Vattenfall acquires CHP and wind power capacity in Denmark

Vattenfall and the Danish power company Dong have concluded an agreement under which Vattenfall will establish a significant presence in the CHP and wind power sectors in Denmark.

According to the agreement, Vattenfall will take over approximately 24 per cent of the generation capacity of Elsam/E2 (excluding the Avedöre II power station, where Vattenfall’s holding will be transferred to Dong/Elsam/E2). In exchange for these assets, Dong will take over Vattenfall’s 35.3 per cent holding in Elsam. “This structure will ensure that we acquire new competence and greater resources in the Nordic operations so that we can continue the development of environment-friendly, sustainable energy solutions such as wind power, bioenergy and the reduction of carbon dioxide emissions,” says Vattenfall’s President and CEO, Lars G. Josefsson. “We are very pleased that the agreement is now in place. Our move into the CHP and wind power sectors in Denmark represents an important strategic investment in our Nordic operations.” Vattenfall will take over the Nordjyllandsværket power plant in Ålborg, the Fynsverket plant in Odense and the Amagerverket plant in Amager, as well as plants in Helsingör and Hilleröd. These power plants are both coal- and gas-fired. Vattenfall will also take over Elsam’s on-shore wind power assets and 60 per cent of the Horns rev wind farm. “The Danish market will be handled by our Nordic organisation under the management of Senior Executive Vice President Hans von Uthmann, head of Vattenfall Nordic. We will need all the Danish personnel who now work in the plants we have acquired in Denmark, so the takeover will not lead to any redundancies,” says Lars G. Josefsson. The distribution in detail of the assets will be carried out during the summer and autumn. In connection with that, Vattenfall will decide the location of head office for the Danish operations. The agreement is subject to the approval of all the transactions involved by the competition authorities, i.e. Dong’s purchase of shares in Elsam and Energi E2 as well as Vattenfall’s purchase of assets in Elsam and Energi E2. The agreement also requires the approval of the AGMs of the companies concerned. Conference call International media are welcome to participate in a conference call held in English for investors and financial analysts starting at 15:30h. Please call one of the numbers listed below shortly before 15:30h if you intend to participate in the conference call +44 (0) 20 7107 0611 (UK) +46 (0)8 5069 2105 (Sweden) +45 80 883140 (Denmark) +33 (0)1 7070 0543 (France) +49 (0) 69 2 22220593 (Germany) A replay will be available 1 hour after the conference call for 72 hrs. To access the replay please dial +44 207 108 6233 (Number in UK) and enter the ID 296 followed by the # sign. For further information, please contact: Lars G. Josefsson, President and CEO of Vattenfall AB, telephone: +46-8-739 50 05. Hans von Uthmann, Senior Executive Vice President of Vattenfall AB and Head of Vattenfall Nordic, telephone: 08-739 50 74. From Vattenfall’s Press Office, telephone 08-739 50 10.