Centrica plugs into 400 megawatts of Dutch power

Centrica plc today announced that it has signed an agreement giving it the rights to the entire output of a planned 400 megawatt power station to be built by InterGen in the Netherlands. The tolling arrangement will run for 15 years with an option to extend for a further five.

InterGen is intending to build, own and operate the proposed gas-fired plant, “Rijnmond 2” near Rotterdam, on the same site as its existing 800 MW gas fired plant “Rijnmond 1”.

InterGen has gone out to tender on an engineering, procurement and construction contract which is scheduled to complete by September 2009 with first output expected in 2009 - 10.

Under the contract signed by Centrica and InterGen, once construction is complete, Centrica would supply the gas required to fuel the plant and would have the rights to the entire output.

In the Netherlands Centrica already owns Oxxio, a gas and electricity supplier with approximately 640,000 customers. The Rijnmond 2 plant would be a valuable addition to this business; its power output would be equivalent to approximately 80 per cent of Oxxio’s current peak electricity demand.

Centrica views the Netherlands as a key market, given its proximity to the UK, which is being liberalised more quickly than elsewhere in Continental Europe.

Jake Ulrich, Centrica’s managing director of Europe, said:

“Rijnmond 2 will be a highly efficient and low cost generation asset to complement our Oxxio business.

“This deal strengthens our business partnership with InterGen and builds on our current tolling agreement with their 860MW capacity power station at Spalding in the UK.”