Coal news and updates

Dutch coal-tax exemption worth Eur4 billion for new plant owners: Delta

Impending exemptions from the Dutch coal tax for new, more efficient, coal-fired power plants is worth Eur4 billion ($4.24 billion) to the operators of applicable plants, Dutch utility Delta said Tuesday.

Last July, the Dutch government proposed that net efficiency at coal-fired power plants in the Netherlands must be 38% by January 2016 and 40% by July 2017.

Companies that can meet the new standards will no longer pay the Eur14.40/mt coal tax, paid per thousand metric tons of coal burned.

Delta said in a report that owners of more efficient coal-fired plants are set to save a combined Eur4 billion over the lifetime of the plants.

E.ON is set to receive a Eur69.4 million/year tax advantage from its 38%-efficient Maasvlakte 1 and 2 plants and 46%-efficient Maasvlakte 3 plant, Delta said.

RWE is set to experience a Eur68.5 million/year benefit due to its 40%-efficient Amer 9 and 46%-efficient Eemshaven A and B plants.

GDF will save Eur22.9 million/year owing to its 46%-efficient Rotterdam 1 plant, and Vattenfall is to benefit to the tune of Eur18.6 million/year due to its 40%-efficient Hemweg 8 plant.

Delta said the new coal deal is beneficial for companies with newer assets, enabling them to significantly reduce variable costs.

GDF Suez began operations at its new 800-MW coal-fired plant in Maasvlakte in 2014, while E.ON's new 1.1-GW MPP3 plant is currently in startup, transparency data from EEX showed.

RWE and Essent will open their new 1.6-GW plant in Eemshaven during 2015.

The combined carbon dioxide emissions from these new plants will push total Dutch emissions to 40 million tons/year, offsetting progress made in the transition to increased low-carbon generation, Delta said.

Last September, Delta said it may seek compensation from the Dutch government caused by loss of value of its 70% share in the 406-MW Borssele plant.

"We are negatively affected by the proposal; it could raise coal plants in the merit order above gas. This could affect our gas-fired plants, so Delta is looking for compensation there," company spokesman Arendo Schreurs said.

source: http://www.platts.com