European Investment Bank and POWEO Toul Production S.A.S. agree a finance contract for the construction of a Combined-Cycle Gas Turbine (CCGT) power plant at Toul, fully guaranteed by VERBUND AG.
The European Investment Bank and POWEO Toul Production S.A.S, an indirect 100% subsidiary of VERBUND AG, announce that they have signed a EUR 165 million finance contract for the construction and operation of a 413 MW Combined-Cycle Gas Turbine (CCGT) power plant located at Toul in the east of France.
Due to the deployment of advanced gas-fired combined-cycle technology, the project will specifically serve to:
- provide efficient electricity generation with a lower environmental impact than any other type of conventional thermal power stations;
- increase energy security and differentiate power generation sources at national and European level;
- enhance market competition, differentiating sources of supply and meeting the demand for electricity in France and neighbouring countries.
The future plant will be located within the boundaries of the Croix de Metz industrial zone, located on the outskirts of Toul and adjacent to the high-voltage substation which facilitates a straightforward electrical connection to the transmission grid.
Mr Philippe de Fontaine Vive, EIB Vice-President, stated: “The EIB is pleased to support a new entrant in the French electricity generation sector and investments to ensure security of electricity supply and diversification of energy sources.”
This loan ties in with the EIB’s ongoing priority action in support of sustainable, competitive and secure energy – an objective for which the EIB lent EUR 714 million in France in 2010 and in Europe and partner countries EUR 18 billion.
Mr Andreas Wollein, VERBUND AG Director, Head of Group Finance and Investor Relations, remarked: “We are pleased that we have completed this transaction and funded the second CCGT in the French electricity market at Toul. The construction of the power plant strengthens the position of POWEO Production as an independent power producer and adds substantial value to VERBUND’s growth strategy abroad.”
Note for editors:
EIB
The European Investment Bank is the EU’s long-term financing institution. By mobilising its expertise and resources in support of quality projects that contribute to achieving the EU’s objectives, the EIB is building the future of Europe and its partners. Founded in 1958 under the Treaty of Rome establishing the European Communities, the EIB operates as a bank, raising the bulk of its funds on the capital markets on advantageous terms that it then passes on to its borrowers. Its shareholders are the EU Member States. In 2010, the EIB lent EUR 72 billion in support of Europe’s and partner countries economy.
VERBUND AG
VERBUND is Austria’s leading electricity company and one of the leading hydro power producers in Europe. In 2009, the company achieved an annual turnover of EUR 3.5 billion with 2 800 employees. In Austria, VERBUND operates in the areas of generation, transmission, trade and retail. Outside Austria the company is active in generation and trade in more than 15 countries and is consistently expanding its role as an international hydropower player. Since 1988 VERBUND shares have been listed on stock exchanges (Vienna, Frankfurt, London), and 51% of the share capital is owned by the Republic of Austria. For more information please visit: www.verbund.com.