RWE has reached an agreement to sell a coal-fired power plant in the UK to EPH, a central European energy group.
EP UK Investments Ltd., a subsidiary of EPH, will buy the 420 MW Lynemouth power plant in northern England from RWE Supply & trading for an undisclosed sum. The deal is part of RWE’s strategy to reduce debt and restructure its business.
The Lynemouth power plant is operated by Lynemouth Power, which is currently working with contractors to design a technical solution for a full conversion to biomass firing.
In December 2015 the European Commission approved Lynemouth’s plans to convert to biomass with the support of state subsidies known as contracts for difference (CfD).
RWE said Lynemouth intends to proceed with the full biomass conversion. The German firm bought the power plant in 2012.
