A consortium, comprising Germany’s Ferrostaal and Austria’s Christof Group, has inked a deal to build a CHP plant in Zenica, Bosnia.

KTG Zenica, a project company owned by Switzerland’s KTG with a 75% share and the municipality of Zenica with a 25% share, awarded the project to the Ferrostaal-Christof consortium on a full EPC basis.

The gas-fired plant will have an electrical capacity of 240 MW and a thermal capacity of 170 MWth, as well as a high degree of flexibility to cover the fluctuating power demand in Bosnia and Herzegovina.

It will consist of two gas turbines and one steam turbine allowing variable operation in both open and combined-cycle modes, with and without district heating.

Ferrostaal says the plant will cost in excess of EUR250 million (US$351 million) and will cover Zenica´s demand for a reliable source of thermal power for district heating purposes.

The plant will be built in phases with total installed capacity scheduled to come onstream in mid 2014.

The gas heating plant will replace the current consumption of about 700 tonnes of coal per day during the heating season.

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