Vattenfall Europe AG (Vattenfall Europe), an energy company, will continue its plan to construct a 1,645 megawatts (MW) coal-fired power plant at Hamburg, Germany amid current negotiations with the city regarding environmental permits. The plant, to be located on the Elbe river, is facing opposition from the Green Party, which became part of the city state's government together with the Conservatives in 2008, after the latter had provided initial authorization in 2007.

Tuomo Hatakka, Vattenfall Europe’s chief executive, told Reuters “We assume that we will be able to build Moorburg (name of the suburb where the plant will be located). The focus of the talks is on the legal situation related to water usage. Moorburg will be good for Hamburg and for Germany.”

Coal plants release huge quantities of carbon dioxide, which is harmful to the climate. Environmentalists are worried about the condition of wildlife if warm water from the station is released back into the Elbe river once it is utilized for cooling.

Hamburg’s growing port requires secure power supplies and Germany relies on coal burning for 50% of its power requirements.

The company stated that the present limitations issued by the Greens on the future operation of the station to be constructed for a 2012 opening would make the economics of the project impractical.

Hatakka stated that he could not provide probable deadlines or dates for salvaging the proposal or terminating it, however he said that his firm would hold Hamburg accountable.

A probable deal could require the company to construct a cooling tower for water instead of conveying it through internal cooling systems at the station.