Bosnia and Herzegovina: Biomass District Heating for a Cleaner Banja Luka


  • S02 emissions reduced by 67%
  • CO emissions reduced by 48%
  • Introduction of consumption-based billing stimulating energy savings
  • Job creation


Before its transition to biomass, the district heating system of the city of Banja Luka, the second biggest city in Bosnia and Herzegovina, relied on a low quality, highly polluting fuel oil mazout. This resulted in severe regional air pollution with major negative impacts on human health and the environment.


In 2017, the company IPP JSC concluded a strategic partnership with the city of Banja Luka for the construction of a new biomass-based district heating plant.

The new plant, with installed capacity of 65 MW, commenced its operation in February 2018 and entirely replaced the highly polluting mazout-based system.

Around 20.000 customers are currently heated by the district heating system, with the number set to steadily increase.


The project was supported and financed by European Bank for Reconstruction and Development (EBRD).


The transition to biomass has had a significant positive impact on the environment and human health. In 2018, S02 emissions were reduced by 67%, from 25,302 μg/m3 in 2015 to 8400 μg/m3. CO emissions were reduced by 48%, from 1,046 μg/m3 to 0,55 μg/m3 during the same timeframe. The 80.000 tonnes of biomass annually needed to run the plant is supplied entirely by domestic companies, thus contributing to the local economy.