E.ON to expand its renewables activities
Investment of around EUR400m in major Danish offshore wind project
E.ON has won the right to build Rödsand II, a large offshore wind farm south of the island Lolland in Denmark. The Danish Energy Board gave E.ON the green light to build the flagship project, and on completion in 2010 it will be the largest offshore wind farm in E.ON’s portfolio. Rödsand II will have a capacity of around 200MW and will provide enough clean, renewable energy to power 200,000 homes – a full 2 percent of the total Danish power demand. The total investment will be approximately EUR400m. E.ON is already a part owner of the wind farm Rödsand I with a capacity of 160 MW, three kilometers east of the new project.
E.ON CEO Wulf H. Bernotat: “The development of renewables is essential for climate protection and important part of our growth strategy. By 2010 we want to invest about EUR6bn in this sector alone, more than any other European company. Following the acquisition of the wind energy companies Airtricity in the US and E2 Renovables Ibéricas in Spain last year, E.ON is already the seventh largest wind power company worldwide. With the Rödsand offshore project we are reinforcing our global position and expanding our experience and expertise in the field of offshore wind power.”
The Rödsand II project will be developed by E.ON Climate & Renewables. The business was created on 1 January 2008 to steer its renewable energy projects worldwide.
E.ON, in cooperation with Dong, originally won the right to build the Rödsand II project two years ago. However, like many offshore schemes, it was adversely affected by increasing capital costs of several plant items. Given the unfavorable financial conditions, E.ON reluctantly withdrew from the project in December 2007 and the Danish Energy Board started a new tendering process in February of this year. E.ON was once again successful in the new tender process and, with a revised and robust economic case, is now able to progress the project. Most of the preparation work has already been done, which means that the start-up of the wind farm is planned for 2010. Rödsand is a great location to build offshore capacity, given its shallow waters, its proximity to the Danish coast, and its excellent wind resources. This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.