The aim of the project is to promote the use of local renewable energy sources in district heating by replacing fossil energy sources with RES, thus ensuring uninterrupted and stable supply of thermal energy to existing consumers, as well as to ensure predictability and stability of the thermal energy tariff in the long term. Within the framework of the project, it is planned to continue and complete the installation and connection of a woodchip-fired water boiler with a capacity of 8MW with a flue gas condenser of 2MW in the city of Olaine in the district heating system, carrying out all the necessary related activities, and the biomass supply system, as well as electrostatic filter, and other necessary auxiliary equipment. •A substantial share of fossil fuels will be replaced by RES in a district heating source;•Co2 emissions from the heat source will be reduced;•A modern thermal energy generating unit with a nominal capacity of 8 MW and a 2 MW flue gas capacitor is installed;•Optimising the costs of the company, thus ensuring stable operation of the company and preventing a jump in the heat tariff;•Increase heating security.The project is planned to be implemented in two stages. Project Phase 1 activities (development of the construction project, execution of construction works, supply and assembly of technological equipment, author's supervision, construction supervision, project management, preparation of the documentation supporting the project) implementation time is until 31 December 2023, project Phase 2 activities (performance of construction works, supply and assembly of technological equipment, author's supervision, construction supervision) planned to be implemented within the framework of the specific support objective 2.1.1 "Promotion of energy efficiency and reduction of greenhouse gas emissions" 2.1.1.3 "Use of RES and increase of energy efficiency in local and individual heating and cooling" of the European Union Cohesion Policy Programme 2021-2027 under the supervision of the Ministry of Economics, implementation time is planned until 31 January 2025.The total financing of the project is EUR 6 527 297.50, including: project stage 1 costs under project No 4.3.1.0/22/A/036 amount to EUR 5 759 463.52, of which EUR 2 219 785.41 from the CF, EUR 3 329 678.11 from private eligible costs and EUR 210 000 from private ineligible costs; project stage 2 costs under the project application "Replacement of fossil fuels in Olaine" amount to EUR 767 833.98, of which EUR 256 915.55 from ERDF funding, EUR 385 373.33 from private eligible costs and EUR 125 545.10 from non-project costs. These funds are not related to the support of national and foreign financial support instruments granted in other projects, ensuring that double funding does not occur.By the end date foreseen in the programme, all relevant activities related to the eligible costs of the project and the significant results to be achieved will be completed. With the transfer of the final report and the application for the final payment by the CFCA, all project components to be provided under the programme will be accepted in the operation and/or testing of the activity-guaranteed indicators. Output indicators will be achieved within the deadlines set out in the programme. The potential ineligible costs of the project are covered by the company from the financial resources raised. Modernisation and increase of heat production capacity using renewable energy sources in district heating is expected to be 10 MW, the calculated annual greenhouse gas reduction is planned to be 8048,156 tonnes of CO2 equivalent per year.Communication and visual identity requirements in the project will be ensured in accordance with Articles 47 and 50 of Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 and regulatory enactments regarding the procedures by which institutions involved in the management of European Union funds ensure the implementation of these funds in the programming period 2021-2027.