22.05.2013 – 13:56
KfW IPEX-Bank and LBBW finance modernisation of Israeli coal-fired power plants
Frankfurt am Main (ots)
- EUR 150 million loan for Israeli power supplier - Modernisation of six coal-fired power plants will reduce nitrogen oxides up to 92 per cent - German SME Babcock Noell GmbH to plan, deliver and commission flue gas denitrification plants
With a loan totalling around EUR 150 million KfW IPEX-Bank and Landesbank Baden-Württemberg (LBBW) are supporting the Israeli electricity supplier The Israel Electric Corporation LTD (IEC) with its extensive investment programme. Among others, the programme provides for the installation of state-of-the-art denitrification (DeNOx) plants in a total of six coal-fired power plant blocks. The Würzburg-based SME Babcock Noell GmbH will supply the environmental technology. The German-designed denitrifiction plants will be sized to reduce the power plants' current emissions of nitrogen oxides up to 92 per cent, (down to 24.4 ppmvd). In a first stage, the plants' emissions will be reduced by 83%, (down to 48.8 ppmvd) with the possibility of further reduction at a later stage, thereby meeting very strict standards, which are stricter than those applying within the European Union.
KfW IPEX-Bank and LBBW will each provide half of the loan, which will be secured with an export credit guarantee of the Federal Republic of Germany. The term of the financing is 12 years.
"This use of top-end technology financed by us will directly contribute to making Israel's conventional power generation more environmentally friendly. For the German exporter Babcock Noell the IEC order is also an important reference for other large corporate customers across the globe," said Markus Scheer, member of the Management Board of KfW IPEX-Bank.
"Supporting German SMEs in their foreign business activities is among the core competencies of LBB Group. We offer a number of export finance variations to meet different client needs. In this case, we - together with KfW IPEX-Bank - found an optimal solution for both IEC and Babcok Noell in the form of a long-term buyer credit", sais Joachim Landgraf, Global Head Export Finance at LBBW.
The German general contractor Babcock Noell, which is part of the Bilfinger Group, will plan, deliver and commission the new DeNOx plants. They are composed of catalytic systems including units for producing ammonia from urea as well as new induced draft fans.
The integrated state-owned power company IEC is responsible for the power supply of nearly the entire country - from energy generation to distribution and its sale to end-use customers. The ambitious investment programme provides for the modernisation of altogether six power plant blocks at two locations, one near the city of Hadera and the other near Aschkelon, both along Israel's Mediterranean coast.
About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium- and long-term lending to boost the export economy, develop economic and social infrastructure and support environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has around 590 employees and is represented in the key economic and financial centres around the globe.
Landesbank Baden-Württemberg (LBBW) is both a commercial bank and the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. With total assets of EUR 336 billion and around 11,600 employees (as of 31 December 2012), LBBW is one of the largest banks in Germany, and in its core market Baden-Württemberg it is by far the most important one. Its core activities are the private customer business and the business with corporate customers, in particular small and medium-sized enterprises, as well as savings banks. A further focus is placed on real-estate financing as well as the customer-oriented capital market business with banks, savings banks and institutional investors.
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: Thomas.Krick@kfw.de
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Original content of: KfW IPEX-Bank, transmitted by news aktuell