Jan 16, 2012. /Lesprom Network/. German Pellets is strengthening its presence on the Italian market. The newly founded subsidiary German Pellets Italia plans to build and operate combined heat and power (CHP) plants in Northern Italy, as the company said in a press release received by Lesprom Network. “This is a very important step for our company’s further expansion on the European market,” said Peter Leibold, managing director of German Pellets GmbH. German Pellets Italia was founded together with an Italian partner. In the coming years, the subsidiary wants to build and operate CHP plants for the production of electricity and heat from wood pellets, primarily in Northern Italy. The framework conditions in Italy are especially good, owing to the adequate feed-in tariffs for electricity from CHP plants. Up to 28 cents per kilowatt-hour are paid for green electricity fed into the national grid. German Pellets will sell the thermal energy to customers in the region. The cogeneration of heat and power will play a major role in the future energy mix. “The technology is highly efficient. In Italy we are following a decentralised model, which makes it possible to produce energy close to where it is used,” said Peter Leibold. The small power plants supply 180 kW of electricity and 240 kW of heat. This is enough electricity to power 350 households for one year. The thermal energy produced can meet the yearly heating requirements of approx. 100 households. “With the operation of these CHP plants, we will increase our pellet sales in the long term and secure a broader basis for our growth through the additional sale of green electricity and heat,” said German Pellets’ CEO Leibold.