August 30, 2022
August 30, 2022
Romania’s insolvent Complexul Energetic Hunedoara (CEH) has sold its Mintia coal-fired power plant to Mass Group Holding, an Iraqi company with headquarters in Jordan, for EUR 91.2 million. The buyer is required to invest in a new power generation unit that will mainly use natural gas and renewables.
The Mintia thermal power plant, with five coal-fired units totaling 1,285 MW, was shut down in July 2021, having failed to meet EU environmental standards, according to Romanian media. The plant is located near the city of Deva on the bank of the Mureş river.
The 1,285 MW Mintia power plant was shut down in July 2021
The Romanian government has recently decided to push back its coal phaseout deadline from 2030 to 2032 due to the ongoing energy crisis. The cabinet also decided not to dismantle some of the thermal power plants it closes, opting instead to keep them in reserve.
Romania has pushed back its coal phaseout deadline from to 2032 amid the energy crisis
The Mintia transaction comes with strings attached, imposed by the Romania’s energy ministry, as a shareholder. These include the obligation for the buyer to complete a new 1,290 MW power unit, of which 800 MW is to be based on natural gas and renewable sources, by the end of 2026.
The buyer plans to invest over EUR 1 billion in Mintia in the coming years
“The investments in the modernization and development of the Mintia power plant in the coming years will amount to more than EUR 1 billion,” said Ahmad Ismail Saleh, chairman of Mass Group Holding, adding that this will include building new production capacities and bringing the plant into line with European standards for electricity generation from renewable sources.
The transaction was carried out through Mass Global Energy Rom, a firm set up for the purpose of the Mintia acquisition. Mass Group Holding’s head office is located in Amman, Jordan, but its power generation capacities, totaling 8.5 GW, are located mainly in Iraq. The group also produces cement, iron, and steel.
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