Tokyo Gas, Itochu Divest From Belgian CCGT

Japanese utility Tokyo Gas has completed the sale of a stake in a Belgian combined-cycle gas turbine (CCGT) plant, it said October 3.

It finalised the sale of its 26.6% stake in the T-Power plant to Tessenderlo Group, which now fully owns T-Power. Tokyo Gas acquired the 26.66% stake in 2012.

T-Power was a joint venture of four original shareholders: Siemens Project Ventures (20%), TG Europower (Tokyo Gas, 26.66%), Power Kestrel (Itochu 33.33%) and Tessenderlo (20%).

Tessenderlo, a Belgian chemicals manufacturer, announced its decision to buy out the stake of joint venture partners this August. T-Power has been operating a 425 MW CCGT plant on Tessenderlo's premises since June 2011. A tolling agreement was concluded with RWE group for a period of 15 years (until 2026) for the full power production capacity of the plant, which employs about 30 staff.

Tessenderlo said October 2 it has invested €313mn ($360mn) in acquiring the 80% equity it did not already own, including €131mn paid out to vendors and €182mn of net financial debt that it has taken over.  The T-Power plant's 2017 turnover was €69mn and its net profit was €19mn; it is located at the town of Tessenderlo in northeast Belgium.

There could be more of a call on Belgian gas-fired power plants this winter because of the unexpected recent prolongation of shutdowns at two nuclear reactors in the country owned by Engie.

Meanwhile the EU's lending arm, the European Investment Bank (EIB), said October 5 it has agreed to lend €210mn to the 219 MW Northwester2 wind farm offshore Belgium, after late last month approving Belgian government subsidies to it and two other offshore windfarms.  (Photo of T-Power, courtesy of Tessenderlo)