French government to support Křetínský’s power plant in southern France

The French government will support the operation of one biomass power plant owned by GazelEnergie, part of the business empire of Czech billionaire Daniel Křetínský. Deputy Energy Minister Olga Givernet announced the move today, according to media reports, during a visit to the plant in Gardanne in the south of France. The eight-year agreement, worth a total of 800 million euros (around 20 billion crowns), will allow the facility to resume operations and preserve local jobs.

The thermal power plant switched from coal to biomass several years ago. However, rising biomass prices led it to halt operations late last year.

The agreement announced today will allow the plant to resume operations from 1 January next year. The contract with the French state provides for the plant to operate for 4000 hours a year, or roughly half the year. Under the agreement, the French state will purchase electricity from the plant for eight years, at a cost of 800 million euros.

Givernet told the media today that the agreement is conditional, among other things, on preserving jobs. She said this meant 90 jobs at the plant itself and another 500 across the supply chain. She added that the plant’s emissions had been halved thanks to the switch from coal to biomass.

GazelEnergie is part of the Czech EPH group. According to information on its website, EPH has two thermal power plants in France. In addition to the 150 MW plant in Gardanne, it also owns a 600 MW coal-fired plant in Saint-Avold in the north of the country.