Statkraft and Mark-E to cooperate on a CCGT-project in Germany

25.01.2005 08.00 | pressrelease

(Oslo, 25 January 2005) Statkraft and the energy company Mark-E have agreed to jointly explore the possibility to build a gas-fired power plant close to Dortmund in Germany.

Statkraft and Mark-E are together developing plans for a gas-fired power plant of 400 MW, with an annual production of appr. 2.4 TWh in Herdecke south of Dortmund. The plant will be based on the best available technology with regard to environment, safety and efficiency. If the project is realised it will replace a coal-fired power plant that has been decomissioned. This will help reduce the overall emissions of greenhouse gases. Mark-E's regional neighbouring utility company, AVU, will also join the cooperation.

After signing the joint development agreement the partners are ready to take the next steps in developing the project as well as finalising the public licensing process. Ownership stakes between the partners are to be decided. The intention is to have the final investment decision by summer 2005. The total investment amount for the project is estimated to be around 200 million euro.

"This joint development agreement supports Statkraft's vision to be a European leader in environmentally friendly energy. We are pursuing several gas-fired power plant projects in Germany and are very pleased to have Mark-E as a partner on the Herdecke project. The company is an experienced operator of gas-fired facilities with proven skills to develop such plants", says Ingelise Arntsen, Statkraft's Executive Vice President for the business area New Energy.

Mark-Eis a multi utility and infrastructure provider in the Märkische Region in the southern part of the state of North Rhine Westphalia. Main shareholders of the company are the city of Hagen (44.7%), the city of Lüdenscheid (22%) and RWE (20%). The company is headquartered in the city of Hagen. In 2003 it supplied 6 TWh of power to 230,000 residential and 1,900 commercial customers. Moreover, Mark-E supplies the city of Hagen with natural gas and water. Mark-E is one of the biggest independent regional energy companies that owns generation capacity in North Rhine Westphalia. The company employs 1,150 people. The company produces 3.2 TWh of electricity at their Werdohl-Elverlingsen, Hagen-Kabel and Finnentrop-Rönkhausen sites, which have a total capacity of 1,000 megawatt consisting of hard coal, gas and hydro generation facilities.

AVU- Aktiengesellschaft für Versorgungs-Unternehmen - supplies energy services to seven of nine cities of the Ennepe-Ruhr-Kreis. It also supplies Stadtwerke Witten and Hattingen with natural gas and Witten also with grid services. AVU has a strong regional focus. In 2003 AVU sold 1.1 TWh of energy and had a turnover (energy, natural gas, water and service) of 253 million euro with a net profit of 8.4 Million Euro. Shareholders of AVU are RWE (50%), the Ennepe-Ruhr-Kreis (29.1 %) and the cities Gevelsberg (12.8 %), Schwelm (6.9 %) and Ennepetal (1.2 %) located near the city of Dortmund.The company is based in Gevelsberg and currently owns no generation facilities except for two wind power machines.

Statkraftwishes to be a leading European company in the field of environment-friendly energy. Based on more than 100 years of knowledge and investments, the Statkraft Group is well equipped for further growth and development - and has a clearly stated desire to create lasting value. Statkraft stands for sustainable development in both an environmental and a financial sense. It achieved pre-tax income for 2003 of almost NOK 4.8 billion. The Group produces a total of 42 TWh per annum, making it the third-largest producer of electricity in the Nordic region and the second-largest producer of renewable energy in Europe. The Group has approximately 2,000 employees and trading offices in Stockholm, Düsseldorf and Amsterdam.