Govt to approve lignite sale

Czech energy company EPH’s bid to acquire state-owned Vattenfall’s German lignite coal assets will mean a loss of at least SKr 22 billion for the Swedish utility company, and the risk of the government being labelled a deserter on climate change. Magnus Hall, chief executive of Vattenfall, is nevertheless optimistic that the government will approve the sale.

Enterprise Minister Mikael Damberg said the government was receiving help from external advisors, in what is a complex financial transaction, adding, “I am very anxious that this should not become some kind of Nuon process.”

According to Vattenfall’s own calculations, its carbon emissions should fall to a level of 23 million tons per year from the current level of 83.8 million per year as a result of the lignite sale.