Onyx coal-fired power plant in Rotterdam closes faster and owner receives €212.5m | Financial issues
Outgoing Minister of State Dylan Yesilgos Zegerios (Economic Affairs and Climate) announced on Tuesday that the plant’s owner, the US investment fund Riverstone, will receive a maximum of €212.5 million for the earlier shutdown and dismantling of the facility. That’s significantly less than Riverstone two years ago, $240 million.
Once all conditions are met, the plant can be closed within two months. It will take a maximum of 3 years to turn off the power plant. With immediate effect, there will be restrictions on coal consumption in Onyx. According to environmental organizations, the power plant is one of the largest emitters in the Netherlands.
Foreign Minister Yesilgos Zegerios, who has been negotiating with Onnyx for some time, says he’s making this decision because a lot of carbon dioxide is released during electricity production with coal. While those emissions must be reduced quickly to achieve climate goals.
Good social plan
The conditions you set for the support Oxyn receives are an “appropriate” social plan for employees who can go to another employer, and the European Commission must also give the green light to shutdown under these circumstances.
Each month Riverstone subsequently shuts down the plant, means the company receives less support.
When the power plant fails, other sources will have to meet the energy demand.
The Onyx coal-fired power plant was commissioned in 2015 and has a capacity of 731 megawatts. Onyx noted a 45% return on the plant, which is listed as one of the most modern, clean and efficient facilities in the world.
With the shutdown of the Onyx coal-fired power plant, the power plant’s annual CO2 emissions will drop from 3 megatons to 0.
I left three power stations
In addition to charcoal, the installation can co-release up to 50% of the biomass.
There is no prospect of phasing out coal at the moment. Three coal-fired power plants are still active, according to the secretary of state. “In the coming years, the remaining three coal-fired power plants will still be needed to supply electricity when there is great demand, for example during periods of little wind and sun,” she says.
The Cabinet also agreed with Onyx that the company would waive previously granted subsidies to shared biomass.
Two offices, KPMG and Mace, respectively examined the subsidies and the state of the power plant “to determine whether the subsidies awarded were not being overcompensated,” according to the state secretary. It’s not very wide, according to Yeşilgöz-Zegerius.
Mace examined the technical condition of the plant and concluded that the plant “could be in operation for a long time”. The benefit is paid in stages.
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