Grenaa CHP Plant is situated northeast of Grenaa town centre, in an industrial area with a number of energy-intensive enterprises. Besides supplying district heating to Grenaa, the plant also supplies process steam to several of these enterprises using steam in their production.  

Grenaa CHP Plant is a multi-fuel-fired electricity and heat producing plant capable of using coal and straw in a mixture with up to 60 % straw – or coal alone. The fuel is mixed in the boiler furnace with an inactive material (sand, ash or the like), and combusts at a relatively low and uniform temperature of 850° C. The low temperature sharply reduces the emission of nitrogen oxides and allows desulphurization to take place in the furnace itself.

The plant has a capacity of 18 MW of electricity and a maximum heat production of 60 MJ/s.