RWE to acquire Vattenfall’s gas-fired power station Magnum for EUR 500 million

RWE to acquire Vattenfall’s gas-fired power station Magnum for EUR 500 million

(PRESS RELEASE) STOCKHOLM, 2-Jun-2022 — /EuropaWire/ — Vattenfall, a Swedish Government-owned multinational power company, has announced that it divested its gas-fired power station Magnum in Dutch Eemshaven to RWE AG (ETR: RWE), a German multinational energy company, for EUR 500 million. The company will use the proceeds to invest in the energy transition, for example in fossil free energy projects such as offshore wind and district heating and cooling.

Alexander van Ofwegen, Head of Vattenfall’s Dutch Heat operations and CFO Vattenfall in the Netherlands: “In RWE we have found an expert and experienced buyer in the energy field with a clear role for the Magnum plant in the future. This gives employees security and the opportunity to further develop themselves and the power plant. Magnum is a profitable and state-of-the-art gas-fired plant with an important role in the security of supply in the Netherlands.

“At the heart of Vattenfall’s Heat operations is however the district heating and cooling business where Vattenfall is focusing on decarbonising the heat supply to their customers as part of the gas phase out in the Netherlands. The proceeds from the transaction give Vattenfall more resources to invest in the energy transition, such as offshore wind and district heating and cooling,” says Alexander van Ofwegen.

The Magnum gas-fired electricity plant consists of three so-called combined cycle gas turbines, which together have a total capacity of 1,410 MW. Magnum is ‘hydrogen-ready’ and can be made technically suitable to run partly or even completely on hydrogen. Modern, highly flexible gas-fired power plants that can be converted to hydrogen play an important role in the energy transition. They are needed as backup capacity when wind and solar power are not sufficiently available.

The agreement also includes a solar park with a capacity of 5.6 MW. The solar park with around 18,000 solar panels is located on the terrain of the Magnum plant.

According to the agreement with RWE, all Magnum employees will be transferred to the new owner and preparations will be made for a smooth transition of employees and operational matters to the new owner in the coming months. The deal is subject to the advice of the workers council.

For more information, contact:
Vattenfall’s Press Office, tel.: +46 8 739 50 10, press@vattenfall.com

SOURCE: Vattenfall AB