Finnish regional utility Lahti Energia Oy has secured a EUR75m ($84.4m) loan from the European Investment Bank (EIB) Finland flagfor the construction of a biomass-fired combined-heat-and-power plant.

The new plant, 100km north of Helsinki will run entirely on forest biomass. It is expected to produce approximately 50 MW of electricity and 150 MW of district heat for the Lahti area.

Initially, Lahti Energia plans to install only the heat production equipment. Once the electricity markets recover, the plant will be easily converted to a CHP one using existing facilities, the developer said.

Expected to be operational in 2019, the biomass-fired plant will replace the Kymijarvi I thermal power plant.