Pharmaceutical giant Teva plans to build a private US$70 million natural gas-fueled CHP plant at its Teva Tech plant at Ramat Hovav in the Negev desert in Israel.

Teva has already submitted an environmental impact statement for the electricity, with it then selling the surplus power to the Israel Electric Corporation.

The project would be the second private cogeneration plant in Ramat Hovav. Makteshim Agan Industries owns a $200 million 120 MW plant that was completed earlier this year.

The move is part of an Israeli government policy to encourage private power generation using cogeneration, which it believes is more efficient and environmentally friendly than regular power station

Teva informed the Israel’s Southern Regional Planning and Building Commission that the cogeneration type power station would generate 45 MW and would use diesel or fuel oil as back-ups.

The power station will meet the factory’s needs, around 20-25 MW.

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