Swedish power company Vattenfall has agreed to sell the 1.41GW Magnum gas-fired power station at Eemshaven, the Netherlands to RWE for €500m.

The ownership of the gas-fired power plant will be transferred to RWE on 30 September 2022.

Made up of three combined cycle gas turbines, the Magnum gas-fired power station has been operating since 2013. It is located near RWE’s existing 1.56GW hard coal-and biomass-fired power plant.

Through the acquisition, RWE anticipates to realise comprehensive benefits from sharing local infrastructure of the two plants.

The Magnum gas-fired power station is also hydrogen-ready. It can be technically made suitable to use hydrogen as a fuel by up to 30%.

Furthermore, there could also be the potential of converting the Magnum power plant to use hydrogen as its sole fuel by the end of 2030, said RWE.

RWE generation hydrogen COO Sopna Sury said: “With the acquisition of the power plant in Eemshaven, we are strengthening our Eemshydrogen project cluster. At this site, we want to drive forward the production of low-cost hydrogen at large scale.

Green hydrogen is the key element for decarbonising the industry and thus an important pillar for the success of the energy transition.”

For Vattenfall, the proceeds from the sale will provide more resources for investing in the energy transition. The Swedish firm said that it may invest in fossil free energy projects like offshore wind and district heating and cooling.

Vattenfall Netherlands CFO and Dutch heat operations head Alexander van Ofwegen said: “In RWE we have found an expert and experienced buyer in the energy field with a clear role for the Magnum plant in the future. This gives employees security and the opportunity to further develop themselves and the power plant.

“Magnum is a profitable and state-of-the-art gas-fired plant with an important role in the security of supply in the Netherlands.”

The deal also includes a 5.6MW solar park, which is located on the terrain of the Magnum gas-fired power station.