Finland's Fortum and Lithuania's Lietuvos Energija's joint venture company, Kauno Kogeneracine Jegaine (KKJ) will build a waste-to-energy combined heat power plant in Lithuania's second biggest city Kaunas, Fortum announced on Friday.
Contracts were signed for the provision of the main equipment, engineering, procurement, construction and management consultancy.
Investment in the project is estimated at €160 million while Fortum’s direct commitment will be approximately €27 million.
The power plant's construction will start this autumn and the plant plans to be commissioned by the middle of 2020.
The next stage of the project will be to finalize the engineering works.
Electricity capacity of the Kaunas waste-to-energy plant will be 24 megawatts and thermal capacity is about 70 megawatts.
Lietuvos Energija owns a 51 percent interest in KKJ while Fortum owns the remaining 49 percent.
By Murat Temizer