EPH reaches agreement with RWE to acquire Lynemouth Power
EP UK Investments Ltd (EP UK), a subsidiary of Czech-headed Energetický a průmyslový holding a.s. (EPH), a leading Central European energy group which also owns the 2 GW Eggborough Power Station, has announced that an agreement has been reached on the purchase of Lynemouth Power Ltd (Lynemouth Power) from Germany-headed RWE Supply & Trading GmbH.
Historically Lynemouth Power was a 420 MW coal-fired power station that has been working with contractors to design a technical solution for full conversion of the power plant to run on biomass. Lynemouth Power received clearance from the EU on December 1, 2015, for its supporting Contract for Difference (CfD) from the UK government.
Post-conversion the station will generate about 2.3 TWh of low carbon electricity per year which is sufficient to power around 700 000 homes or a city the size of Sheffield. The plant will operate at base-load, thus providing schedulable low-carbon electricity.
We are pleased that EPH has made this investment and look forward to working closely with the Lynemouth Power team and its contractors to reach the final investment decision. Whilst we are working under tight time constraints and challenging foreign exchange conditions we believe that with the continuing efforts of the Lynemouth team and the on-going support of the contractors the business will achieve its ambitions, said Neil O’Hara at EP UK in a statement.