ZAGREB (Croatia), September 15 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it is providing a 5.0 million euro ($6.9 million) loan to Croatian concern Agrokor to support the construction of a combined heat and power generation plant that will use biogas as primary fuel.
The proceeds of the EBRD loan will be used to purchase and install the biogas power plant, and sterilisation and water purification equipment, the EBRD said in a press release.
The project is expected to be completed by September 2012 and will be in full compliance with EU environmental regulations.
Located in Gradec, 40 kilometres outside the capital Zagreb, the plant will be fuelled by organic waste, by-products of Agrokor's food production process. It will have a generation capacity of 1.0 megawatts (MW) of electricity, which will be supplied to Croatia's power grid, and also a 1.0 MW of heat capacity.
The construction of the biogas facility in Gradec is the first step in Agrokor's strategic plans to develop similar projects, with a total generation capacity of up to 30 MW, the statement said.
The EBRD has a long-standing cooperation with the privately-held Agrokor, having previously supported a variety of the company's investments in Croatia and neighbouring countries. The biogas facility in Gradec is financed under the bank's Agribusiness Sustainable Investment Facility.
Since the beginning of its operations in Croatia, the bank has committed over 2.5 billion euro to the country's economy. The EBRD funds mobilised additional investment of 4.0 billion euro in various sectors of the Croatian economy.
($ = 0.7246 euro)