Chemicals giant Dow Deutschland Anlagengesellschaft has forged an alliance with Germany utility company Energie Baden-Wuerttemberg (EnBW) to develop a combined heat and power unit at the company’s the Stade site in Germany.

The alliance will see the development, construction, and operation of a modern hard coal-fired power plant together with a combined cycle unit with a total output of more than 1000 MW.

Initial feasibility study results are expected during the second half of 2008, marking the first phase of development. An existing plant on the site will continue to supply power and process steam until the new facility is operating.

Dow and EnBW also plan to explore the use of hydrogen – a by-product from the chemical plant’s operations – in the boilers to generate a portion of its requirements CO2 free.