Through its AOT energy business, acquires a cogeneration power plant in Arad, Romania, and 15-year LNG to gas capacity via FSRU at Alexandropoulis, Greece
- Gas-fired cogeneration power plant in Romania comprises an established production platform, with a 240 MVA capacity. Plans to deploy over EUR 120 million to both create a hybrid natural gas/hydrogen power platform, and to construct a 110MW solar plant on the site and adjacent land. The entire project will be integrated into ArrowResources’ existing energy portfolio.
- 15-year access to the Alexandroupolis FSRU secures long-term gas capability in the Balkans, with a total nominal regasification and send-out capacity of 15mcm/day. The FSRU will be online from January 2024, with gas marketed downstream by AOT Energy across the entire region.
London, UK and Steinhausen, Switzerland, 7 November 2023: AOT Energy (“AOT”), the energy division of ArrowResources AG, an integrated global commodities group headquartered in Switzerland, announces that it has acquired the Cogeneration Power Plant in Arad, Romania, and has also secured 15-year LNG to gas Floating Storage and Regassification Unit capacity in Alexandroupolis, Greece.
The Arad power plant is on a 55-hectare platform with a 240 MVA capacity and its own 110 kV substation, with an interconnection to the national power grid. It is also connected to the national gas transport grid with 26,000 cubic meters of natural gas delivery hourly capacity. Currently it operates as a gas-powered cogen installation, producing both power and heat to the local community with a 100 MW heat delivery interconnection with the district heating network.
The acquisition is combined with plans to also purchase land adjacent to the gas plant to construct a 110 MW solar plant. This forms part of AOT’s wider programme to invest heavily in the full modernisation of the plant, creating a hybrid power plant with next-generation hydrogen-ready power production capacities. The intention is for the modernised plant to be operational by H1 2025, subject to obtaining all regulatory approvals, which will deliver an improved environmental footprint and bring the power plant at Arad up to its full capacity of 240 MVA. AOT’s modernisation plans will secure long-term employment opportunities in the local community, alongside significant investment in the region.
The access to the Alexandroupolis FSRU secures a 15-year LNG to gas capability, with a total nominal regasification and send-out capacity of 15mcm/day. The FSRU will be online from Q1 2024, with gas transport capacity booked up to Bulgaria, and marketed downstream across the entire region including Bulgaria, Romania, Serbia, and North Macedonia.
Andreas Daskalakis, ArrowResources’ Chief Executive Officer, commented:
“With AOT’s expertise and investment, the Arad power plant has a very bright future. We are committed to upgrade and modernise the existing asset by deploying the necessary capital and knowhow to achieve its full potential – which contributes to Europe’s decarbonisation targets and supports Romania’s energy security, ensuring long-term sustainability for all the stakeholders in the region.
The Alexandroupolis FSRU capacity supports the region’s LNG to gas market and is demonstrative of our strategy of investing across the region to both increase energy supply and security, as well as pushing the wider energy transition.
ArrowResources operates across the full commodities value-chain. These announcements are part of our rapid growth trajectory and will allow us to create added synergies throughout our group with vertical integration – from raw materials through to energy production – and the delivery of minerals vital to the net zero transition.”
The financial terms of the transactions were not disclosed.