Vattenfall exits fossil fuel generation in Denmark, sells Nordjylland plant

Written By: Tracy Dawson Roses
June 24, 2015

Vattenfall

On June 24, Vattenfall announced the sale of its Nordjylland CHP-plant, completing the sale of its fossil assets in Denmark in line with its strategy to focus on a more sustainable energy production. Denmark remains a core Vattenfall market for renewable energy. District heating company Aalborg Forsyning will take over Nordjylland Power station as of 31 December 2015.

The enterprise value is DKK 823 million ($124 million), corresponding to approximately SEK 1 billion. The combined sales sum consists of DKK 725 million ($109 million) or approximately SEK 900 million in cash consideration, takeover of decommissioning obligations and environmental liabilities.

The coal-fired Nordjylland Power Station unit 3 has an installed capacity of 410 MW of electricity and 490MJ/s of district heating. Prior to the sale of Nordjylland Power Station Vattenfall has divested two other coal fired plants; Amager Power Station in 2013 and Fyn Power Station in 2014.

Ingrid Bonde, Vattenfall’s Chief Financial Officer and Deputy Chief Executive Officer commented:

“With the divestment in Denmark, Vattenfall has completed an important step in its transition from fossil fuels into renewable energies.”

Denmark remains a core market for renewable energy production for Vattenfall. Vattenfall is the largest owner and producer of onshore wind power in Denmark, with 262 wind turbines in 37 wind farms. Vattenfall also has research & development operations as well as a trading unit and a transit harbor in Denmark.