Swedish utility Vattenfall has made a final investment decision for the development of a new €325m ($349.5m) gas-fired combined heat and power plant in Berlin, Germany.

Planned to be built in the Berlin district of Marzahn-Hellersdorf, the new combined heat and power plant (CHP) will be capable of producing 260 MW electrical and 230 MW thermal capacity.

The power plant will have a fuel efficiency of approximately 90%, making it one of the most modern assets of its kind. It is expected to support Berlin’s climate protection and energy transition strategy.

Vattenfall Germany representative Tuomo Hatakka said: “This decision is a clear commitment to Berlin. With the construction of this CHP we will fulfill one further topic of the climate protection agreement with the Berlin senate that we signed in October 2009. We are well on track with halving our emissions compared to 1990.”

The firm said that the investment decision will play an important role in achieving Berlin’s climate neutrality.

Vattenfall Wärme management board spokesperson Gunther Müller said: “The new CHP in Marzahn is an important element of this. It will ensure a climate-efficient and reliable district heating supply for the coming decades and will be the base-load power plant for the district heating areas in the Eastern part of the city.”

Vattenfall plans to commence construction of the project in April 2017 with the plant scheduled to be commissioned in 2020.

In December 2015, Vattenfall selected Siemens as general contractor for the project following an international tender process.