In a press release, Eesti Energia said that the planned co-generation plant would produce 1.7MW of electrical power, and 1.9MW of thermal power. The utility revealed that the heat generated would be used in the process of producing biogas and in order to meet the thermal necessity of a pig farm.

Eesti Energia added that the plant would be built after the completion of all necessary surveys and the adoption of an investment decision in 2008.

Toomas Niinemae, the field manager of renewable energy and co-generation at Eesti Energia, commented that co-generation is the most effective method of energy production, as electricity and heat are obtained from an incidental amount of fuel. Andres Veide, the development director of Ekseko, added: The objective is to process waste into energy and fertilizer instead of utilizing it, and to profit from this.

Mr Niinemae said that Eesti Energia and Ekseko have been looking into a possible co-generation plant since 2004. He added: Following the conclusion of the cooperation agreement today, the designing and planning of the biogas plant and the application for a building permit for the biogas plant will commence. We are also conducting the process of environmental impact assessment.

Eesti Energia commented that the amendments to the electricity market act had improved the economic indicators of the project, giving the venture a new boost.