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E.ON and a Czech mining company to jointly build coal power plant

German energy utility giant E.ON and Czech mining company Mostecka uhelna spolecnost (MUS) plan to jointly build a €2 billion ($2.75 billion) lignite coal-powered plant in the Czech Republic, the daily Mlada fronta Dnes reported Wednesday.

The paper's website report cited E.ON general manager Wulf Bernotat in saying that E.ON is to provide technology while MUS is to feed the plant its coal. The talks between the two companies should last several months, the report said. The planned power plant would become the first heavy-weight competitor on Czech soil to the Czech state-controlled power- producing giant CEZ.
Earlier talks between MUS and CEZ on a potential joint power plant had failed, the report said. The two Czech energy companies had further fallen out in June after MUS declined to seal a long-term coal delivery contract with its client CEZ. (