- EIB lends utility owned by Austrian city of Linz €200 million to integrate energy and water systems.
- LINZ AG to use loan for operational upgrades benefitting around 400,000 residents.
- Financing to bring environmental gains and strengthen urban resilience.
The European Investment Bank (EIB) is lending LINZ AG, the utility company of the Austrian city of the same name, €200 million to integrate energy, water and wastewater networks into a single system that will be greener and more efficient. The project will reduce the carbon footprint of Austria’s third-largest city and improve services for around 400,000 people as well as numerous businesses in the Linz area.
City-owned LINZ plans to link district heating, district cooling and water management to reduce emissions and streamline operations. The project, which is due to be completed by 2029 advances European Union goals to fight climate change, promote sustainable urban development and upgrade municipal services.
“What makes this project particularly compelling is its integrated design: it connects energy and water systems to unlock efficiencies that would not be possible in isolation,” said EIB Vice-President Karl Nehammer.“This approach highlights the importance of integrated planning for future-proof infrastructure. Linz is setting a benchmark for how the green transition can be delivered in a smart, economically sound way.”
“LINZ AG is supporting the Upper Austrian capital of Linz on its path to climate neutrality and has actively taken on the associated challenges. I am very pleased about the provision of €200 million for the implementation of highly innovative future projects by LINZ AG. The commitment of the European Investment Bank supports and underlines the importance of our ambitious plans for climate-neutral energy generation in Linz and for the sustainable protection of our living environment. Around 400,000 people and numerous businesses in the region rely on the services provided by LINZ AG every day. Our goal is to offer these services – from drinking water and energy supply to waste and wastewater management – as affordably, safely and sustainably as possible, today as well as for future generations,” said Erich Haider, CEO of LINZ AG.
The project will capture and reuse waste heat through two new district heating recovery units with heat pumps at a waste incineration and a biomass plant. At the same time, a new district cooling centre and network expansion will address growing cooling demand, supported by a multi-utility tunnel.
In parallel, targeted upgrades throughout the water cycle – from production and distribution to wastewater collection and treatment – will modernise essential services and ensure long-term reliability and compliance with EU standards.
The project is implemented under the REPowerEU programme, which aims to end Europe’s dependence on fossil fuels, accelerate the expansion of renewable energy, and provide targeted support to the public sector in the energy transition.
Background information
EIB Group
The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of 12 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital).
Photos of the EIB Group's spokespeople and headquarters, logo files and video B-roll for media use are available here.
