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Ukraine's Starobeshevo power plant modernises with EBRD finance
One of Ukraine's four state-owned thermal power generators, Donbasenergo Genco, is to receive a US$ 113 million (ECU 93 million) loan from the European Bank for Reconstruction and Development (EBRD) to finance the replacement of an old coal-fired boiler with a more efficient and less polluting unit.
"This is a priority investment which will advance Ukraine's restructuring of its energy sector and the ultimate closure of the Chernobyl nuclear power station as agreed between Ukraine and the G-7 countries," said Ananda Covindassamy, Director of the EBRD's Energy Team. "By modernising Starobeshevo, the EBRD is contributing to a significant improvement in energy efficiency. The new boiler will use a waste product, replacing expensive local coal and imported gas and fuel oil. This means that Ukraine is able to use its locally produced coal more effectively, ultimately reducing its energy usage and gas and oil imports."
The EBRD loan will have a substantial transition impact as Donbasenergo is the first of the generators to be commercialised. The 210 megawatt new boiler costs US$ 163 million, of which the EBRD's loan accounts for 69 per cent. A further US$ 21 million will be co-financed by export credit agencies (ECAs) under the EBRD's Export Credit Loan Arrangement Technique (ECLAT). This will be the fourth project in which ECA co-financing is being arranged through ECLAT. Donbasenergo is financing the balance of US$ 29 million from its own resources.
The new boiler will use circulating fluidised bed boiler (CFB) technology, which can burn low-quality coal and schlamm (residue of coal washing) efficiently and cleanly. These are the only available local fuels. The boiler will be designed to meet Ukrainian and European Union standards for air emissions.
Donbasenergo was established in June 1995 under the wholesale reorganisation of the Ukrainian power sector. It has an installed generating capacity of 8,170 megawatts, which is equal to 15 per cent of the total installed capacity in Ukraine.
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