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.”