The European Investment Bank (EIB) is lending EUR25M (US$30M) to upgrade two existing hydroelectric power plants on the Kemijoki river in Lapland, northern Finland.

The loan will co-finance the modernisation of the Permantokoski and Ossauskoski hydro power plants involving a capacity increase of around 30% to 140MW.

The borrower and promoter is Kemijoki Corporation, a company established in 1954 to tap the hydro power potential of the Kemijoki river catchment. It owns 20 Finnish plants totalling 1008MW, 34% of Finland’s hydropower capacity.

The project is in line with EU renewable energy policies and will help Finland to meet its commitments with respect to greenhouse gas emission reductions.