Scheduled to be commissioned in late 2016, the new power plant can produce heat to the local district heat network and electricity to the national grid.
The plant’s boiler will be fueled with wood chips and bark.
The contract will allow Skövde Värmeverk to reduce the amount of fossil fuel used while meeting the increasing demand of district heating in its operating area.
Skövde Värmeverk managing director Carl-Johan Andersson said: "Block 4 is a large environmental project for us. A biomass fired power plant is first of all an investment in the environment.
"Currently we need to run heavy oil fired power plants as soon as the temperature goes down to -2 C. Once Block 4 goes on stream, we will be able to let the temperature drop down to -15 C before we need to use oil in our production," says
Valmet senior sales manager Mikael Barkar said: "We have worked intensively to meet the customer’s needs and adapted the plant to meet their high requirements for functionality and quality."
