Finnish process technology, automation, and services provider Valmet has signed a €175 million loan agreement with the European Investment Bank (EIB), according to an announcement made on Wednesday. The loan will finance Valmet's research and development (R&D) activities from 2023 to 2026, focusing on technologies that replace fossil fuels with renewable sources.
The financing is part of the EIB's dedicated package of support to REPowerEU, an EU plan aiming to eliminate dependence on fossil fuel imports. The loan is expected to enhance the resource and energy efficiency of Valmet's technology, promote the use of recyclable raw materials, and improve the sustainability of Valmet's operations.
Valmet's Vice President of R&D, Janne Pynnönen, expressed satisfaction with the agreement, stating it would improve Valmet's readiness to support the green transition in customer industries. The company spent €95 million on R&D in 2022 and boasts 28 research and development centers globally, with approximately 1,300 protected inventions.
The EIB, owned by EU Member States, adopted a Climate Bank Roadmap aiming to support €1 trillion of climate action and environmental sustainability investments by 2030. As part of this roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since 2021.
Valmet is a global developer and supplier for the pulp, paper, and energy industries. In 2022, it merged with flow control company Neles and reported net sales of approximately €5.1 billion.
In other related news from Wednesday, renewable developers in Spain have secured over $3.6 billion in loans from the EIB since 2022. The EIB's loan guarantee program, part of the REPowerEU initiative, is bolstering the lending capacity of the European Union's leading financial institution. Industry leaders like Iberdrola (OTC: IBDRY ) and Endesa are leveraging these loan capital opportunities to expand their portfolios. Solaria, another beneficiary, entered into a $1.8 billion loan framework with the EIB to construct approximately 120 photovoltaic power plants, primarily in Spain.
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