The application for permission to build and operate the power plant has been placed by Fortum Varme, which is jointly owned by Fortum and the City of Stockholm. Fortum Varme hopes to build the new facility in conjunction with its existing bio-fuelled power plant in Brista, outside Stockholm.

Fortum commented that the decision to build the plant in Brista is based on the site’s proximity to Ragn-Sell’s local waste treatment plant, and the fact that there is already a waste-fuelled combined heat and power plant (CHP) plant in South Stockholm, which would allow synergy benefits, especially in logistics.

The new waste-fuelled CHP, which Fortum expects to be operational at the turn of 2010 to 2011, will have the capacity to process 240,000 tons of waste annually, which is equal to the amount of waste produced by all of the households in Stockholm.

Fortum said that, by using waste to generate heat and power, the company is producing environmentally benign energy and contributing to effective waste handling in the Stockholm region.