Dong Energy has opted to drop plans to build a 1100 MW gas-fired power plant in the German state of Hesse, blaming fuel prices and current German energy policy for its decision.

The Danish utility is searching a buyer for the rights to build a plant at the same site.
Dong Energy
“We’ve started the sales process for the project rights and aim to find a buyer by the end of this year,” spokeswoman Iris Franco-Fratini told Gas to Power Journal.

The Luwigsau project has already been granted all the necessary approvals and planning permits but Dong was not prepared to go ahead following an unfavourable market evaluation.

Ms Fratini said “it is not possible to operate a gas-fired power plant in Germany in a profitable way under current market conditions, and the outlook is unlikely to change.”

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