EBRD invests in biomass in Bosnia and Herzegovina

The European Bank for Reconstruction and Development (EBRD) is to provide a loan of up to €7 million for the construction of a new biomass boiler plant in Prijedor, a municipality in the north west of Bosnia and Herzegovina. This will be EBRD's first investment in renewable energy in the region.

The operator of the plant is Toplana AD Prijedor, the majority of which is owned by local authorities. The new boiler will replace oil and be fuelled by woodchips – a sustainable and cheaper alternative.

The new plant will help Bosnia and Herzegovina meet its 2020 renewable energy targets. Set out in the Energy Community Treaty for South Eastern Europe, the country is working to slash its CO2 emissions by 80% within the next five years.

The project will also be supported by grant funding of up to €2 million from the Swedish International Development Cooperation Agency (SIDA).

'This project will not only change the source of district heating for the citizens of Prijedor from polluting fuel oil to cleaner, sustainable and renewable energy, but it will also deliver real cost savings to the city and its consumers,' says Ian Brown, head of the EBRD office in Bosnia and Herzegovina.