Sydkraft AB has built the world＇s first complete IGCC Power Plant which utilises wood as fuel. The plant is located in Varnamo, Sweden, and the technology used in the power plant is based on gasification in a pressurised circulating fluidised bed gasifier. The gasification technology is developed in co-operation between Sydkraft AB and Foster Wheeler Energy International Inc., who also supplied the gasification plant. The plant at Varnamo produces about 6 MWe electricity to the grid, as well as 9 MWth heat to the district heating system in the city of Varnamo, from a total fuel input equivalent to 18 MW. The Varnamo plant is an important step forward in developing highly efficient and environmentally acceptable technologies based on biomass fuels. Experiences gained in this co-generation plant will be utilised in the design of new and larger plants which will generate twice as much electricity as a conventional steam cycle plant with the same amount of heat demand. The start-up phase was completed during spring 1996 and the plant is now available for research and development work. A demonstration programme was launched in 1996, which will continue for some years, and during this period advantages and possible limitations of the new technology will be evaluated. Specific areas of interest include environmental issues, fuel flexibility and production costs in future facilities in addition to the technical development and improvements of the plant. As only part of the programme has yet performed, many of the tests still remain and accordingly must be reported at a later opportunity. However, operating experience with a fully integrated plant i.e. gas turbine on 100% gas, had by March 1997 exceeded 950 hours.