In accordance with the Energy Development Strategy of the Republic of Croatia until 2020, one of the main priorities is the production of energy from renewable sources.

The project of construction of a cogeneration forest biomass in which electricity and thermal energy are produced, with a high degree of activity, follows this basic direction outlined in the Strategy.

The said project is currently promoting the use of renewable energy sources, ie forest biomass.

The cogeneration plant uses as a raw material a finished chips obtained from forest biomass. Electricity is transmitted to HEP's electrical grid while thermal energy is used to dry the wood in the adjacent Bio Pellet Energy plant d.o.o. for the production of pellets.