Ludzas Bio - energy is the local district heating company, which is situated in Ludzas town. The Ludza region and the local district company is unique from two aspects: 1) It is the first region where the district heating has been developed based on public-private partnership principles together. 2) Heat Production Company has developed unique flue gas condensation plant for Latvia case. The technique is patented and can ensure up to 20% of energy efficiency if there is appropriate biofuels quality; the capacity of the boiler and combustion conditions.