EMFESZ obtains preliminary approval for construction of a 2,400 MW gas-fired power plant
London, 31st May, 2007 – EMFESZ Ltd, the Hungarian energy trading and service company, is pleased to announce that it has received preliminary permits from the Hungarian Energy Office and is submitting a final round of permit requests to build a 2,400 MW gas-fired power plant. The power plant, which EMFESZ (“The Company” or “EMFESZ”) expects to become the largest in Hungary, is estimated to be fully completed in 2015.
The project is expected to cost a total of €1.5 bn, and will be implemented in three stages. The plan provisionally approved by the Hungarian government provides that the initial construction of two blocks with a combined capacity of 800 megawatts will be completed by 2011, along with infrastructure such as gas pipelines and power lines designed to support the eventual 2,400 MW facility. Subsequently, two further 800 MW units could be constructed within the following years, depending on demand.
After the final approval EMFESZ is planning to announce a tender for a main contractor in September or October this year, and aims to sign a turnkey contract by late 2008.
The Power Plant will be located in North-Eastern Hungary near the Tisza River, close to the border of Ukraine and in close proximity to an existing natural gas pipeline, running from Ukraine, and to the underutilized 750 kV power line which connects the Ukrainian border with Central Hungary. The exact location will be determined when the final environmental permit is granted.
The Company estimates that the efficiency rate of the plant will reach 58%, significantly higher than the 28–38% achieved by most Hungarian power plants. The development plan is designed to keep construction costs well below the European average of €1 per Watt.
István Góczi, the Managing Director of EMFESZ, said:
“The low costs and high efficiency of the project will be passed through in the price of electricity we produce. We expect it to be the cheapest source of electricity in Hungary after the Paks Nuclear Plant.”
“The Power Plant will use natural gas imported by RosUkrEnergo from Central Asia, mainly Turkmenistan, and supplied to Hungary via Russia and Ukraine. EMFESZ is planning to build a dedicated gas pipeline connecting the power plant to Ukraine's natural gas pipeline system. The Company will also build an underground storage facility to store up to one month's gas supply as a buffer.”
Further commenting on the project, István Góczi said:
“This is an ambitious and exciting project which will introduce EMFESZ to the energy generation market. While aiming to make a serious effort to boost Hungary’s energy generating capacity, we also aim to reduce its environmental impact by using modern, efficient turbines. The waste heat generated at the Power Station will be suitable to be utilised by energy-intensive industries, thus helping the regional economy. We believe that the Hungarian and East European economy will greatly benefit from this project.”
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Group DF
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