In Lutsk, an agreement was signed to start the construction of a new power and/or heat generation plant on Korsaka Ivana Street
In Lutsk, a tripartite agreement has been signed between SME "Lutskteplo," the Swedish fund "Swedfund International AB," and the Danish company "Ramboll Danmark A/S" to develop a feasibility study for the construction of a solid-fuel boiler house on Korsaka Ivana Street (formerly Karbysheva Street).
The new boiler house will have a capacity of 16 MW, including two gas-piston cogeneration units with capacities of 2 MW and 1 MW. This facility aims to provide services to city residents during the non-heating season without relying on the existing gas boiler house on Korsaka Ivana Street.
The agreement signing followed an online meeting involving Lutsk City Mayor Ihor Polishchuk, SME "Lutskteplo" Director Ivan Skorupskyi, and representatives from Swedfund International AB and Ramboll Danmark A/S.
Lutsk City Mayor expressed gratitude to the Swedish fund leadership for their support in advancing Lutsk development. He highlighted that the boiler house on Korsaka Ivana Street serves approximately 45% of SME "Lutskteplo" consumers. In recent years, the load on this facility has significantly decreased due to the installation of heat pumps in multi-apartment buildings, leading to reduced thermal energy consumption. Occasionally, when thermal energy consumption drops below 30%, the boiler plant shuts down automatically, posing challenges for SME "Lutskteplo." The mayor hopes that this project will reduce atmospheric emissions and promote more rational resource use in thermal energy production.
Director Ivan Skorupskyi emphasized the project's environmental objective—decarbonizing the sector—a goal the enterprise has pursued since 2019. In collaboration with the EBRD and with technical consultancy from Ramboll, a 5 MW biomass boiler was constructed and is currently operational. Supported by the USAID Energy Security Project, SME "Lutskteplo" approved the city's heating scheme in 2022. Within this framework, projects for constructing 8 MW and 4 MW biomass boiler houses have launched. The current agreement facilitates the implementation of a 16 MW project, potentially enabling Lutsk to replace approximately 33% of its natural gas usage.
Karin Kronhöffer, Director of Strategy and Communication at Swedfund, thanked the Lutsk City Council and SME "Lutskteplo" for the opportunity to initiate this significant initiative, which aims to enhance the city's thermal energy supply. She noted that this aligns with Swedfund's commitment to supporting Ukraine in ensuring sustainable development and strengthening critical infrastructure. Currently, their project team is involved in over 25 projects in Ukraine related to critical infrastructure, with plans to expand their presence. This project represents another step toward increasing energy efficiency, reducing environmental impacts, improving quality of life, and, more broadly, elevating Ukrainian infrastructure to European standards.
The construction of the solid-fuel boiler house on Korsaka Ivana Street is the first phase of a project to build a new electric and/or thermal generation plant at the same location. The second phase envisions constructing a new 80 MW gas boiler house to ensure stable and reliable energy supply for the Zavokzalnyi district.
Developing the feasibility study is the initial step in implementing such projects according to international standards. Having an FS allows for investor search and serves as a foundation for creating project-estimate documentation and the project's successful realization.
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