Entergy Corp has sold 100 per cent of its 1200 MW power plant at Saltend near Hull, Yorkshire, to Calpine Corp. The deal, worth around $800 million, is subject to the completion of certain conditions which are expected to be met within weeks. It comes with a 15 year heat and power cogeneration agreement with a BP chemical works. BP will also supply gas to the plant under a 15 year term. Excess capacity from the plant will be sold to the UK grid. The Saltend plant began commercial operations in November 2000.
Entergy’s European strategy remains far from clear. The company continues to own and operate an 800 MW gas-fired power plant at Damhead Creek, roughly 48km from London. This plant entered commercial service in February 2001. Entergy claims that Damhead Creek is a key part of its European strategy as a complement to Entergy-Koch marketing and trading activities in the England and Wales markets.
However the company has also said that it will continue to evaluate the European power and gas markets, to which it is convinced it can apply the market-driven approach it uses in North America.
With Damhead Creek, Entergy still has interests in more than 4400 MW in Europe. This includes two projects in Spain with a combined capacity of 2 000 MW, an 800 MW scheme in Italy and the rehabilitation of an 840 MW plant in Bulgaria.
The Saltend facility entered commercial operations less than a year ago.
