Tolaram Group of Singapore is preparing to launch a EUR30 million (US$41 million) CHP production project in Kehr, Estonia, using local biomass.

The project is to be prepared in partnership with Estonian energy company Eesti Energia. Tolaram says annual production from this project will be 108 GWh of heat and 63 GWh of electricity per year.

A final investment decision is likely next year and the project could be up-and-running in the latter part of 2014.

The CHP plant would help to reduce Estonia’s dependency on Russian gas imports, while helping the country meet its international climate treaty agreements and improving the overall energy efficiency in the country.

Commenting on the new venture, Sandor Liive, CEO of Eesti Energia, said: “Horizon Pulp & Paper in Kehra offers an attractive incentive for a CHP plant as it has a year-round demand for heat that can be used for electricity generation.

Eesti Energia is looking for opportunities to diversify the production portfolio through development of CHP generation in regions where the combined production of electricity and heat is economically feasible.”

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