A 140 MW biomass power plant is to be built in Finland with $23.6m funding from the Nordic Investment Bank.

The plant in Vaasa will be built by utility Vaskiluodon Voima – jointly owned by jointly owned by EPV Energy and Pohjolan Voima – and is part of Finland’s drive to wean itself off its reliance on coal fired power generation.

The biomass facility will be connected to an existing plant and will substitute coal with peat and forest residues and biomaterials such as reed.

Last month, US analysis firm Pike Research estimated that worldwide biomass power generation capacity will reach 86 GW this year from 2011’s 58 GW, marking a total investment of $104bn.

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