Nordisk Renting develops an environment friendly energy solution in co-operation with the municipality of Vansbro

Nordisk Renting AB has reached an agreement with the municipality of Vansbro regarding the further development of Vansbro’s biofuelled energy plant, owned by Nordisk Renting since a few years back. During the first phase, Nordisk Renting via its fully owned subsidiary Svenskt Fastighetskapital AB will invest approximately SEK 50m in a new district heating boiler in co-operation with the municipality.

The capacity of the current boiler is too low to meet the demand for district heating in Vansbro and, on very cold days, the energy production has to be complemented by oilfired heating. The new boiler will guarantee the municipality’s energy supply and, at the same time, considerably improve environmental conditions as the entire energy supply will be produced from environmentally friendly biofuels. ”Since a few years back, the local authority of Vansbro has co-operated closely with Nordisk Renting and Svenskt Fastighetskapital, which owns both the energy plant in point as well as Bäckaskog’s elderly care”, says Gunnar Magnusson, municipal commissioner in Vansbro. ”This is a good example of how Nordisk Renting together with the municipality develop their properties and plants to suit long term needs and conditions.” The municipality of Vansbro rents the energy plant via a long-term leasing agreement. The authority has also a call option with the opportunity to acquire the plant to a set price, which means that they have long-term control of the plant. ”We are very pleased to further develop our co-operation with Vansbro local authority, says Reinhold Geijer, CEO of Nordisk Renting AB. ”Many local authorities put too much capital into properties and fixed assets, which implies a passive use of capital. This long-term renting solution in combination with drive and flexibility allows Vansbro municipality to further develop their plant and to increase their production of environment friendly district heating. At the same time they can focus their financial resources on other prioritised municipal operations.” In a later phase, Nordisk Renting intends to invest an additional SEK 40m in a turbine for electricity production as well as complementing the property with a plant for pellets production. The production of pellets will generate additional energy and the idea is to sell the pellets on the market. For further information please contact: Reinhold Geijer, President & CEO of Nordisk Renting AB, tel +46 (0)8 506 198 01 Gunnar Magnusson, Municipal Commissioner in Vansbro, tel + 46 (0)281 75 001