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UPM to sell German hydro facilities to erdgas schwaben gmbh

UPM announced it has signed an agreement to sell its four hydro facilities in Schongau and Ettringen in Germany to erdgas schwaben gmbh.
UPM to sell German hydro facilities to erdgas schwaben gmbh

UPM announced it has signed an agreement to sell its four hydro facilities in Schongau and Ettringen in Germany to erdgas schwaben gmbh.

The parties have agreed to not disclose the purchase price, UPM says, and the sale and purchase agreement is still subject to third party approvals.

The names of the plants were not disclosed. Per UPM’s website, the company operates nine hydropower plants in Finland. These are: Aetsa (completed in 1920), 72-MW Harjavalta (1939), Kallioinen (1957), Kaltimo (1958), Katerma (1950), Keltti (1939), Kuusankoski (1946), Tyrvaa (1950), and Voikkaa (1962).

“Erdgas schwaben is a deep-rooted energy company in Bavarian Swabia as well as a pioneer in power generation from renewable energy sources,” says Rainer Haring, Director Energy, Western Europe, for UPM Paper ENA. “As an integral part of an energy company the hydro power facilities could be better developed and optimized.”

Erdgas schwaben is expanding its business in renewables, according to a press release. “I am very pleased that we have been given the opportunity to acquire the hydroelectric power stations, which fit into our strategy precisely because we assume responsibility for our home and future generations,” says Klaus-Peter Dietmayer, managing director of erdgas schwaben.

The four facilities are run-of-river and generate 65,000 MWH of electricity annually, erdgas schwaben says.

UPM consists of six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Paper ENA (Europe and North America) and UPM Plywood.

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