In Sweden, the Board of Directors of municipal energy company Jämtkraft AB has made a decision to go ahead with its plans to build a new biomass-fired combined heat and power (CHP) plant adjacent to its existing Lugnvik facility in Östersund.
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The estimated SEK 1.5 billion (≈ EUR 139 million) investment includes a new CHP plant along with reinforcements of the district heating network and the complete decommissioning of three heavy fuel oil (HFO) boiler units.
The announcement follows almost two years of preparation since the plans were first revealed including a detailed feasibility study and permitting approval from the Land and Environmental Court.
Östersund City Council has however the last word on financing, with a decision that will be made at the end of March 2022.
It is a very large investment that secures renewable heat for our customers in the future. With this investment, we can also offer district heating for new builds, which is an important part of expanding Östersund in a wise way. Jämtkraft has a great responsibility to maintain and renew our socially important operations and that is exactly what we do here, said Kerstin Arnemo, Jämtkraft’s Chairman of the Board.
The investment is set to be one of the largest industrial projects implemented in the region.
The investment is in the same size class as the new hydropower station in Hissmofors, which was completed in 2013, said Kerstin Arnemo.
Reduce emissions and open new opportunities
The new CHP plant is planned to be built next to the existing one, which was put into operation in 2002. The plant will use biomass fuels in the form of residues from the forest- and wood processing industry and recycled wood.
The plant will apply state-of-the-art residual processing technologies such as textile filters, and catalytic flue gas cleaning along with condensate treatment.
The new CHP plant will meet the Swedish government agency for power transmission Svenska Kraftnät’s strict requirements that production facilities contribute to stabilizing the electricity grid.
The plant will also be prepared for the possibility to develop additional renewable fuels, such as hydrogen. The two CHP plants will be operated in parallel while the three HFO-fired reserve boiler units will be decommissioned.
In addition to heat, electricity is also produced in a combined heat and power plant and it feels good that we use biomass fuel in the best way, in addition to heating Östersund, we produce renewable electricity, commented Ylva Andersson, acting CEO of Jämtkraft.
Construction is planned to start in 2022 and be completed in early 2025.