Nov. 9 (Bloomberg) -- Singapore’s Tolaram Group plans to build a heat and power plant in Kehra, northern Estonia, for 30 million euros ($41 million).

The plant, to be commissioned by the end of 2014, would have an annual capacity of 108 gigawatt-hours of heat and 63 gigawatt hours of electricity produced from biomass, Sonny Aswani, the company’s managing director, said in an e-mailed statement today.

Tolaram’s local unit, Horizon Pulp & Paper Ltd., runs a packaging-paper mill in Kehra that would ensure year-round demand for the plant’s output.

The project was prepared in partnership with state-owned Eesti Energia AS, which plans to take an investment decision on the project in 2012, according to the statement.

--Editors: James Kraus, Peter Branton

To contact the reporter on this story: Ott Ummelas in Tallinn at oummelas@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net