New woodchip boiler house opens in Riga, significantly reduces dependence on fossil fuels

A green loan from SEB banka totalling EUR 22 million completes the construction of a woodchip-fired boiler house in Riga. The biofuel boiler house developed by SIA “Rīgas BioEnerģija” with a heat generation capacity of up to 48 megawatts “will significantly increase the share of renewable energy sources in heat generation in Riga and reduce dependence on fossil fuels. 

“One of the green loans granted by SEB banka last year has now been implemented. The bank’s terms and conditions for such projects are particularly attractive, as we want to promote the principles of sustainability in various areas of life. In addition, getting such a loan is a strong signal of a company's commitment to sustainability. For this reason, demand for green loans is increasing significantly. Last year, the loan portfolio in the large company segment almost tripled compared to 2022. At the Baltic level, the amount of green loans issued to companies amounts to over EUR 1 billion. A woodchip-fuelled boiler house is a double win in terms of sustainability - it enables a significant reduction in the use of fossil resources in thermal energy generation and also develops the Latvian economy as we use our energy resources,” comments Ints Krasts, a member of the Board of SEB banka, on the importance of the project.

The biofuel boiler house of SIA “Rīgas BioEnerģija” is located at Rencēnu iela 30 in Riga. The modern and powerful boiler house will significantly increase the share of renewable energy sources in heat generation in Riga. The project is expected to increase the share of renewable energy sources by 7%, reaching 30% of heat generation from biofuels on the right bank of the Daugava River in Riga.

Reducing dependence on fossil fuels enables heat producers to forecast production costs more reliably and offer a competitive price on the thermal energy market. The biofuel boiler house will produce around 253,000 megawatt hours of heat per year, which is equivalent to heating 600 apartment buildings for a year.

SIA “Rīgas BioEnerģija” is wholly owned by the heating supply company AS “Rīgas Siltums”. AS "Rīgas Siltums" is one of the key suppliers of heat energy in Riga. The company generates, transmits and sells thermal energy.