Energy giant RWE has sold Lynemouth power plant to Energeticky a Prumyslovy holding (EPH), the Czech-based company that owns Eggborough power station, for an undisclosed sum. Lynemouth, a 420MW coal plant in Northumberland, stopped generating in December under environmental rules but is due to be converted to burn wood pellets and reopen within about 18 months. Neil O’Hara, of EPH’s UK subsidiary, said it would work with the team at Lynemouth to try to reach a final investment decision on the project within the next month or two and believed it would “achieve its ambitions”. However, he cautioned it was “working under tight time constraints and challenging foreign exchange conditions”. The economics of the project hinge on a subsidy contract awarded by the Government in April 2014, at which time Lynemouth was expected to be converted by the end of 2015 and receive subsidies for the power it generated until 2027. However, the project only won state aid approval from the European Commission last month, eating into the value of the contract.
Telegraph 7th Jan 2016 read more »