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Ørsted to sell stake in 870-MW gas-fired project in the Netherlands


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Ørsted to sell stake in 870-MW gas-fired project in the Netherlands

Ørsted A/S agreed to sell its 50% ownership interest in the 870-MW Enecogen gas-fired facility in Rotterdam, the Netherlands, to a subsidiary of Castleton Commodities International LLC, according to a June 12 news release.

Eneco and Ørsted each held 50% ownership in the facility prior to the proposed transaction.

"The divestment is a step in Ørsted's strategy to divest non-core assets and focus entirely on green energy. We've been very satisfied with the operation of the power plant and our partnership with Eneco, and it's been important for us to find a buyer who'll be able to continue the good cooperation with Eneco and the employees at Enecogen," said Jasper Vis, Ørsted's country manager in the Netherlands.

Ørsted is headquartered in Denmark and the Enecogen plant was its last power plant holding outside of its home country. The remaining 50% of the plant is owned by Eneco Group, a collection of Dutch municipalities.

Within Denmark, Ørsted owns and operates seven combined heat and power plants, two heat backup plants and one power backup plant. According to the news release, most of the combined heat and power facilities have already been converted or are being converted to run on sustainable biomass.

With the conversion of the power plants, combined with the boom in the company's offshore wind farm business, Ørsted's generation portfolio has been running on 64% by the end of 2017. The company targets to reach 95% renewable energy dependence and total coal phaseout by 2023.

Castleton Commodities, headquartered in Connecticut, invests in physical power generation, natural gas and midstream assets, as well as related physical and financial commodities. Among its current holdings is a 426-MW gas-fired plant in the Netherlands.

The transaction is expected to close in the third quarter of 2018, subject to customary conditions.