of Zenica, in Bosnia Herzegovina. The power plant will utilize the coke and blast furnace gases from the Arcelor Mittal’s steelworks as fuel and significantly reduce the air emissions of the power production. The plant will replace an old plant which utilizes coal as fuel.

The power plant, a joint venture owned by Finnfund, KPA Unicon, City of Zenica and ArcelorMittal, will be designed and delivered by a Finnish company KPA Unicon. The plant’s steam production capacity will be 150 t/h (37 bar, 420°C). The new plant will be operated according to EU environmental norms. The current boilers use coal as fuel, which is the main source of sulfur emissions from the plant. Once it is commissioned in 2020, the plant will produce all district heat for the city of Zenica as well as most of the energy needed in ArcelorMittal’s steelworks.

“As a development financier our mission is to foster clean energy production and circular economy. With KPA Unicon, City of Zenica and ArcelorMittal, we have created a model which aims to enhance the state of environment and the living environment of the people of Zenica as well as ensure energy production for the region’s needs”, emphasizes Tuomas Suurpää, Senior Investment Manager of Finnfund.

• KPA Unicon: World’s leading steel company ArcelorMittal invests in clean energy production in Bosnia Herzegovina – KPA Unicon, ArcelorMittal, Finnfund and City of Zenica jointly establish a power plant company (press release 5 October 2018)
• Nordea: Field visit to Bosnia: Zenica engulfed in smoke

For more information, please contact:
Kirsi Pere, Communications Manager, kirsi.pere(a)finnfund.fi, tel. +358 40 620 9767