Croatian electricity company HEP said it signed a deal for the construction of a combined heat and power (CHP) plant in Sisak with companies HoSt and Đuro Đaković.
The contract worth EUR 18.95 million was signed less than a week after a similar document for a CHP system in Osijek. The contractor was selected from an international bid conducted in accordance with procedures of German development bank KfW, which provided loans for the projects, HEP said.
The BE-TO Osijek 2 deal, worth EUR 16.25 million, was signed on April 10 by Croatian energy minister Ivan Vrdoljak and the representatives of national power producer HEP, as well as of HoSt and its consortium partner company Đuro Đaković, the ministry said.
The biomass plants will supply 2 MW of electricity to the grid each. The residual heat generated will be supplied to the district heating networks in the cities of Sisak and Osijek.
The heat of 10 MW overall capacity for each facility will be utilized for district heating purposes, while the water vapour from the flue gasses shall be condensed, generating approximately 25% more heat with the same amount of wood, the company said.
HoSt, a bioenergy systems supplier headquartered in Holland, said on April 10 it received an order of EUR 20 million from HEP to build the two wood-fired plants.
