Norwegian Statkraft, German Mark-E to build 400 MW CCGT in Germany
Norwegian power producer Statkraft and German utility Mark-E have agreed to jointly construct a 400 MW combined cycle gas turbine (CCGT) near the German city of Dortmund. The facility is envisaged to go into production in autumn 2007 and will produce 2.4 TWh per year, Statkraft disclosed on Friday.
“This is a strategically important move for Statkraft,” c.e.o. Bård Mikkelsen said in a statement. “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.”
The move is part of Statkraft´s strategy to strengthen its asset base in continental Europe, which it follows through investments in power plants and gas storage as well as through long-term power contracts.
Construction of the EUR 220 million CCGT project at Herdecke is planned to commence in the autumn, pending the approval of German authorities. The plant will have an energy efficiency of at least 57.5%. Both co-owners will have an equal proportion of equity production capacity, reflecting shared control of the 50-50 joint venture. Gas supply contracts will be negotiated through the joint project company.
Germany´s largest power producer RWE owns a 20% stake in Mark-E, whose major shareholders are the cities of Hagen (44.7%) and Lüdenscheid (22%). The utility sold a total of 6.7 TWh last year and generated about 2.70 TWh in its own power plants, which have a combined capacity of 1,000 MW.
Statkraft, which produces a total of 41 TWh per year, steers its operations in continental Europe through its German-based affiliate Statkraft Markets Continental. IE
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