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Sev.en Energy deepens its cooperation with China Huaneng Group and explores project financing with major Chinese banks

30 April 2019

Prague, 30 April 2019 -- Representatives of Sev.en Energy Group have visited the People’s Republic of China. In Beijing, they signed bilateral memorandum of understanding with Bank of China and an agreement with China Huaneng Group (CHG) on cooperation within their shared InterGen platform and on a joint effort in deploying the latest energy technologies in Europe.

Sev.en Energy’s top executives came to Beijing with the delegation of the president of the Czech Republic on invitation by the Chinese president. Sev.en Energy is deepening its relationships in China following the recent acquisition of 50% of InterGen, an international power producer with generation assets in the UK and Australia, where CHG owns the other 50%.

“The acquisition of InterGen and cooperation with our Chinese partners is Sev.en Energy’s major step on its path to international expansion. Jointly we will make InterGen a successful growth platform. We are also excited about the possibilities to introduce in Europe the latest energy technologies and solutions developed in China,” Luboš Pavlas, Sev.en Energy’s CEO, comments on the meetings.

Sev.en Energy is focusing on a strategic transition between conventional power generation and advanced energy generation and storage technologies. China is currently one of the world’s largest investors in R&D in this area. The partnership between Sev.en Energy and CHG opens up opportunities for applying the latest energy solutions from their R&D Institutes and direct deployment experience in their vast generation fleet.

Chinese banks are interested to support strategic and infrastructure projects along the Belt and Road. Sev.en Energy entered in dialogue with Bank of China on financing of several investment projects aiming at the transformation of the energy sector.

“One of the major projects on which we are working now with the management of InterGen is the opportunity to build large-scale battery storage parks in the UK. We could become the European leader in this cutting-edge technology. A similar project is also being considered for the Czech Republic,” Alan Svoboda, Executive Director responsible for international expansion, adds.

Sev.en Energy also recently sent a team of engineering experts to China. They visited several power-plant sites and technology centres and explored the opportunities for using Chinese technologies in the Czech Republic. Among others, they were impressed by the GreenGen IGCC power station in Tianjin near Beijing. The gasification of coal prior to power generation enables capture of CO2 and lowering of the overall emissions to minimum levels.

The signing of the cooperation agreement between Sev.en Energy and CHG was among the highlights of the economic events of the Czech Chamber of Commerce latest mission to Beijing and the official visit of the Czech President.

Context:

InterGen is a leading independent power producer with assets in the UK and Australia. The company owns and operates three combined cycle natural gas-fired plants in the UK and holds stakes in two modern coal-fired power stations in Australia. The installed capacity totals over 4,000 MW. In addition, the company will complete a 300 MW OCGT (open cycle gas turbine) project this year and has additional energy projects in the pipeline.

China Huaneng Group is China’s second largest energy company with installed capacity of 177 GW. Its portfolio includes modern coal- and gas-fired power stations and a growing fleet of renewable plants.

Last year, Sev.en Energy announced an ambitious international expansion program. In January it signed acquisition of 50% in InterGen. In the Czech Republic, the Group operates two lignite surface mines and four coal-fired power station units that are currently undergoing a major overhaul for CZK 7 billion. The group employs in the Czech Republic more than 3,200 people. Consolidated assets (before the acquisition) are valued over EUR 850 million and 2018 EBITDA was EUR 184 millon.

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