The plant will have a 23MW heat production capacity. The new power plant will be biomass and peat fueled. Biomass will be mostly used, depending on its availability in the local market, with the deficit fuel requirement to be covered by peat.

Compared to separate generation, switching to combined heat and power (CHP) generation is expected to considerably increase energy efficiency, with CO2 emissions set to reduce by more than 60%.

Jaakko Vaha-Piikkio, president of Fortum Heat in the Baltic countries, said: At the moment, we have an on-going CHP plant project in the city of Tartu and this new investment in Parnu is an important step in delivering further on our growth strategy in the market.