KfW IPEX-Bank provides financing for "Delimara 4" combined-cycle power plant in Malta

KfW IPEX-Bank is part of an international banking consortium financing the new “Delimara 4” power plant project in Malta. Several hundred million euros are being invested in the gas and steam power plant.

KfW IPEX-Bank is supporting the project with a long-term loan, making up around 10 percent of the total investment. Siemens built the new CCPP as a turnkey project. The three SGT-800 gas turbines also manufactured by Siemens significantly improve the efficiency of Malta’s electricity generation thanks to their high efficiency and low emissions levels. KfW IPEX-Bank’s financing is helping to protect the world’s climate and environment. KfW IPEX-Bank was already involved in the construction phase of the project where it played a leading support role with a bridging loan of EUR 112 million.

The overall project consists of a 210 MW combined cycle power plant and a regasification plant with a floating gas holder for LNG (liquefied natural gas). The plant supplements the existing generation capacity at the Delimara site, which is near the city of Marsaxlokk in the south-east of the island. Enemalta, Malta’s only energy supplier, uses the power plant’s electricity to supply the island. The new CCPP went into operation in summer 2017.

Key project for Malta’s energy supply

The Republic of Malta wants to switch its energy supply from oil to gas in order to reduce emissions and comply with EU environmental requirements while maintaining base load supply. The new CCPP and LNG regasification plant with floating gas storage is now the primary source of electricity for Malta. Approximately 740 MW on-demand generation capacity is needed for the island of 440,000 inhabitants. The new power plant with its capacity of 360 MW, directly and indirectly, covers almost 50% of this through the Delimara 4 power plant (generating 210 MW) and gas deliveries to the neighbouring Delimara 3 (generating 150 MW).

LNG safeguards natural gas supplies for the Delimara power plant site

LNG safeguards the gas supply for the new plant. Because of its compact form, it is economical to transport and store and can thus help secure supplies in countries that do not have their own gas reserves. In the LNG plant in Malta, the LNG is stored in a floating gas holder (floating storage unit which is a converted LNG tanker), which is firmly anchored at an adjacent plant’s landing stage. The LNG is converted into natural gas in the regasification plant. This natural gas is used as fuel in both the new Delimara 4 power plant and the existing 150 MW Delimara 3 power plant.

Original source: KfW
Published on 21 December 2017