Naftogaz, Swedfund sign memorandum to modernize CHPPs, develop renewable energy

Naftogaz, Swedfund sign memorandum to modernize CHPPs, develop renewable energy

Naftogaz of Ukraine NJSC and Swedfund International AB have signed a Memorandum of Understanding to establish cooperation in projects on the modernization of combined heat and power plants (CHPPs) and renewable energy development in Ukraine.

The relevant statement was made by Naftogaz Group’s press service, an Ukrinform correspondent reports.

“According to the document, Swedfund will provide grant financing through its Project Accelerator to conduct feasibility studies in order to promote corresponding priority projects,” the report states.

Swedfund Project Accelerator aims to strengthen the capacity to develop projects and carry out sustainable procurement in the process of Ukraine’s transition to a sustainable, carbon-neutral model of the energy system.

“Naftogaz Group includes a number of CHPPs that have been transferred to us by the state. They are in difficult condition and require modernization. Additionally, we are interested in the development of wind energy projects and transition from gas boilers at CHPPs, for example, to boilers running on green fuel. We are grateful to Swedfund for their willingness to support us in this path,” Naftogaz Group Board Chairman & CEO Oleksiy Chernyshov noted.

According to Swedfund Project Accelerator Director Stefan Falk, thanks to feasibility studies and capacity building efforts in Ukraine, the basis is being laid for more sustainable infrastructure projects in such areas as digitalization, water supply, waste disposal and energy. Supporting Naftogaz in the process of strengthening Ukraine’s energy security and the country’s long-term transition to carbon neutrality is an important part of this puzzle, Falk added.

Swedfund is a Swedish state-owned financial institution established in 1979. Its mission is to reduce poverty through sustainable investments in developing countries. Investments are made in the field of energy and climate, healthcare, and to cover small and medium-sized enterprises.

Swedfund is managed by the Swedish Enterprise and Innovation Ministry. Its operations are financed partly through capital injections, for which the Swedish Foreign Affairs Ministry is responsible, and through reflows from the own portfolio. In its history, Swedfund has made more than 240 investments in over 60 countries.

A reminder that earlier Naftogaz Group Board Chairman & CEO Oleksiy Chernyshov and State Oil Company of Azerbaijan Republic (SOCAR) President Rovshan Najaf met and discussed the prospects of cooperation between the two companies, namely in terms of gas storage services.

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