EuroPower.com

Vattenfall and Dong have confirmed the agreement under which Vattenfall will establish a significant presence in the CHP and wind power sectors in Denmark.

ROGER FRY

According to the agreement, Vattenfall will take over approximately 24 per cent of the generation capacity of Elsam/E2 (excluding the Avedøre II power station, where Vattenfall's holding will be transferred to Dong/Elsam/E2). In exchange for these assets, Dong will take over Vattenfall's 35.3 per cent holding in Elsam.

In total Vattenfall will take over around 2400 MW of generation capacity.

The Swedes will take over the Nordkraft power plant in Ålborg, the Fynsværket plant in Odense and the Amagerværket plant in Amager, as well as plants in Elsinore and Hillerød. These power plants are both coal and gas- fired. Vattenfall will also take over Elsam's onshore wind power assets and 60 per cent of the Horns Rev offshore windfarm.

"This structure will ensure that we acquire new competence and greater resources in the Nordic operations so that we can continue the development of environment-friendly, sustainable energy solutions such as windpower, bioenergy and the reduction of carbon dioxide emissions," Lars G Josefsson, Vattenfall president and CEO, said in a statement, adding that the company's move into the CHP and wind power sectors in Denmark represents an important strategic investment in Nordic operations.

Vattenfall's Danish operations will be handled by its Nordic organisation under the management of senior executive vice President Hans von Uthmann, head of Vattenfall Nordic. The takeover will not lead to any redundancies in Denmark, Josefsson said.

Energi E2's chairman, Ole Brøkner, said that he was pleased that the pieces of the puzzle had now fallen in place.

"I believe this solution could be good for both the workers and the companies' future possibilities," Brøkner said.

The distribution in detail of the assets will be carried out during the summer and autumn. In connection with that, Vattenfall will decide the location of head office for the Danish operations.

The agreement is subject to the approval of all the transactions involved by the competition authorities, i.e. Dong's purchase of shares in Elsam and Energi E2 as well as Vattenfall's purchase of assets in Elsam and Energi E2. The agreement also requires the approval of the AGMs of the companies concerned.
(2005-06-01 12:28:57)