- The loan will help finance Valmet’s research, development and innovation efforts to replace fossil fuels with renewables.
- The financing will contribute to the REPowerEU plan to reduce Europe’s dependence on fossil fuels.
- This is the fourth agreement between the EU bank and Valmet since 2004.
The European Investment Bank (EIB) has signed a €175 million loan agreement with Valmet, a leading Finnish developer and supplier of technologies, automation and services for the pulp, paper and energy industries. The loan will support the company’s research, development and innovation activities.
The financing aims to make Valmet’s use of resources and energy more efficient and to improve the performance of its technologies. It will also promote the use of recyclable raw materials, making its operations more sustainable, and will boost economic growth and employment. The investment is part of the EIB’s package of support for REPowerEU, the plan to reduce the European Union’s dependence on fossil fuel imports. The project will be implemented primarily in Finland and Sweden between 2023 and 2026.
“We are delighted to be cooperating with Valmet in developing technologies to make its use of raw materials, water and energy more efficient, reduce greenhouse gas emissions and expand the use of renewable raw materials,” said EIB Vice-President Thomas Östros. “The financing will help replace fossil fuels with renewable fuels, which is one of the key targets of REPowerEU and one of the most impactful ways to deal with the current energy crisis and mitigate the effects of climate change.”
“The aim of Valmet’s research and development work is to create new technologies, products and services that address customer needs and help respond to some of the most important global megatrends: enhancing the efficiency of raw materials, water and energy, promoting the use of renewable raw materials and reducing emissions. We’re happy about this loan agreement as it improves Valmet’s readiness to support the green transition in Valmet’s customer industries,” says Janne Pynnönen, Vice President of R&D at Valmet.
The EIB first supported Valmet back in 2004. Today’s agreement is the fourth financing deal between Valmet and the EIB.
Background information
About the European Investment Bank
The EIB is the long-term lending institution of the European Union and is owned by the EU Member States. The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to devote more than half of EIB finance to climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.
EIB and energy security — REPowerEU
In 2022, the EIB Group signed more than €17 billion in new financing to support the energy transition in the European Union. This record figure confirms the EU bank’s commitment to ensuring access to sustainable energy at a time of great uncertainty. Our investments are helping Europe weather the crisis triggered by the abrupt cut in gas supplies in the aftermath of Russia’s brutal and unjustified attack against Ukraine.
In May 2022, the European Commission launched the REPowerEU plan to rapidly reduce dependence on Russian fossil fuels and fast-forward the green transition. The EIB agreed to support REPowerEU by raising the Group’s clean energy financing volumes to unprecedented levels between 2022 and 2027.
The EIB has earmarked €45 billion for projects aligned with REPowerEU. These funds come on top of the EIB’s already substantial support for the energy sector. Find out more about the EIB’s support for energy projects here and the latest projects we have financed here.
About Valmet
Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. With our automation systems and flow control solutions we serve an even wider base of process industries. Our 17 500 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day.
The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. In 2022, a major milestone was achieved when the flow control company Neles was merged into Valmet. Valmet’s net sales in 2022 were approximately €5.1 billion.
Valmet’s shares are listed on the Nasdaq Helsinki and the head office is in Espoo, Finland.