A new biofuel-fired plant, which will be constructed in Järvenpää, Finland, which will have an annual production about 280 GWh of heat and about 130 GWh of electricity.

Biofuels such as wood chips and forest by-products such as sawdust and bark, and in addition some peat will be used in the plant which will be linked to the existing Tuusula and Järvenpää district heat network.

The network will be combined into one network as part of the current investment.

A similar biofuel-fired CHP plant will be built in Jelgava, Latvia, which will have an annual production is approximately 230 GWh of heat and 110 GWh of electricity.

The plant the first biofuel plant of this scale in Latvia, the company said.

Fortum said the plants, estimated to start commercial operation in 2013, are expected to reduce CO2 emissions and increase the use of local fuels in both Järvenpää and Jelgava regions.