DONG Energy has decided to upgrade Kyndby Power Station and the gas turbine at Masnedø CHP Plant.The total costs associated with the upgrading work are around DKK 200 million.
At the same time, DONG Energy and Energinet.dk have concluded a five-year agreement under which Kyndby Power Station and the gas turbine at Masnedø CHP Plant will continue to function as emergency and peak load facilities for Zealand.Energinet.dk is able to require DONG Energy to start up electricity generation at the power stations at short notice in the event of major outages at other power stations or grid interruptions.
Energinet.dk pays a total of approx. DKK 185 million per year of service. The agreement is basically 5-year, but Energinet.dk has the option to terminate the agreement before the end, no sooner than after 3 years, for an amount of DKK 85 million per year.
Kyndby Power Station and Masnedø CHP Plant are located in Hornsherred and on the island of Masnedø in the channel of Storstrømmen respectively. The two plants are operated as one plant, as Masnedø CHP Plant can be controlled from Kyndby Power Station, and consist of a total of seven units in a combination of gas turbines and a diesel generating set with a total generating capacity of around 720 MW of electricity.
The information provided in this announcement does not change the previous financial guidance for the 2010 financial year or the announced expected investment level.
For further information, contact:
Media Relations
Andreas Krog
+45 9955 2023
Investor Relations
Morten Hultberg Buchgreitz
+45 9955 9750
DONG Energy is one of the leading energy groups in Northern Europe. We are headquartered in Denmark. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. We have approx. 6,000 employees and generated just under DKK 50 billion (EUR 6.6 billion) in revenue in 2009. For further information, see www.dongenergy.com