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Go-ahead for new hard coal-fired power plant in Hamm.
Our comprehensive investment programme centres on the expansion and modernization of our power plants. We made good headway in this area in 2008. In March, RWE Power began to construct a hard coal-fired power station in Hamm, Germany, having received the go-ahead from the Arnsberg district administration in compliance with the German Emission Control Act. The two units are scheduled for commissioning in 2011. With a net installed capacity of 1,530 MW Glossary and efficiency Glossary of 46%, the power plant will realize roughly 2.5 million metric tons in CO2 savings per year compared to older facilities, while generating the same amount of electricity. Furthermore, the construction plans already allow for the installation to be retrofitted with carbon capture technology. The total investment in the dual-block plant amounts to €2.1 billion. In February 2008, 23 German municipal utilities became partners in the new power plant. They will hold a combined stake of 350 MW of generation capacity.
Preparatory work for hard coal power plant in the Netherlands commenced.
We also want to build a dual-unit hard coal-fired power station in the Netherlands. The power station will have a net installed capacity of 1,560 MW and an efficiency of over 46%, making it one of the most modern of its kind in the world. We expect to be able to start construction work in the first half of 2009. Providing the project stays on schedule, the first unit could go online in 2013. The plant’s design will allow for units to be retrofitted in order to extract CO2 from flue gas. Furthermore, biomass can be used for up to 10% of the heat generation. The investment will be an estimated €2.6 billion.
New 800-MW Glossary hard coal-fired power plant planned in Poland.
In June, we took the first steps towards building a hard coal-fired power station in Poland. We agreed with Kompania Węglowa, the EU’s largest coal mining company, to establish a joint venture in which RWE will own an interest of at least 75%. Among other things, Kompania Węglowa would provide the location and supply the power plant with hard coal. The definitive decision concerning the investment is expected to be taken by the end of 2009.
RWE chosen as strategic investor for nuclear energy projects in Bulgaria and Romania.
We also plan to build and operate power stations in Bulgaria and Romania. In Bulgaria, a nuclear power plant project in Belene, a site in the north of the country, is of interest to us. The national electricity company NEK intends to build two units, each with an installed capacity of 1,000 MW, in co-operation with us. In December 2008, RWE and NEK signed an agreement to establish a joint-venture company in which NEK will hold a 51% interest. We have the option to share our 49% stake with another partner. The joint venture will address major technical, legal, financial and economic issues in the project phase, which is already underway. Compliance with the highest safety and transparency standards is the central prerequisite for our participation in the project.
In Romania, the state-owned SNN plans to build two new nuclear power generation units, each with an installed capacity of 720 MW, in Cernavoda together with six international partners, including RWE. In November 2008, the companies involved agreed the foundation of a project company. SNN will hold a majority stake of 51%. Our share will amount to 9.15%. The project company will spend its 18-month development phase clarifying all of the safety and technical details. Afterwards, the partners will decide whether to invest. If the project stays on schedule, the new units could go online in 2015/2016.
Site for climate-friendly coal-fired power plant chosen.
We also made progress in preparing for the planned nearly CO2-free large-scale coal-fired power plant, which will be one of the first of its kind worldwide. In August 2008, we selected the site and the energy source: It will be built in Hürth near Cologne (Germany) and fuelled by Rhenish lignite resources. The power plant will feature integrated gasification combined cycle (IGCC) technology. This technique converts the lignite into a gaseous state, after which the carbon dioxide is captured. This produces a synthesis gas with a high hydrogen content, which is used to generate electricity in gas and steam turbines. The plant will have a gross installed capacity of 450 MW. Provided legal steps to accelerate the approval process are successful, the earliest plant commissioning will be the end of 2014. About 90% of the CO2 produced by the power plant can be captured and put into long-term storage in geological rock formations. RWE Dea plans to investigate potential storage locations in Schleswig-Holstein. We applied for the required permits last year. The power plant, pipeline and storage facility will cost around €2 billion. RWE is willing to invest €1 billion. In addition, we are seeking the participation of partners and state subsidies for the project. The latter are a major criterion for deciding in favour of the investment. Another necessary element is an appropriate legal framework.
