Vattenfall closing fossil fuel base in Denmark with divestment

By Editor


Swedish power company Vattenfall is divesting its Nordjylland combined heat and power (CHP) plant. Aalborg Forsyning, the district heating company, will take over the power station by December 31.

Nordjylland-CHP will be the last of Vattenfall’s fossil assets in Denmark that it is selling as part of its strategy to focus on a sustainable energy production.

The value of the project is estimated to be 823 million Danish Krone ($123.274 million). And the combined sales sum is 725 million Danish Krone ($108.704 million) comprising cash consideration, takeover of decommissioning obligations and environmental liabilities, a statement says.

The coal-fired Nordjylland Power Station unit 3 has an installed capacity of 410 megawatts peak and 490 MJ/s of heating.

Vattenfall had divested two other coal-fired units — Amager Power Station in 2013 and Fyn Power Station in 2014 — before it planned to divest Nordjylland Power Station Vattenfall.

Denmark remains a key market for renewable energy production for Vattenfall. The company is the largest owner and producer of onshore wind power in Denmark, with 262 wind turbines in 37 wind farms. Vattenfall also has research & development operations, a trading unit and a transit harbor in Denmark.

The transaction is subject to the approval from relevant authorities, Vattenfall has stated pursuant to the Swedish Securities Market Act.

The country has operations in Sweden, Germany, the Netherlands, Denmark, UK and Finland. It proposes to  create a strong and diversified European energy portfolio while also being environmentally sustainable .

Ajith Kumar S

[email protected]

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