ENGIE to sell its shares in Loy Yang B coal power plant in Australia
ENGIE announces that Alinta Energy’s owner, Chow Tai Fook Enterprises, has today entered into a conditional binding agreement to acquire the total share in the Loy Yang B power station in Australia (ENGIE 70%, Mitsui 30%).
The 1,000 megawatt coal power plant, in Victoria’s Latrobe Valley, provides about 17% of the State’s energy needs and employs 151 people.
Isabelle Kocher, ENGIE Chief Executive Officer, said: “This transaction confirms ENGIE’s positioning in low-carbon generation, energy infrastructures and integrated customer solutions. I would like to thank the Loy Yang B staff for their commitment as we are now going to work with Alinta Energy to ensure a smooth transition.”
After this sale, coal will represent 6% of ENGIE’s global power production capacities, when it represented 13% at the end of 2015.
The proposed transaction is expected to translate into a €666 million reduction in ENGIE’s consolidated net financial debt. It is subject to customary conditions and should complete in Q1 2018 at the latest.
ENGIE remains active in Australia and New Zealand, with 1,800 employees working in low carbon power production (around 1 GW of gross capacities) and the supply of energy (gas and electricity) and services to more than 650,000 customers.