New power plant on the Maasvlakte. Clean, reliable, and affordable energy from coal and biomass. Benelux

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1 New power plant on the Maasvlakte Clean, reliable, and affordable energy from coal and biomass Benelux

2 Electricity: demand and production The Netherlands needs more and more electricity. Consumption has risen between one and two percent annually over the past years and this is expected to continue in the decades ahead. The rate of new capacity construction since 2000 has only been limited, so that imports now make up almost a quarter of national requirements. This has made The Netherlands dependent for energy on neighbours such as Belgium, France, and Germany. This was no problem in the past when these countries had surplus capacity. However, this is no longer the case and to prevent shortfall Dutch domestic demand for electricity must come from new domestic capacity. With a number of outdated power stations set to close over the next several years the situation is becoming more urgent and not only in The Netherlands but also in the rest of Western Europe. This makes new production crucial, both from the angles of reduced imports and growing demand, plus replacement of the old power stations with new capacity. Government policy The Dutch government has outlined policy to ensure energy supplies, as set out in Energy Reports 2005, 2008 and others. According to the reports, the building of new power plants is inevitable. Energy Report 2005 also presents explicit vision on coal: Coal as fuel deserves a fresh look, particularly with an eye to the level of security of supply. [...] Looking to the future it will be possible to capture and store CO 2 emissions from coal-fired power plants. The willingness of the energy industry to act as co-investors in demonstration projects for CO 2 storage is an important step. The 2008 report takes an even more robust stance on the need for coal-fired power stations whereby the Dutch government s position is that coal-fired power stations do not clash with its new environmental and climate policy. This position is backed by authoritative international bodies including the International Energy Agency (IEA) and the Organisation for Economic Cooperation and Development (OECD). Both the IEA and the OECD stress that to meet upward demand alongside sustainable energy sources - investment must also take in fossil fuel generating technology; and this will be needed until such time as sufficient sustainable sources have been developed to meet demand. Sustainable energy The Netherlands aims to comply with the Kyoto protocol. To realise the sustainable energy management set out under Kyoto, Holland will need more energy from sustainable sources and, in turn, this will reduce greenhouse gas emissions. Meeting these aims and maintaining security of supply will need a mass of technical and economical breakthroughs, for instance around the capture of CO 2. E.ON will actively contribute to sustainable energy supplies. To this end in 2006 E.ON started up a worldwide innovation programme to accelerate development of sustainable methods of production including wind and biogas, as well as energy products from fossil fuels which are low in CO 2. In fact, cutting CO 2 emissions is one of the key principles of the programme. CCS (Carbon Capture & Storage) is a spearhead item for E.ON Benelux. In April 2008, E.ON Benelux and TNO went operational with a test plant for the capture of CO 2 from flue gases at the existing Maasvlakte power station. At the official opening of this unit, E.ON Benelux announced its aim of being the most important industrial partner in the second part of the national CATO project. The CATO project is Holland s most leading initiative around CCS.

3 E.ON Benelux is also a partner in the Rotterdam Climate Initiative. Worldwide E.ON is involved in more than forty projects supporting development of technology to reduce CO 2 emissions. In the period between 2008 and the end of 2010, E.ON will invest six billion Euros in sustainable energy. New power station E.ON is expanding Dutch production capacity with a new, 1,100 MW, coal-fired power plant. This will provide some seven percent of Holland s electricity requirements. Investment in the project will exceed 1.2 billion. This slots in with E.ON s growth strategy in the Benelux and demonstrates the company s aim to optimally mesh economic and environmental imperatives. As the price of coal is less sensitive than gas to world market price swings, coal-fired power stations will also enable lower and more stable bills for commercial and home users. Moreover, gas-fired power stations generate seventy percent of The Netherlands electricity. This preference dates from the time when the country could deploy its own gas reserves. With the reserves now becoming exhausted gas has to be imported from less politically stable countries like Russia and Iran. Coal, biomass, and CO 2 E.ON is building the new power station based on powder-coal technology with supercritical steam parameters. Currently this generating method is the only technology with proven reliability that can be applied on an industrial scale - in contrast with coal gasification which is still at the experimental stage. The new power station s energy return will be some 46 percent which is twenty percent higher than current Dutch power stations. As a result of this, CO 2 emissions per kilowatt-hour will also be reduced by some twenty percent. As with the current operation, E.ON will use biomass as fuel in the new power station. Alongside studies into the maximum percentage of biomass that can be used, E.ON is also researching further reduction of CO 2 emissions by supplying heat to market gardeners and other industrial clients. Preparations are underway for capturing CO 2 at the new power station. As noted E.ON is now carrying out research in this technology at various locations around the world. This includes the Maasvlakte. Capturing can be put into operation as soon as there is firm evidence that the technology works on an industrial scale and is economically viable.

4 Advantages of the Maasvlakte E.ON already has a 1,040 MW coal-fired power station on the Maasvlakte. The new power station will be built on the same site. The Maasvlakte offers a number of substantial advantages for power stations. The location adjacent to a deep waterway offers good potential for shipping-in bulk supplies of coal and biomass via the Port of Rotterdam. There are also major cost benefits for a power station compared with several locations in the Dutch or German hinterland. The Maasvlakte also provides good potential for mutual economic benefits in technical collaboration with existing and new industrial operations. An example of this is the supply of residual heat to evaporate liquid gas at the GATE gas terminal. Another user of residual heat is the Happy Shrimp Farm, which cultivates tropical shrimp. The Maasvlakte area also has a good logistical infrastructure, with links to both the electricity grid and the highways network. Availability of cooling water is vital for electricity generating power stations. The proximity of the North Sea means no shortage of this asset, so construction of cooling towers is not needed. BioMass haven 8211 haven 8210 Europahaven Mississippihaven Hoek van Holland N15 Nieuwe Waterweg N218 N57 14 A A4 Kethelplein A20 Nieuwe Maas 17 Botlektunnel 8 16 Oude Maas A Amste Den H 10 A13 11 Rott U Beneluxtu 17 Beneluxplein A Dor Gorin

5 Specificaties Nieuwe Centrale Fuel: Coal and biomass Technology: Powder coal with supercritical steam parameters Capacity: 1,100 MW Gross Yield: Approx. 46% Investment: More than 1.2 billion Euros Annual production: 7.5 TWh Cooling: Seawater Waste gas treatment: DeNOx and flue gas desulphurization, electrostatic filters for capture of fine dust, preparation for CO 2 -capture Market area: The Netherlands and north-west Europe Clients: E.ON Benelux s current and new business and private customers. In the coming years, E.ON expects to increase the number of customers in the Dutch and Belgian markets. Location: Maasvlakte, Rotterdam

6 Planning Submit EIA December 2006 Environmental licence granted November 2007 Building permit granted April 2008 Start construction April 2008 Start construction boiler January 2010 Start-up operations 2012 Licenses Construction of a power station is preceded by an intensive process of obtaining licences. Initially the main focus is the environmental impact of the power station as determined in the Environmental Impact Assessment (EIA). E.ON drafts the EIA which is vetted by an independent committee, with public consultation. The EIA procedure for MPP3 started in early 2006 and was completed in the summer of This was followed by applications for the environmental and building licences. Here again the public can voice its opinions. The environmental licences were granted in November 2007 by the Directorate for Public Works and Water Management, and the Zuid-Holland provincial authorities. The City of Rotterdam granted the building permit in April The environmental licence must be granted before the building permit can be obtained. Appeals by environmental bodies against the granting of environmental licences by the Council of State, did not impact on the progress of the building permit procedure or the start of construction. Effective April 2008 all licences had been granted and the way was clear for construction to start.

7 Information E.ON Benelux makes a priority of transparency and open communication with stakeholders in Holland. Construction of a power plant may prompt questions or expectations which need explanation and information. Throughout the licensing and construction processes E.ON Benelux will actively seek contact with stakeholders and interested parties. To this end meetings will be held with local authorities and special interest groups will be invited to on-site briefings. In addition a special dossier has been added to the website This includes all current information on the construction of the new power station. For more information please contact the Communication Department of the Maasvlakte Power Plant 3 project, phone +31(0) E.ON Benelux b.v. Capelseweg AX Rotterdam nl

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