EDP accelerates delivery of its coal free commitment with conversion of Aboño plant and request to close remaining Spanish coal assets

Friday 27, October 2023

The conversion of the Aboño II coal plant to gas fired is a significant step in EDP’s consistent journey towards full decarbonization of its portfolio. Next steps also include a partnership with Corporación Masaveu through the sale of a 50% stake in Aboño and the request to the Spanish authorities to close Aboño I, Soto 3 and Los Barrios coal plants.

EDP is accelerating the delivery of its coal free commitment by 2025 with reinforced plans for the group’s remaining coal plants in Spain. These decisions represent yet another relevant step in the company’s journey towards full decarbonization of its generation portfolio, following the disposal of the Pecém coal power plant in Brazil and the shutting down of Sines plant, in Portugal.

The decisions taken regarding the Spanish coal assets include:

  • Conversion of the Aboño II thermal plant in Spain, from coal into gas fired, expected to occur by middle of 2025 ;
  • Establishment of a new partnership with the Asturian based industrial Group Corporación Masaveu, through the sale of a 50% stake in Aboño, for an Enterprise Value of c.€350 million and an Equity Value of €60 million for 100% of the asset;
  • Authorization requested from the electricity system operator (Red Eléctrica) to close Aboño I coal plant, as well as EDP’s last remaining coal plants in Spain (Soto 3 and Los Barrios).

Aboño consists of two coal groups (Aboño I and II) with a combined capacity of 904 MW, near Gijón and the port of Musel, which play a key role in supporting the security of electricity supply to the Asturias region.

The new EDP/Corporación Masaveu industrial partnership, consolidated by EDP through equity method, foresees joint control in the management of Aboño and transfer of liabilities related to the power plant. It reinforces the commitment to Asturias together with an industrial partner with a strong regional presence, maintaining the conditions of all the people working at the facility.

EDP will retain full ownership and development of the Just Transition projects in Aboño, such as hydrogen and renewables projects. The Asturian green hydrogen valley, in Aboño, is one of the most important projects in Europe in this field and has obtained IPCEI accreditation from the European Union. It is also the only project in Spain included in the four support channels that the European Union has for projects related to green hydrogen: Innovation Fund, IPCEI, H2 pioneers call from the Spanish recovery plan and H2 value chain call from the Spanish recovery plan.

EDP has committed to being coal free by 2025, 100% renewable by 2030 and net zero by 2040, leading the energy transition to create superior value and ensure a more sustainable future for all.