Legal action threatens Dutch coal plants



London (Platts)--15Jan2008

Plans to build a raft of new coal-fired plants in the Netherlands may be
halted if a Dutch environmental group is successful in its lawsuit against the
Netherlands government.

The legal case is being launched by Netherlands-based Mobilisation in the
country's highest court, the Council of State, it was reported by Netherlands'
newspaper Financieele Dagblad January 14.

The environmental group claims the Netherlands government could be in breach
of the European Integrated Pollution Prevention and Control regulation by
granting licenses for the coal plants, because of the CO2 emissions they would
generate.

Five European utilities - E.On, Electrabel, Essent, Nuon and RWE - are each
aiming to build one coal plant in the Netherlands within the next five years.
Mobilisation is unable to sue the utility companies because they are allowed
to emit CO2 under the European Emissions Trading Scheme.

E.On is planning a 1,100-MW increased efficiency coal plant to replace its
existing Maasvlake plant at a cost of Eur1.2 billion; Electrabel wants to
build an 800-MW coal/biomassfired plant also at Maasvlake near Rotterdam.
Essent is advancing plans for an 800-1,100-MW hybrid coal plant capable of
co-firing more than 40% biomass.

"Later this year we expect to take the final investment decision," said Essent
spokesman Jeroen Brouwers January 14. Nuon's project Magnum is for a 1,200-MW
power plant capable of burning coal and gas at the port of Eemshaven in
northern Holland.