EBRD prepares sovereign guaranteed loan to Ukrnafta for cogeneration power plant project up to 250 MW
The European Bank for Reconstruction and Development (EBRD) has announced a project that envisages providing PJSC Ukrnafta with a sovereign guaranteed loan to finance the construction of a combined-cycle cogeneration power plant with an estimated total capacity of up to 250 MW.
According to the bank's information, this "Ukrnafta: Project II" is planned to be implemented in Dnipropetrovsk region of Ukraine.
In early February 2025, Ukrnafta said that, together with the EBRD, it plans to construct a modern combined-cycle cogeneration power plant capable of providing electricity and heat to the population, as well as generating steam for technological processes of industrial enterprises.
Earlier, in January, Chairman of the supervisory board of Ukrnafta Duncan Nightingale told Interfax-Ukraine the company is working on the implementation of projects to generate energy from its own gas with a total capacity of up to 370 MW.
Ukrnafta and the EBRD have already signed the first loan agreement for EUR 80 million under a state guarantee in early December 2024, which aims to supply and install gas-fired distributed power plants and cogeneration facilities in various regions of Ukraine.
In December 2024, the EBRD launched the procedures for the procurement of gas power plants within the loan and donor agreement with Ukrnafta. The first purchase was announced for the supply of gas-fired power plants and cogeneration units for three facilities with a total installed electrical capacity of about 70 MW, and the second – for the supply of power plants with gas engines in containers with a total capacity of about 56 MW. These are modular installations that can be moved depending on needs.
In addition, the EBRD loan will be co-financed by investment grants of EUR 9.5 million from the Netherlands and EUR 12.5 million from the United States, which will be channelled through the EBRD Special Fund, as well as by a technical support grant of EUR 1.8 million from other donors.
Ukrnafta, the largest oil producing company in Ukraine, is the operator of the national gas station network. In March 2024, the company entered the asset management of Glusco and operates a total of 547 gas stations, 462 of its own and 85 under management.