EVN share increases: EVN ends coal-fired power generation

After the early shutdown of the Dürnrohr power plant in Lower Austria in summer 2019, the withdrawal of EVN from the German coal-fired power plant Walsum 10 will take effect on Thursday, EVN announced in the evening. With the closing of the contracts for the exit from Walsum, EVN is relinquishing its 49 percent stake in the plant to co-partner Steag. The share in the EVN group turnover was less than three percent. At the same time, EVN’s electricity purchase contract from the power plant ends. With the final departure from coal-based power generation, EVN reduced its CO2 emissions from energy production by three quarters. The transaction will not have any negative impact on earnings in the 2020/21 financial year. The parties have agreed not to disclose the details of the transaction. EVN joined the Walsum planning in 2005. The coal-fired power plant near Duisburg had massive start-up problems. It should originally have gone into operation at the beginning of 2010, the foundation stone was laid in November 2006. Then there were problems with a steel supplied by Hitachi. Attempts to repair failed, the utility company and Hitachi decided to install a new boiler with a different steel. The investment costs for Walsum climbed over the billion mark, EVN and Steag received a total of 200 million euros in compensation for the deficiencies from an arbitration tribunal. Commercial operation did not take place until the end of 2013. According to media reports, it had been known since August of this year that EVN was negotiating with project partner Steag and the financing banks about the early withdrawal from the German hard coal power plant project Walsum 10 as a further measure to reduce specific CO2 emissions. In Vienna, EVN shares ultimately gained 3.05 percent to EUR 23.65. sp ISIN AT0000741053 WEB http://www.evn.at