It s great to be here with you today, since it gives me a personal opportunity to demonstrate how important Wales and the UK is to RWE.

Transcription

1 Dr. Juergen Grossmann CEO of RWE AG Rhyl Flats, 2 December 2009 Check against delivery! Ladies, Gentlemen and special guests It s great to be here with you today, since it gives me a personal opportunity to demonstrate how important Wales and the UK is to RWE. In Wales, RWE is visible through our partnership with the Ospreys rugby team. Much as I may look like a rugby player myself, I have tried to stay away from a rugby pitch, keeping to the safe distance of the spectators box. I ve therefore been spared cauliflower ears at least I hope so! With my son, however, it s different. He used to play rugby at school. But most of us in Germany only play football. Sorry about that. Of course it depends on the results whether this is an advantage or not. In any case RWE is doing much more than rugby sponsoring across Wales, especially here in the North. Even though rugby s rules are destined to remain a mystery to some of us, at least it s clear that the sport is distinguished by its passion, endurance and speed. Those traits clearly characterise the people of Wales, and are the ones that have made it a leading centre of power production. This is above all true of wind power. 1

2 In front of you on the sea, we have a powerful example of this. Rhyl Flats, the new wind farm that we have the honour to inaugurate today. I would like to express my heartfelt thanks to the people of Wales, their political representatives and, above all, the team that constructed the facility here. They are the ones who have made today possible. I was told that Mor means the sea in Welsh. For our business this is a very significant meaning indeed. Because mor brings us more possibilities to deliver sustainable, renewable energy. We have already built North Hoyle, a 60 MW offshore wind farm. Only a few miles away from where we are now. And also our next major project, Gwynt-Y-Mor, is just around the corner. It will be our biggest offshore wind farm to date. Three top-class windfarms in close distance: This speaks for itself. RWE feels a strong connection to Wales. Today, I am proud to say that our company is the largest investor in Wales and one of the largest in the UK far beyond the energy industry. In the coming years, RWE is investing 3 billion in Wales, paving the way for economic growth. On top of that we ll have the projects of our nuclear joint venture with Eon with the Wylfa area in Wales being an important cornerstone. I will come onto that later. Investments of this size are vital especially in economically tough times such as these. Investment, however, is not enough. In a few days, political leaders from around the globe will be gathering in Copenhagen to discuss how we can slow climate change. For RWE climate protection is an essential topic. We are only investing into in the most modern forms of technology for 2

3 new plants - a key factor being the reduction of CO 2. Each investment must take this into account, but also security of supply. That s why we want to continue expanding renewables in the UK. As of today, we are generating some 420 megawatts from wind and hydro power here. That makes the UK our second most important market in this area, after Germany. We want to continue our growth in offshore windpower. In addition to North Hoyle, Rhyl Flats and Gwynt-y-mor we are eagerly awaiting the Crown Estate decision about Round 3. There, too, we have submitted applications to build further offshore facilities. That we are capable of doing so has been demonstrated at Rhyl Flats. We have the best employees. Their skills allow days like this to happen. Yet wind and hydro power are not the whole story. We have also highly efficient biomass power plant projects. For the Tullis Russel paper mill in Scotland we are building a new power plant with an installed capacity of 50 megawatts (MW). It will replace the existing coal-fired power plant, bringing CO2 output down by tons per year. Trying to use nothing but renewables to supply a developed economy would, unfortunately, not be possible for the foreseeable future. Despite enormous advances in terms of output, they are not yet up to the task. We therefore need a balanced mix of energy sources. An ideal partner for renewables is nuclear power. Nuclear plants can increase or decrease production quickly. They re flexible, which means they can compensate for the fluctuations that result from renewables. 3

4 Together with Eon we have founded Horizon Nuclear Power, a company to build new nuclear power plants in the UK. On each of the two sites this could lead to 800 permanent jobs with 5,000 jobs being secures during the construction phase. Investments of more than 15 billion pounds will amount to around 6,000 megawatts of installed capacity. Yet even nuclear power combined with renewables will not be enough to meet UK, continental or global energy needs. We need additional technologies that are efficient and complement each other. Highperformance gas-fired plants, for example, are a smart choice for the UK. RWE is currently building two CCGT power stations (combined cycle gas turbine) power station at Staythorpe and Pembroke in West Wales. During construction 4,000 jobs are secured. In total, both plants will have a capacity of up to 3,650 megawatts enough to power five million homes. The investment volume for the two sites amounts to 1,600 billion pounds. The plants will reduce average annual CO 2 emissions by up to 17.5 million tonnes compared to an existing coal-fired station. That brings us to coal. We will shortly submit a planning application for what will be the UK s largest Carbon Capture and Storage pilot project (CCS) connected to a working power station. Where? In Wales, of course. If approved, the plant will be constructed at the company s 1,500 megawatt coal-fired power plant at Aberthaw. It will be capable of testing the capture process on emissions coming directly from the power station. The pilot plant represents our next phase of CCS research and development in the UK and forms a key part of the RWE Group s international research and development strategy. 4

5 As you can see, Wales is on the leading edge when it comes to technological development within RWE, and not just in the area of renewable energy. Wales is a real power house. But it s not just about generation, it s also about caring for people. This is important to us. For example, in Wales: RWE npower has been working with local councils and Health Authorities, to help ensure people can afford to heat their homes adequately Via our Warm Wales initiative, we have invested 16 million since 2004 and helped insulate 85,000 homes. In doing so, we ve created 60 local jobs and reduced CO 2 emissions considerably RWE, Wales and the UK are a great team. This is a long-term partnership for the future. I m told that if I was to play rugby, I would play at number 8 a key position, driving the pack forward. This is, metaphorically speaking, precisely what I intend to do with RWE and our investment strategy. 5