Enel acquires majority stake in Marcinelle Energie from Duferco

Italian energy company Enel, through its Dutch subsidiary Enel Investment Holding, has acquired 80% of Marcinelle Energie, a special purpose company that is developing a 420MW combined cycle gas turbine plant in the Wallonia region of Belgium, from steel group and major electricity consumer Duferco.

Enel’s estimated investment in the project is E290 million with non-recourse project financing. Work is scheduled to start in July 2008 and is expected to be completed by early 2011. The new plant will generate 2.5TWh a year for the Belgian market. Construction work will be performed by Enel Produzione under a turnkey contract.

With this transaction, Enel Investment Holding (EIH) has replaced Duferco Diversification, a subsidiary of the Duferco Group, as the controlling shareholder of Marcinelle Energie. Duferco Diversification remains a minority shareholder of Marcinelle Energie, with a stake of 20%.

Enel will pay Duferco a total of E32 million for 80% of Marcinelle Energie, of which E19.2 million has already been paid, with the remaining E12.8 million to be settled in two installments in 2009 and 2010.