Opcon Bioenergy, a subsidiary of Opcon Energy has executed a final agreement with Goteborg Energi's subsidiary Falbygden Energi for the construction of a new bioenergy-powered combined heating and power plant (CHP) for Marjarp and Falkoping in Sweden.

The KRW80m ($12.58m) CHP plant will be powered by bioenergy and will be equipped with flue gas treatment and condensation.

The is expected to have will have 12 MW of heating capacity and 2.4 MW of electric capacity.

Construction of the plant is slated to be completed in 2012, and the plant will be able to supply green electricity and heating to the town of Falkoping.

Opcon Bioenergy CEO Claes Scheibe said this is the largest ever order for Opcon Bionergy so far and that they consider small-scale bioenergy-powered CHP as a winning solution for the future, both economically and for the environment.