German Chancellor Merkel launches ground-breaking for Vattenfall’s CO2-free lignite power plant

German Federal Chancellor Dr Angela Merkel and Matthias Platzeck, Premier of the German state of Brandenburg, today officially launched the construction of Vattenfall’s CO2-free lignite power plant that is to be the first of its kind worldwide.

”Climate Change is a reality we have to face. It entails risks that call for decisive action from industry and economy alike. As a leading European energy company, we take responsibility. With this investment project we will be paving the way for a new CO2-free technology“, said Lars G. Josefsson, President and CEO of Vattenfall AB. Klaus Rauscher, CEO of Vattenfall Europe AG said: “Vattenfall is the first company that ventures out of the technical laboratory into real life conditions. With the Clean Coal technology we will be safeguarding the environmentally-friendly use of lignite coal for electricity generation for a long period of time.” Vattenfall is investing EUR 50 million to build a pilot plant for a CO2-free lignite power plant that is scheduled to be operative in 2008. The new power plant at Schwarze Pumpe near Cottbus will be based on the so-called oxyfuel technology. The objective is to capture the carbon dioxide that is generated during the electricity generation process and liquefy it to be able to transport it to the storage locations. More information is available at: www.vattenfall.com/co2free Pictures in high resolution are available at: www.vattenfall.com -> select “News & Comments” -> Press Image Bank / Current Events For further information, please contact: Martin May, Vice President Media Relations, telephone: +46-(0)8-739 52 70. Geraldine Schroeder, Media Relations, Vattenfall Europe AG, telephone: +49-(0)30-81 82 23 20. From Vattenfall's Press Office, telephone: +46 (0)8-739 50 10.