German E.ON to invest $5.78 bln in Swedish power

January 2, 2008

http://uk.reuters.com/article/oilRpt/idUKL024476820080102

STOCKHOLM, Jan 2 (Reuters) - German power company E.ON (EONG.DE: Quote, Profile, Research) will invest 37 billion crowns ($5.78 billion) to boost production in Sweden in the period to 2010, its Nordic chief said in a newspaper article on Wednesday.

Daily Dagens Industri quoted Hakan Buskhe saying about half the money would go towards new electricity production and the rest to modernising and extending the life of current facilities and investment in its transmission network.

"E.ON plans massive investments in order to grow further in both Sweden and the rest of the Nordic region," Buskhe said.

Much of the money will go towards boosting production at E.ON's nuclear facilities.

E.ON is part owner of the Ringhals, Forsmark and Oskkarshamn atomic power stations, which provide about 50 percent of Sweden's electricity.

Buskhe said E.ON hoped to build more nuclear plants with a strong possibility the firm would construct a new reactor in Finland.

Investments will also be made in biofuel plants, natural gas and wind power, giving 8.5 terawatt-hours of annual new production.

In October, E.ON agreed to swap assets worth 4.4 billion euros ($6.48 billion) with Norway's Statkraft, giving the German firm full control of its Swedish unit.

E.ON said at the end of 2006 it would invest around 25.1 billion crowns in Sweden between 2007 and 2010. (Reporting by Simon Johnson; editing by Sue Thomas)