By OGJ editors
HOUSTON, June 4 -- Horizon Energy Development BV, a unit of National Fuel Gas Co., Buffalo, NY, has signed a joint development agreement with ACEA SPA, Rome's public electric utility, to build a 400 Mw combined-cycle, natural gas-fired electric power plant.
The plant is to be built in Montenero di Bisaccia, Italy. The partners will establish a project company in Italy, of which Horizon Energy and ACEA each will own 50%.
Horizon Energy and ACEA expect the project to reach financial close during 2003. Plant construction is slated for completion by June 2005, and the plant is expected to be in operation by September 2005.
"Italy recently issued a decree expediting the development of new electric generation plants," said Bruce Hale, Horizon Energy managing director, in noting project incentives.
Total project financing requirements are estimated at $180 million, Horizon Energy said. Through an associated agreement yet to be negotiated, ACEA plans to purchase the power plant's entire output for 15 years. ACEA will market the power.
