Metso has won a 20 million euro contract to build a biomass power plant for combined heat and power production (CHP) in east Germany.
The plant will burn forest residues and wood based landscaping material to produce 10 megawatts of heat for the municipality of Zwickau and five megawatts of electricity for the power grid. It will connect to the grid in late 2012.
The plant will be built by MW Power, a joint venture between Metso and Wärtsilä.
This will be the eighth delivery of a such complete modularized CHP plant to Germany by MW Power which has set up similar facilities in Finland, Sweden, Belgium, the Czech Republic Belarus and Ireland.
- Through this investment, we will not only secure the production of district heat for our town but will also reduce our dependence on ever rising oil and gas prices, says Volker Schneider, Managing Director of Zwickau Energieversorgung.
- We are also very optimistic that the price paid for the district heat can be lowered from today's level.
The plant's commercial viability is supported by German legislation on renewable energy which provides fixed feed-in tariffs for electricity produced from renewable sources and secures the payback period of the investment.