21 December, 2015

CEZ takes over Vattenfall's lignite coal mines and TPPs?

Czech energy giant ČEZ has submitted a non-binding offer to acquire Vattenfall’s German brown coal and hydroelectric activities. Sweden-based Vattenfall announced in September that it was selling its German lignite (brown coal) and relate assets as the company was more on renewable energy sources.

ČEZ spokeswoman Barbora Půlpánová said these assets represent an interesting opportunity to expand ČEZ’s business of ČEZ in a neighboring region. “In Europe where coal is still crucial for the overall energy supply, ČEZ has extensive know-how in operation of conventional power plants and of lignite mining, as a bridge technology to more renewable energy sources,” Půlpánová aid in a press release.

ČEZ submitted a non-binding offer for all the assets on sale, including hydropower plants, but declined to divulge more information citing confidentiality agreement.

The sale includes four power plants, five mines and 10 hydroelectric plants.

The power plants are Boxberg, Jänschwalde, Schwarze Pumpe, and Lippendorf Unit R.

Mines in the packing are Jänschwalde, Nochten, Reichwalde, Welzow-Süd, and Cottbus Nord.

The 10 hydroelectric plants cannot be sold separately, without the lignite assets.

ČEZ group is an integrated energy group with operations in a number of Central and Southeastern European countries and Turkey. The largest shareholder of its parent company, ČEZ, a. s., is the CzechRepublic.

Environmental group Greenpeace has expressed interest in the German coal operations of Vattenfall so they could shut the mines down, by 2030, as burning coal is bad for the environment.