July 26 (Renewables Now) - The Spanish unit of Engie SA (EPA:ENGI) has been awarded a government contract to build and operate a biomass heating plant with an installed capacity of 29 MW in Pamplona in Spain’s Navarre region.
The concession to operate the plant will run for 25 years, Engie said Wednesday.
The power utility has been selected by Navarra de Suelo y Vivienda SA (Nasuvinsa), the Navarre government body in charge of housing and urban development. The biomass heating system was developed by the Navarre government in collaboration with the city council of the region’s capital Pamplona. The new plant is to supply heat to 4,500 households and several public buildings in the city.
The total investment budget is estimated to be above EUR 12.5 million (USD 13.9m), to which Engie will contribute EUR 6 million. Nasuvinsa will provide the remaining EUR 6.5 million for civil works, urban development and distribution networks, sourcing half of its share from the EU fund for Navarre.
Engie will build the plant on public land in two phases. The first 14.5-MW portion will be in operation in 2020. At a later stage, the plant will be expanded to reach 29 MW of full capacity.
(EUR 1.0 = USD 1.11)