RWE Generation acquire King's Lynn Power Station in a deal worth £105 million

Lynn Power Station has been sold to a German utilities company in a deal worth £105 million, it has been announced.

RWE Generation has acquired the gas-fired combined cycle power plant (CCGT) from UK energy supplier Centrica.

The acquisition includes RWE taking on more than 30 employees on the site.

An extensive technical update was completed last month, where the plant has been equipped with a state-of-the-art new gas turbine. The generator, steam turbine and other components have all been comprehensively overhauled. The highly flexible plant has an efficiency of 57 percent.

According to a statement by RWE, the Lynn plant, which has a capacity of 382 megawatts, will receive reliable, stable capacity payments until 2035 on the basis of a 15-year contract in the British capacity market, which starts in October 2020.

Roger Miesen, CEO of RWE Generation, said: "The acquisition of Lynn power station strengthens our position as one of the largest operators of gas-fired power plants in Europe.

"We also reinforce our engagement in the attractive UK generation market. As a key enabler of security of supply, gas plays a key role in the transformation to a low carbon energy system."

The multi-million transaction is expected to be completed in the first quarter of 2020.

Tom Glover, country chair for RWE in the UK, said: "We are proud that we were able to succeed in acquiring this asset and the expert staff.

"King's Lynn, as a highly flexible and efficient combined cycle power plant, fits perfectly with our existing portfolio of gas and renewable power generation."

With the acquisition of Lynn, the existing RWE gas portfolio in the UK reaches a total of 7.2 gigawatts. This makes RWE Generation one of the largest operators of gas-fired power stations in the UK.

RWE Generation has highly efficient power plants in Germany, the UK and the Netherlands, and employs approximately 3,100 people. It uses gas, hard coal, hydro power and biomass to generate electricity.

The company’s gas fleet is the fourth largest in Europe. Gas is becoming increasingly important as a bridge to the age of renewables. The company banks on biomass, particularly in the Netherlands – and is converting two coal-fired power stations so that it can use this CO2-neutral energy source.

RWE also has hydro power plants in many core markets.