The project aims at introducing a new approach and implementation of innovative technology in the production of combined heat and power by combustion of wood biomass. Heat energy will be used in the process of pellet production, with parallel electricity generation that will be sold to EPS at affordable prices. The project also introduces a new business model of cooperation with partners, associates, suppliers of raw materials, local agricultural holdings and local self-government. The plant will use biomass near the collection site, which will result in lower transportation costs and reduction of GHG emissions compared to a collection from distant parts of Serbia. A part of wood biomass will be obtained by extracting waste wood that endangers the work of HPP Djerdap.