EPH subsidiary plans to build four gas-fired power plants in Germany

German coal miner and power producer LEAG wants to build four gas-fired power plants in Germany, with a combined capacity of at least three gigawatts (GW). The plan is part of the German government’s current energy strategy, the company’s CEO told Reuters in an interview. LEAG is a subsidiary of the Czech businessman Daniel Křetínský’s Energetický a průmyslový holding (EPH).

„We will certainly take part,“ company chief Thorsten Kramer said, referring to Berlin’s plans to hold an auction for capacity under a system that has yet to be specified.

Planning for sites with a combined capacity of at least three gigawatts has been under way for several years, he added.

Earlier this month, the German government approved a strategy that includes subsidies worth the equivalent of 17 billion dollars (398 billion Kč). They are intended for operators of gas-fired power plants that can switch to hydrogen. Berlin sees hydrogen as a key future energy source in the transition away from polluting fossil fuels.

LEAG is Germany’s second-largest electricity producer. Kramer hopes the company will receive approval by Easter for compensation worth 1.75 billion euros (44 billion Kč), which Berlin plans to pay it for shutting down its lignite-fired power plants by 2038.

Brussels will still have to approve the aid for LEAG. Last year, the company’s larger competitor RWE received government support.

EPH is currently in talks with Thyssenkrupp about a possible takeover of half of the German company’s steel unit. The deal depends on LEAG’s transition to renewable energy sources.

Under its current transformation plan, LEAG aims to build seven gigawatts of renewable energy capacity by 2030. Its current capacity is less than 100 megawatts.