Mátra Power Plant Zrt plans to start building a Ft 200 billion, 400 MW block in 2008, the company announced on Monday.
The new block is necessary because the permit to operate the plant's two 100 MW blocks expires in 2011. The new 400 MW block is expected to come online in 2012, CEO József Valaska said. A condition for building the block, however, is the award by the government of the necessary carbon credits, he added.
The new block will ensure lignite-powered electricity generation at the company until 2050. It will also create 3,000-5,000 new jobs.
The power plant started a retrofit program in 1998, spending Ft 63 billion to increase the capacity of three of its blocks from 200 MW to 212 MW apiece and extend their lifespan until 2018. The plant's two 100 MW blocks were also renovated during the retrofit, but these blocks are not allowed to operate beyond 2011.
Mátra Power Plant had profit of Ft 8.1 billion on revenue of Ft 59 billion in 2005. The company projects falling profit on level revenue this year. German utilities giant RWE owns 51% of the power plant's shares, Energie Baden-Wurttemberg holds 21% and the Hungarian Electricity Works Zrt (MVM) holds 25%.