ArcelorMittal / Toplana Zenica d.o.o. Zenica

Region and country of operations: Bosnia and Herzegovina
Jurisdiction of registration: Bosnia and Hertzegovina
Business sector: Power generation

Date of agreement (month/year): 10/2018
Finnfund’s financing: EUR 1,800,000
Share of Finnfund’s financing: 3.1%
Instrument: Equity
Size of project/financing: EUR 58,000,000
Environmental and social category: B

Project description

Finnfund has invested in project company Toplana Zenica d.o.o. Zenica. Steel manufacturer ArcelorMittal Zenica d.o.o. in Bosnia and Herzegovina, city of Zenica, KPA Unicon Oy and Finnfund will form a joint venture project company Toplana Zenica to modernize and upgrade the power generation unit of ArcelorMittal Zenica so that the upgraded unit will be fueled with by-product gases from ArcelorMittal Zenica’s steel manufacturing.

Toplana Zenica will sell district heat to the city of Zenica, steam to ArcelorMittal Zenica and electricity to third parties. KPA Unicon is also be the major equipment provider.

Main development impact

ArcelorMittal Zenica is one of the most important companies from the perspective of country’s economy representing a signicant contribution to BIH GDP. The power generation is crucial for the operations of ArcelorMittal Zenica and therefore, to its societal and economical effects. New power generation will improve ArcelorMittal Zenica’s financial position by increasing the reliability of power generation and by replacing coal with the by-product gases of steel manufacturing.

The main air emissions causing bad air quality in Zenica are sulphur and particle emissions. The change in fuels will significantly decrease sulphur and particle emissions coming from the ArcelorMittal Zenica power operations. New power generation will also decrease greenhouse gases.

More information

Finnfund to finance a power plant to reduce the emissions from a steelworks in Bosnia Herzegovina