The International Finance Corporation (IFC) will assist the leading company in the paper industry sector in Serbia with a new investment to build the first large combined heat and power (CHP) plant using biomass for the simultaneous production of heat and electricity, announced the IFC.
“The financing package provided by IFC for Drenik ND d.o.o, the largest producer of paper goods in Serbia, consists of a direct loan of 60 million euros and a 46 million euros loan from the joint creditor fund managed by IFC,” stated the International Finance Corporation, a member of the World Bank Group.
This project, as stated in the announcement, will promote energy production from renewable sources and help the city of Belgrade, facing air quality challenges, to reduce greenhouse gas emissions.
The investment is intended for the construction of a biomass-based cogeneration plant with a capacity of approximately eight megawatts for electricity production and 16 tons per hour for steam production.
“The new plant will enable the production facility in Serbia to use biomass instead of electricity from the grid and reduce natural gas consumption. Additionally, IFC will provide advisory support to help Drenik ND enhance corporate governance and elevate environmental and social management systems (through action plan implementation) and improve insurance practices,” stated IFC.
Nikola Markije, Regional Manager for the Western Balkans at IFC, emphasized that promoting sustainable and inclusive growth is at the core of IFC’s global strategy.
“Our investment aligns with this strategy as it encourages a key player in the region to produce its own ‘clean’ and ‘green’ energy, improve environmental standards, strengthen energy efficiency, and reduce harmful emissions. Therefore, the investment contributes to Serbia’s transition to a low-carbon, climate-resilient economy,” stated Markije.
The owner of Drenik ND company, Igor Perić, emphasized that the technologies used for generating energy from biomass offer competitive solutions for the production of both electrical and thermal energy, which are also efficient in reducing carbon emissions.
The project, as stated in the announcement, aligns with the World Bank’s Partnership Framework with Serbia for the period from 2022 to 2026, which envisions support for greener and more resilient economic growth. IFC has invested $2.9 billion in Serbia since 2001, with current investments totaling $351.7 million, as highlighted.
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