Peab secures combined heat and power plant build contract in Örtofta, Sweden

Peab, a Nordic construction company, has been awarded a contract to build a combined heat and power (CHP) plant in Örtofta, Sweden.

The client is Kraftringen Energi, a municipality-owned energy company, and the contract is valued at Skr388m ($38.7m).

The new CHP plant will be constructed north of Road 104, adjacent to the existing facility. The plant is designed to complement and replace some of the older production units.

Following a decision by Kraftringen's board in early 2022, the permit review process began in 2023, with approval granted and becoming legally binding in 2024.

Equipped with flue gas condensation and a turbine for electricity generation, the new plant will span a gross area of 11,300m².

The construction will nearly double the current production capacity, allowing Kraftringen to supply up to 25MW to the grid for new electricity consumers. This expansion is stated to be a crucial move towards a more sustainable energy system in the Skåne region.

Kraftringen heating and cooling business area production manager Patrik Schneider said: "It’s important to us to meet current and future energy needs sustainably. Our efforts to continuously improve our production have led to a 94% reduction in our climate emissions. The new CHP plant will further streamline and improve our production.”

Peab region manager Olle Olsson said: "We're pleased and proud to have been entrusted with building this new facility for Kraftringen and to contribute with our expertise to supplying the region with energy."

The project is designed as a turnkey contract, encompassing both construction and land aspects.

Construction is set to commence in mid-2025, with completion anticipated for 2028.

The project will be registered in Peab’s order book for the first quarter of 2025.

Last month, Peab was also selected to construct a new building for the University of Gothenburg’s School of Business, Economics and Law in Sweden.

"Peab secures combined heat and power plant build contract in Örtofta, Sweden" was originally created and published by World Construction Network, a GlobalData owned brand.

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