Finnish energy group Fortum is to build a new combined heat and power plant in the city of Pärnu in Estonia, planned to be operational by the end of 2010.

The 45 MWth and 23 MWe power plant will be biomass and peat fuelled, with biomass to be used as much as is available in the local market and remaining fuel covered with peat.

Replace aging capacity and natural gas based production, Fortum will invest around €80 million in the project.

Jaakko Vähä-Piikkiö, president of Fortum Heat in the Baltic countries commented: ‘At the moment, we have an on-going CHP plant project in the city of Tartu and this new investment in Pärnu is an important step in delivering further on our growth strategy in the market. At the time we acquired heating operations in Pärnu in 2006, we saw opportunities in investing in the further development of the energy generation and distribution in the city.’