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.