Hungary's ELMIB plans to build a HUF 9 billion biomass-fueled power plant in Salgótarján, CEO József Kele announced on Tuesday. The plant will operate from Q4 2012, generating some 200,000 GJ of heat, or enough for 60% of the city's district heating demand, Kele said. It will also generate 12.5MW of electricity, enough for all 20,000 of the city's homes, he added.
The plant, to be fueled with wood industry waste, will cut the city's district heating tariffs by 10%, said mayor Melinda Sztremi Széky.
ELMIB will pay for the investment with its own resources and bank loans. It also hopes to win HUF 1 billion in European Union grant money.
EETEK Holding Energy Efficiency had plans to build a biomass-fueled power plant in the city in 2006, but the investment came to a halt. ELMIB bought the project company for the plant from EETEK in October.
ELMIB was established by the Hungarian Development Bank (MFB) in 2000. The company was sold to its management in 2005.
ELMIB had revenue of almost HUF 21 billion in 2008, more than double the amount in 2007. After-tax profit came to HUF 1.5 billion in 2008 and net assets rose to HUF 8 billion by year-end.
ELMIB recently started building a biogas power plant in Dömsöd. It is building a biomass-fueled power plant in Kaposvár, which it will also complete in 2010, and it plans to develop the district heating system in Tatabánya, where it is part-owner of the city's heating plant. (MTI-Econews)