The Singapore-based Tolaram Group plans to build a biomass-fired cogeneration plant estimated to cost 30 million euros in the Estonian town of Kehra.

The annual capacity of the plant is planned at 108 gigawatt-hours of thermal energy and 63 GWh of electric energy. The aim is to launch the plant by the end of 2014, Tolaram said.

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Tolaram is preparing the project in cooperation with Estonia’s state-owned energy group Eesti Energia. “The talks with Eesti Energia have advanced well and we’ve arrived at a protocol of intent,” the head of Tolaram Group’s Estonian operation, Sonny Aswani, said.

Aswani and Eesti Energia CEO Sandor Liive signed the protocol of intent on Wednesday in Singapore in the framework of Prime Minister Andrus Ansip’s visit.

“Kehra has good conditions for building a cogeneration plant as the Horizon pulp and paper mill needs around the year thermal energy that can be used to produce electricity. Eesti Energia is looking for opportunities to diversify its production portfolio, developing combined heat and power generation in areas where it makes sense economically,” Liive said. The investment decision is to be made next year.

The energy produced by the cogeneration plant will be used by Horizon Pulp and Paper that is owned by Tolaram and exports sack kraft papers to 50 countries of the world.

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