The boiler will be fueled with wood chips and bark. With the investment, Skövde Värmeverk will be able to reduce the amount of fossil fuel used, and meet the increasing demand of district heating in its operating area.

"Block 4 is a large environmental project for us. A biomass fired power plant is first of all an investment in the environment. Currently we need to run heavy oil fired power plants as soon as the temperature goes down to -2 C. Once Block 4 goes on stream, we will be able to let the temperature drop down to -15 C before we need to use oil in our production," says Carl-Johan Andersson, Managing Director, Skövde Värmeverk. "This is the largest environmental investment that the municipality of Skövde has ever made."

The value of the order is about EUR 30 million.