ATLANTA, June 1, 2001 Mirant today announced that it intends to buy a 40 percent stake in the five member Norwegian industrial consortium Industrikraft Midt-Norge (IMN). This venture will move the company closer to its target of more than 10,000 megawatts in Europe by 2005.
Through this venture, Mirant plans to contribute to the building, financing and operating of IMN’s planned combined heat and power plant in Skogn, Norway. The plant will produce electricity and heat energy and will be integrated with a large paper mill. The proposed plant will consist of two natural gas-fired turbines and generate a total capacity of 800 megawatts. Natural gas is to be supplied from nearby gas fields off the coast of Central Norway.
Construction could begin as early as 2002, with anticipated start-up of the first turbine in 2004. Over time, Mirant’s investment is expected to total approximately $80 to 85 million U.S. dollars
“This project allows Mirant to diversify its European portfolio by expanding and developing its operations in Norway and the Scandinavian market,” said Barney Rush, chief executive officer of Mirant’s European business group. “This venture will give us the opportunity to provide efficient power in markets where new generation is needed and work with a strong group of partners who are committed to maintaining the environmental quality of the region and assisting the region’s economic development.”
“This is an important step toward completion of the Skogn project,” said IMN Chairman Thor H. Lobben. “Mirant’s international expertise and experience is important for IMN.”
Mirant intends to buy stakes in IMN from the two industrial companies Elkem and Norske Skog. Following the transaction, both companies would maintain a role but reduce their ownership interests to allow for a new owner with worldwide gas-fired generation experience. After the transaction, the ownership of IMN would be as follows: Mirant 40 percent, Statoil 20 percent, Elkem, Norske Skog, Nord-Trondelag E-Verk and Trondheim Energiverk with 10 percent each.
Mirant is a global competitive energy company with a leading position in both power generation and energy risk management and marketing. With an integrated business model, Mirant develops, constructs, owns and operates power plants and sells wholesale electricity, natural gas and other energy commodities. Headquartered in Atlanta, with 10,000 employees worldwide,
Mirant has extensive operations in North America, Europe, and Asia. Mirant owns or controls more than 20,000 megawatts of electric generation capacity around the world, with another 9,000 megawatts of announced development.
Mirant also controls an extensive natural gas asset base in North America, including transportation, storage and access to approximately 3.7 billion cubic feet per day of gas production.