The 810 MW Rijnmond Energie combined cycle gas turbine power plant located in Rotterdam has been authorised for sale after enforcement proceedings commenced.
The plant comprises two natural gas-fired Siemens V94.3A2 (SGT5 4000F) turbines with approximately 70,000 operating hours per unit, two heat recovery steam generators and one Alstom steam turbine in a 2 GT x 2 HRSG x 1 ST configuration operating at 50 per cent efficiency.
The plant commenced operations in 2004 and is presently undergoing mothballing preservation measures as a result of the negative spark spread environment for gas fired assets in the Dutch market.
With a nominal 25 year service life and a minimum operating life of 200,000 hours, the plant has considerable future operational capacity and has been fully maintained in accordance with the manufacturer’s maintenance programme. The plant is currently uncontracted (ie it has no forward power contract commitments) giving a buyer complete commercial optionality.
The sellers believe the plant will be of significant interest to trade and financial buyers who foresee medium and long term commercial opportunities for the asset as a generator in the Dutch and/or North West European electricity markets, with opportunities for flexibility modifications or more fundamental redevelopment.
In an email statement they added that, “Alternatively, it may be attractive as a relocation play whereby the plant would be dismantled and recommissioned in an alternative country or region.”
The sale of the plant and related assets (including the ground lease) will be via a public auction to be held on 9 October 2015.
Peter Morgan, a partner at Talbot Hughes McKillop LLP, which is marketing the asset, said: “We expect to see strong interest from a broad range of potential buyers, particularly from trade and financial parties who foresee medium and long term commercial opportunities for this asset in the Dutch and neighbouring power markets. Whilst the plant has considerable future operational capacity in its current location, it would also be attractive to a buyer who may seek to relocate it to an alternative region.”
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