15:36 16.02.2023

Denmark supports Ukraine's critical heating infrastructure with EUR 4.5 mln via NEFCO

2 min read

Denmark, through the Nordic Environment Finance Corporation (NEFCO), has sent about EUR 4.5 million in additional financing, ensuring the supply of new mobile container boiler houses to Ukraine, the press service of NEFCO reported.

"Denmark and Ukraine are very close partners, and it is good to see that our partnership can also support critical heating infrastructure in Eastern Ukraine. Keeping heating on is of crucial importance for Ukraine's resilience and fighting power. In addition, it has a positive impact on Ukraine's CO2 footprint," comments Ole Egberg Mikkelsen, Denmark's Ambassador to Ukraine.

In particular, according to him, the transferred 20 gas boilers, with a capacity of 39 megawatts, will ensure district heating supply to over 180,000 people, which is 80% of the total population of the city where they are to be installed. Some 10% of the Ukrainians who will benefit are internally displaced. The funded project will cover some 30-40% of the citizens heat demand (the settlement is not named for security reasons).

Measures include assembling and installing the new boilers, laying new pipes, preventative steps to help keep the heat supply system from freezing during the winter and system maintenance to ensure continued, reliable operation.

The new boilers will make heat production more efficient, and thereby reduce gas consumption by some 1.70 Mm3 annually. This will result in approx. 3,400 tonnes of annual CO2 reductions.

"We are very happy to be able to continue our good cooperation with Danida Sustainable Infrastructure Finance Programme on this and other projects in Ukraine to support maintaining and greening of critical infrastructure. The importance of this support from Denmark cannot be understated and is critically needed during these extremely challenging times," comments Bo Nyhus, Investment Director at NEFCO.

Since 2021, NEFCO has managed grant funds for the Danish Danida Sustainable Infrastructure Finance (DSIF) Programme, financed by the Ministry of Foreign Affairs of Denmark. Presently, three projects are under implementation in spite of the on-going war. The aim is to add new projects and swiftly build back better and greener during the coming years.

NEFCO is an international financial institution funding the expansion of Nordic green solutions in global markets. It was founded in 1990 by Denmark, Finland, Iceland, Norway and Sweden.

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