Engie divests share in 1GW Loy Yang B coal-fired plant

The transaction approximately costs $1b.

Enerdata reported that French energy group Engie has signed an agreement with Alinta Energy, owned by Chow Tai Fook Enterprises, to sell its entire share (70%) in the Loy Yang B coal-fired power plant in La Trobe Valley in Victoria (Australia) for an estimated US$1b. Once completed in mid-December 2017, the transaction is expected to reduce Engie's consolidated net financial debt and decrease the share of coal in Engie's global power production capacities down to 6%.

The Loy Yang facility is located in the lignite-rich Latrobe Valley, along with the Hazelwood and Yallourn power plants. It consists of two units with a combined capacity of 1,000 MW, which entered service in 1993 and 1996 and are supplied by the neighbouring Loy Yang lignite open cut mine. The facility provides 17% of Victoria's energy needs. It is run by Engie (70%) in partnership with Mitsui (30%).

This article was originally posted by Enerdata.