EVN Share Finally Rise: EVN Ends Coal Power Generation – Exiting Walsum 10 in Germany | 01/10/21

Lower Austrian power supplier EVN completely ends coal-fired power generation.

After the early closure of the Dürnrohr power plant in Lower Austria in the summer of 2019, EVN’s withdrawal from the Walsum 10 coal power plant will begin on Thursday, EVN announced in the evening.

With the Walsums exit contracts in place, EVN is ceding its 49 percent stake in the plant to partner Steag. The share in the turnover of the EVN group was less than three percent. At the same time, EVN’s electricity purchase contract from the power plant expires. With the eventual move away from coal-based power generation, EVN has reduced CO2 emissions from power production by three-quarters. The transaction will not have any negative impact on earnings in the 2020/21 financial year. The parties agreed not to disclose the details of the deal.

EVN joined Walsum’s planning in 2005. The coal-fired power plant near Duisburg faced massive start-up problems. It was supposed to start operation at the beginning of 2010, the foundation stone was laid in November 2006. Then there were problems with the steel supplied by Hitachi. Attempts to repair failed, the utility company and Hitachi decided to install a new boiler with a different steel. Walsum’s investment costs soared to more than 1 billion marks, and EVN and Steag received a total of 200 million euros in compensation for deficiencies from the arbitration panel. Commercial operation did not start until the end of 2013.

According to media reports, since August of this year, it is known that EVN has been negotiating with project partner Steag and financing banks about an early withdrawal from the German Walsum 10 hard coal power project as an additional measure to reduce specific CO2 emissions.

In Vienna, EVN shares eventually rose 3.05 percent to €23.65.

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