ContourGlobal abandons 500-MW Kosovo coal plant project

London — The 500-MW Kosovo e Re coal plant project cannot go forward, independent power generator ContourGlobal said Tuesday.

An impairment of $12 million had been recognized against the project while recoverable costs of $22 million remained on the balance sheet, CG said.

"The political situation in Kosovo since July, the recent formation of a government led by a Prime Minister publicly opposed to the project and the government's inaction have made it impossible for the project to meet the required milestones by its project completion date," the generator said.

Kosovo was to have been ContourGlobal's last coal development project. With only one majority-controlled coal project left in its 107 power plant portfolio, "we are increasingly reducing our carbon emission intensity," it said.

"The reality and paradoxical nature of the Kosovo project was that it would dramatically reduce CO2 emissions in the country (38%), Particulate matter (93%), sulfur oxides (85%) and nitrogen oxides (93%)," CG said.

The UK-headquartered company has 4.8 GW of capacity across 21 countries.

Its thermal generation business (2.5 GW) includes the 900-MW Maritsa East 3 coal plant in Bulgaria and the 800-MW Arrubal CCGT in Spain.

Carbon emission costs in 2019 of $151.2 million were up from $138.9 million in 2018, CG data showed. These related mainly to Maritsa. The costs are passed through to the offtaker, the generator said.

CG's renewable energy business has hydro, solar, wind and biogas plants totaling 1.8 GW, with significant wind capacity in Austria, and solar in Italy and Spain.

The company said its diverse operational experience matched future market needs.

"Electricity supply requires over $1.5 trillion of annual investment over the next decade. Most of this investment will be in renewable generation and low-carbon base-load generation such as natural gas and combined heat and power," it said.