19 September 2007 – E.ON and Turcas, one of the leading energy companies in Turkey, have decided to jointly develop, construct and operate two 800 MW power plants in Turkey.
The companies today signed a Shareholders Agreement. According to this the partners will found two joint venture companies to execute these projects. 70 per cent of each of these purpose companies shall be owned by E.ON’s Turkish subsidiary E.ON Elektrik Üretim Ltd. Sti., 30 per cent will be held by Turcas Elektrik Üretim A.S.
One of the power plants will be hard coal fired, the other one will use natural gas.
Lutz Feldmann, Member of the E.ON Board and responsible for new Markets: “For E.ON these projects will be a major step into the Turkish energy market. With its strong growth rates and its urgent demand for additional generation capacity Turkey is one of the most attractive energy markets and offers good opportunities for experienced players like E.ON. Turcas is a strong partner.
“The Shareholders Agreement is an important step towards a fruitful cooperation and demonstrates the seriousness to realize the intended power plant projects.”
Entering the Turkish market is the next successful project from E.ON’s recent strategic plans communicated in May this year. Since the E.ON succeeded in the Acquisition of the gas field Skarv Idun, the renewables company Energie E-2 and made the first step towards entering the Russian power market with OGK-4.
The agreement with Turcas is thus another fast deliverable from this €60bn ($83.9bn) investment offensive. E.ON’s Partner Turcas Elektrik Üretim A.S. is a wholly owned subsidiary of Turcas Petrol A.S. with its registered office in Istanbul, Turkey.
Founded in 1936, Turcas is one of the leading energy companies in Turkey with a number of subsidiaries in the oil, gas and power sectors. It owns 30 per cent of Shell & Turcas Petrol A.S. with a downstream network over 1300 gas stations throughout Turkey.
Turcas successfully partners through joint ventures with various international energy companies, and intends to establish in the Turkish electricity market a significant market position covering the generation, trading and distribution business.