Fortum and Lietuvos Energija to form JV for proposed waste-to-energy CHP plant
Fortum has announced that it intends to form a joint-venture (JV) with Lietuvos Energija to build a waste-to-energy combined heat and power (CHP) plant in Kaunas, Lithuania. Subject to European Commission (EC) approval, the decision to form the JV is expected by end of 2015.
Finland-headed energy utility Fortum has announced that it intends to form a joint-venture (JV) with Lithuania-based energy utility Lietuvos Energija to build a waste-to-energy combined heat and power plant (CHP) in Kaunas, Lithuania.
The establishment of the joint venture is subject to EC merger clearance. The decision is expected by end of 2015 and assuming EC approval, the CHP plant is expected to be commissioned in autumn 2019.
UAB Fortum Heat Lietuva will be a minority owner of the new joint venture, UAB Kauno kogeneracinė jėgainė (KKJ) with up to 49 percent share. The total investment cost of the plant is approximately EUR 150 million, of which Fortum’s direct commitment is approximately EUR 20 million.
According to a statement, the current plan is that the new plant will use annually approximately 200 000 tonnes of local municipal waste, diverted from landfill, to produce heat to Kaunas city district heating network, which serves approximately 111 000 households and 3 500 businesses. The new CHP plant will produce annually approximately 500 GWh heat and 170 GWh electricity.
– The new waste-to-energy plant continues Fortum’s investments in the Baltic countries in energy-efficient CHP technology using local fuels. It is also in line with the National Energy Independence Strategy in Lithuania. We have very good experiences from our first waste-to-energy plant in Klaipeda, Lithuania, which has been in operation since spring 2013, said Vitalijus Žuta, Head of UAB Fortum Heat Lietuva in a statement.