BUSINESS

Mytilineos secures €125 mln in EIB credit for new plant

The head of the Mytilineos group, Evangelos Mytilineos

TAGS: Energy, Business, Finance

Athens-listed Mytilineos group has secured support from the European Investment Bank for the construction of a new power plant. The new 826-megawatt Agios Nikolaos power plant in Viotia, central Greece, will allow greater use of renewable energy resources in the country and enable the phasing out of lignite power production in Greece by 2023, as well as supply long-term energy demands.

The EIB will provide a 125-million-euro, eight-year loan to finance the construction and connection of the new €322-million natural gas plant alongside an existing energy generation center and industrial site.

“The EIB’s first-ever loan to Mytilineos is a recognition of the importance and vision of the Agios Nikolaos power plant towards a cleaner energy future for Greece. The new long-term EIB loan demonstrates how the EU Bank supports transformational investment in this country,” said Evangelos Mytilineos, chairman and CEO of Mytilineos.

“The EIB has unique technical and financial expertise in the energy sector and is a valuable partner to enable Greece to deliver on climate goals and move away from lignite use by 2028. We welcome the EIB’s recognition of the importance of supporting the energy transition in Greece and the new support for the Agios Nikolaos facility,” said Finance Minister Christos Staikouras, who is also one of the EIB governors.

“The EIB is supporting energy transition in Greece. As part of the EIB Energy Lending Policy agreed in 2019, we committed to supporting a pipeline of gas projects already under appraisal, before moving to renewables-only lending from 2021. That’s why EIB is pleased to provide €125 million to Mytilineos to support Greece’s energy security,” said Andrew McDowell, the EIB vice-president responsible for lending operations in Greece. “The EIB looks forward to working with Mytilineos and other leading energy project partners to support future clean energy investment across Greece.”

The EIB loan is guaranteed by the European Union under the Investment Plan for Europe. Once operational, the new plant will contribute to ensuring sufficient generation capacity to support the shut down of all – except one – lignite power plants in Greece by 2023. The new plant will be the most efficient gas power plant in Greece, using state-of-the-art CCGT technology. It will also help to diversify power generation in Greece.

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