Vattenfall has announced an investment of €83.5m in a district heating firm, in a bid to renovate the combined heat and power (CHP) plant in Wedel, Germany.
The investment is aimed at boosting the city's heat supply for the next couple of years ensuring adherence to the environmental standards.
Vattenfall will collaborate with the City of Hamburg to reach a long-term solution to secure the city's heat supply by replacing the hard coal-fired CHP plant.
The project will involve refurbishment works on the turbines, boiler and control system of the plant.
Business area heat head Tuomo Hatakka said: "In parallel to the refurbishment of the plant in Wedel Vattenfall is developing a concept to achieve climate neutrality in Hamburg heat operations by 2050.
"It could include heat storage, power-to-heat, industrial heat, decentral solutions and possibly gas-CHP that will replace the existing plant. The concept will be developed in close alignment with the City of Hamburg."
The project work on Wedel is expected to commence later this year, with most of the refurbishing activities scheduled for a maintenance period between 2016 and 2018.
Last month, Vattenfall awarded Swiss power and automation group ABB an order worth more than $22m to upgrade a 150-kilovolt (kV) high-voltage direct current (HVDC) transmission link in Sweden.
Image: Thermal Power Station Wedel in Schleswig-Holstein. Photo: courtesy of Vattenfall.