RWE Investing $13.5 Billion in Projects, Calls for Stable Energy Policy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Two new RWE Power (OTC:RWNEF ) (Essen, Germany) projects, one coal-fired and the other using a gas feed, bring the company’s current investment in projects in the pipeline to more than $13.5 billion. With this commitment to cleaner power and future supply security, the company is calling for a stable-energy-policy framework geared for the long-term view of energy projects. RWE Power CEO Harry Roels said that current draft legislation in Germany on emissions trading and proposals to interfere in the functioning electricity market by means of changes to the country’s antitrust law do not guarantee such conditions.

A 1,600-megawatt coal-fired plant will be constructed at the company’s existing site at Ensdorf in Saarland. The $2.7 billion plant will have two Alstom (OTC:AOMFF ) (Paris, France) steam turbine generator sets powered by two pulverized-coal-fired boilers and is scheduled to come into commercial operation toward the end of 2012. Construction is scheduled to begin in the third quarter of 2008.

At Lingen in Lower Saxony, construction for an 876 MW CCGT power plant will begin construction as part of a $675 million project in the first quarter of 2008. A natural gas pipe storage facility at the existing site in Lingen will provide the fuel feed for the plant, which will be powered by two Alstom KA26 single shaft combustion rains. The plant is scheduled to come on steam in 2009 and will provide employment for a workforce of 3,500 during the building phase. The Ensdorf and Lingen projects are still awaiting final approval.

Currently under construction by RWE are the lignite coal-fired units two and three at the Grevenbroich Neurath power plant in North Rhine-Westfalia. This project will add 2,200 MW and will be powered by two Alstom 1,100 MW steam turbine generators fed by two pulverized-coal supercritical boilers. The plant is being constructed with optimized plant engineering, and the gas turbine units are nearing completion. In the same region, RWE is planning to build the Westfalen 1,500 MW coal-fired plant at Hamm with two steam turbine generator sets. This will boost power capacity at the existing site to 1,996 MW.

RWE also plans to build a coal-fired plant in the Netherlands and a lignite-fired plant in Hungary. The firm is also pursuing what it calls its flagship project of a CO2-free power plant.

Roels said the company’s power–plant-construction program aims to ensure secure and efficient energy supplies, sustainable climate protection and fresh impetus for growth in the Manufacturing and Construction industries. The efforts would also strengthen Germany’s position as a business center. “Our investment program is firmly in place. Realization now depends on how politicians actually set up the framework conditions,” Roels said.

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