Plans have been announced to build in Central Russia’s Penza a 7MW power station that will use wooden fuel pellets, portal Venture Business News reports.

Additional power capacity will be reportedly installed by processing and burning biomass—wastes of lumbering and woodworking companies.

There is said to be an “investor consortium” to support the project; however, no detail has been given so far.

The project will be coordinated by Kurchatov Instritute National Research Center, responsible for promoting bioenergy across this country.

Russia is reportedly shooting for 4.5% of alternative sources in its energy sector by 2020. In addition to biofuel, the government wants to develop wind and geothermal energy as well, pooling efforts with Iceland, a global leader in this segment.