German gas power plant investment

27.05.2005 11:08 | stock exchange information

Statkraft's board of directors today announced its decision to acquire a 50% stake in the Herdecke gas-fired power plant in Germany. The remaining 50% will be held by the German energy company Mark-E. The total investment (100%) will amount to an estimated EUR 220 million.

(Oslo, 27 May 2005) Statkraft and the German energy company Mark-E will build a new and modern gas-fired power plant (CCGT) in Herdecke, Germany. This investment will give Statkraft access to flexible electricity production in continental Europe, which will strengthen the group's power trading activities.
 
'This is a strategically important move for Statkraft,' says Statkraft CEO Bård Mikkelsen. 'Having our own generating capacity in Germany will strengthen our power trading activities. This investment is an opportunity to increase profits, at the same time as we reduce our risk exposure related to power trading. This gas-fired power plant will be based on the best available technology.'
 
The gas-fired power plant in Herdecke, near Dortmund, will be built as a 50-50 joint venture between Statkraft and the German energy company Mark-E. It is expected that construction will get underway in the autumn of 2005, with the power plant scheduled to go into production in the autumn of 2007. Before construction work can commence, the project must be approved by the German authorities.
 
The gas-fired power plant will have a generating capacity of 400 MW, and a planned annual output of approximately 2.4 TWh. It will be based on the best available technology in the areas of HSE and energy efficiency, and will have an efficiency of at least 57.5 percent.
 
Total investment in the plant will amount to an estimated EUR 220 million. The joint venture agreement gives both parties equal control of the company. In principle the co-owners will divide the plant's production capacity in accordance with their 50 per cent shareholding. The project company will enter into gas supply contracts to meet the power plant's generating requirements.
 
Contact:
SVP Finance and IR Lisbeth Lindberg, tel: +47 24 06 72 86 or +47 995 23 150
VP Investor Relations Yngve Frøshaug, tel: +47 24 06 78 76 or +47 900 23 021
EVP Ragnvald Nærø, tel: +47 24 06 71 00 / +47 900 803 03