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Released January 04, 2016 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Czech Republic's state-owned energy company, CEZ AS (PSE:CEZ) (Prague), has announced plans to buy the German coal-fired and hydroelectric power and mining assets of Sweden's state-owned Vattenfall AB (Stockholm, Sweden).
The non-binding offer covers the potential purchase of four power plants, five mines and 10 hydroelectric plants. This includes the coal-fired Boxberg, Jänschwalde, Schwarze Pumpe and Lippendorf block R power plants as well as corresponding mining activities at Jänschwalde, Nochten, Reichwalde, Welzow-Süd and Cottbus Nord. The power plants have a combined capacity of more than 8,000 -megawatts (MW).
Vattenfall is also selling off its hydro assets in the region, but only as part of the lignite sale, not separately. Industrial Info reported on Vattenfall's divestment plant in September last year. For additional information, see September 28, 2015, article - Vattenfall Begins Sale of German Coal-fired Assets.
"These assets represent an interesting opportunity to expand business of CEZ in a neighbouring region," the company stated. "In Europe where coal is still crucial for the overall energy supply, CEZ has extensive know-how in operation of conventional power plants and of lignite mining, as a bridge technology to more renewable energy sources."
Vattenfall has been trying to clean up its energy mix in recent years, focusing most of its new investments on renewable energy projects. Its conventional power assets have been dragging down company profits. Last July it posted its largest operating loss due to financial write-downs associated with its nuclear power and coal operations. For additional information, see July 27, 2015, article - Vattenfall Profits Plunge on Weak Coal and Nuclear Assets.
Germany has been cracking down on coal-fired power in the past year as part of its energy transition to more renewable energy sources, mainly solar and wind. The coalition government had threatened to impose a new coal tax but came to an agreement with utilities that would see a combined 2.7 gigawatts (GW) of coal-fired power placed in reserve to be used only as "facilities of last resort." For additional information, see November 3, 2015, article - Germany Puts Coal-Fired Plants on 'Standby'.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe.
The non-binding offer covers the potential purchase of four power plants, five mines and 10 hydroelectric plants. This includes the coal-fired Boxberg, Jänschwalde, Schwarze Pumpe and Lippendorf block R power plants as well as corresponding mining activities at Jänschwalde, Nochten, Reichwalde, Welzow-Süd and Cottbus Nord. The power plants have a combined capacity of more than 8,000 -megawatts (MW).
Vattenfall is also selling off its hydro assets in the region, but only as part of the lignite sale, not separately. Industrial Info reported on Vattenfall's divestment plant in September last year. For additional information, see September 28, 2015, article - Vattenfall Begins Sale of German Coal-fired Assets.
"These assets represent an interesting opportunity to expand business of CEZ in a neighbouring region," the company stated. "In Europe where coal is still crucial for the overall energy supply, CEZ has extensive know-how in operation of conventional power plants and of lignite mining, as a bridge technology to more renewable energy sources."
Vattenfall has been trying to clean up its energy mix in recent years, focusing most of its new investments on renewable energy projects. Its conventional power assets have been dragging down company profits. Last July it posted its largest operating loss due to financial write-downs associated with its nuclear power and coal operations. For additional information, see July 27, 2015, article - Vattenfall Profits Plunge on Weak Coal and Nuclear Assets.
Germany has been cracking down on coal-fired power in the past year as part of its energy transition to more renewable energy sources, mainly solar and wind. The coalition government had threatened to impose a new coal tax but came to an agreement with utilities that would see a combined 2.7 gigawatts (GW) of coal-fired power placed in reserve to be used only as "facilities of last resort." For additional information, see November 3, 2015, article - Germany Puts Coal-Fired Plants on 'Standby'.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to europe@industrialinfo.eu or visit us online at Industrial Info Europe.
