PORTUCEL ENERGY

The project comprises the design, construction and operation of four energy facilities -a natural gas CHP, two biomass plants and a steam turbine- at three different pulp and paper production facilities owned by the promoter in Portugal (Setubal, Cacia and Figueira de Foz). All four investments,are located in pulp and paper production sites owned by the promoter. The energy production will be either consumed by the pulp and paper facilities or sold to the public grid. The biomass supply for Cacia and Setubal consists mainly of wood residues coming from forestry operations run by the promoter.

The project’s economic interest is linked to its contribution to EU and national renewable energy and climate change policies, and to increasing energy efficiency (co-generation of power and heat). Further, the project sites of Cacia and Figueira da Foz, accounting for approximately one third of the total investment, are located in convergence regions. The project contributes to the priority energy lending objectives related to renewable energy and energy efficiency.

By virtue of their technical characteristics all the projects fall under Annex II of the EIA Directive, therefore the need for EIA is established by the competent authority according to the criteria set out in the Directive and in the national law. According to national law, EIA is required only for the natural gas CHP in Setubal. The promoter has carried out EIA and the foreseen environmental impacts are limited. Full review of the EIA will be performed by the Bank during appraisal.

The promoter is not bound to public procurement procedures. During the appraisal, the Bank will verify that suitable procurement procedures in line with the Bank’s standards have in any case been adopted.