The aim of the project is to increase energy efficiency of heating systems by: Increase energy efficiency in heating sources, including reducing the CO2 content of fuel, thus ensuring compliance of Valmiera city heating systems with EU environmental protection requirements, as well as increasing the quality of life of Valmiera city residents by developing availability of environmentally friendly infrastructure throughout the municipality territory. The main activities – construction of a new boiler house on the right bank of Valmiera city with 9 MW woodchip boiler and flue gas condensation economiser up to 1.5 MW, which can be produced up to 93 % of the total thermal energy demand using environmentally friendly fuels. The project will be implemented within 36 months after the conclusion of the contract with CLFA. The project is planned to be completed no later than 16 April 2021.After the implementation of the project, it is planned to reduce CO2 emissions by 92 % or 10 335 tonnes per year. Such a reduction in the volume of CO2 significantly reduces the company’s costs for the purchase of CO2 allowances. After the implementation of the project, the total fuel costs will decrease by EUR 634121.The project will provide significant economic and environmental improvement, will create additional new jobs in Valmiera city and indirectly support local enterprises in energy production. The total cost of the project is EUR 4 432 005.26,- incl. it is planned to attract co-financing from the Cohesion Fund in the amount of 40 % of the eligible costs of the project.