Osijek to become energy hub, says economy minister

Economy Minister Ivan Vrdoljak said on Friday that the construction of a cogeneration power plant would turn the eastern city of Osijek into an energy hub of eastern Croatia and the wider region.

Visiting the location, Vrdoljak said the project was given a building permit last week and that the contractors, Croatia's Djuro Djakovic and the Dutch company Host, had begun preliminary work for the construction of the EUR 16.2 million biomass-fueled plant for the production of electricity and heat.

Vrdoljak said the plant would employ dozens of people.

The CEO of the HEP power utility, Perica Jukic, said the Osijek and Sisak power plants would be the first cogeneration plants fueled by forest biomass in HEP's portfolio.

The Osijek plant will have three megawatts in electrical and 10 megawatts in heat power. Construction is expected to begin in December and wrap by the end of 2016. The plant is expected to become fully operational in spring 2017.

Last update: Fri, 06/11/2015 - 13:30

More from Business

Croatia presents investment opportunities to Alibaba

Representatives of the Chinese online company Alibaba are considering the Zadar area in Croatia as a location for...

Financial leaders in Davos optimistic about US, but see trade risk

The US economy will likely profit from the planned policies of its new president, as long as Donald Trump does not...

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...