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    Reference: 20230400
    Release date: 17 October 2023

    Promoter – Financial Intermediary




    The project concerns the construction and operation of a high-efficiency recovery boiler at the Setúbal Industrial Complex of the promoter. This investment is a major step of its decarbonisation plan with significant energy efficiency measures and greenhouse gas (GHG) emissions reduction.

    Additionality and Impact

    By replacing the obsolete recovery boiler (RB) with a new and highly efficient RB, the project improves energy efficiency and air quality in the neighborhood of the existing integrated pulp and paper mill in Setubal, Portugal. Thereby, the project contributes to the EU Green Deal and is aligned with the Bank's Climate Action and Environmental Sustainability objectives, the EU Forest and Bioeconomy strategies, as well as with EU Zero Pollution Action Plan. The project addresses sub-optimal investment situations in the pulp and paper industry by enabling sustainable, recyclable and renewable pulp and paper production with BAT standards. In addition, the project will reduce greenhouse gas emissions through enhanced energy efficiency thereby decreasing the effects of negative externalities of the pulp and paper industry. . The Bank's contribution to the project is supported by a combination of a sizable loan and long tenor, required to successfully implement this type of investments. Furthermore, it contributes to diversify sources of financing from traditional commercial banking as well as capital markets.


    The aim is to improve resource efficiency of the industrial facility, reduce odorous emissions (sulphur) to the air and GHG emissions. This will be possible through enhanced renewable energy generation and energy efficiency measures, by recovering and using more efficiently renewable fuels from processing (black liquor and other renewable by-products) in a new recovery boiler, and by enabling the use of hydrogen and natural gas in the biomass boiler to substitute fossil fuel oils.


    Proposed EIB finance (Approximate amount)

    EUR 115 million

    Total cost (Approximate amount)

    EUR 155 million

    Environmental aspects

    The project falls under the scope of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU and the environmental permits were last updated in 2023 and will be revised and amended accordingly by the authorities to reflect the upgrades of the CIS facility.


    The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the EIB would require the promoter to apply relevant applicable EU procurement rules.


    Signed - 21/12/2023

    Under appraisal
    10 November 2023
    21 December 2023


    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Portugal Industry