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Eon to sell Belgian plant to German Pellets

August 18, 2015 — German utility Eon has agreed to sell its Belgium 556MW Langerlo coal-fired power plant to wood pellet producer German Pellets.


August 18, 2015
By Argus Media

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A share sale and purchase agreement has been signed with German Pellets, Eon stated. Eon expects to close the deal in the coming months. The utility was unable to comment on the financial terms.

German Pellets plans to convert the power plant to burn biomass, Eon said.

Eon had planned to convert the coal-fired plant into a 400MW wood pellet-fuelled biomass plant but decided to sell it instead late last year.

German Pellets started construction last month on the second phase of its pellet plant at Urania in Louisiana. When this phase is completed, German Pellets will have a nameplate capacity in the U.S. of around 1.7mn t/yr, with a planned utilization of about 87pc.

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Biomass companies have made stronger moves towards vertical integration over the past year. U.K. utility Drax’s pellet plants in the U.S. became operational, while pellet producers have shown a greater interest in power plants, in order to avoid the problem of matching up supply and demand in the right timeframes.

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