Finnish Fortum and Lithuanian Lietuvos Energija have announced the formation of a joint venture.
The two companies are to cooperate in building a waste-to-energy combined heat and power plant (CHP) in Kaunas, the second-largest city in Lithuania.
According to current plans, the new plant will use approximately 200,000 tons of local municipal waste annually to produce around 500 GWh of heat to the Kaunas city district heating network, which serves 111,000 households and 3,500 businesses. The plant will also produce around 170 GWh of electricity annually.
In addition to reducing CO2 emissions by 65,000 tons per year, the plant significantly reduces the need to deposit waste in landfills.
The total investment cost of the CHP plant is roughly €150 million, out of which Fortum‘s direct commitment is approximately €20 million. The plant is scheduled to be commissioned in the autumn of 2019.
The establishment of the joint venture is subject to EC merger clearance. The decision is expected by the end of 2015. UAB Fortum Heat Lietuva will be a minority owner of the new joint venture with a share of up to 49%.
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