Horizon Energy Development B.V. (“Horizon”), a wholly owned subsidiary of National Fuel Gas Company and ACEA S.p.A., an Italian utility serving the city of Rome, today announced that they have signed a joint development agreement for the construction of a nominal 400-megawatt combined-cycle natural gas electric generating plant, to be built in the town of Montenero di Bisaccia, Italy in the region of Molise.
As part of the joint development agreement, the partner companies will establish a project company in Italy, of which Horizon and ACEA will each own 50 percent. It is estimated that total project financing requirements will be approximately US$180 million. Through an offtake arrangement, to be negotiated, ACEA will purchase the entire output of the power plant for 15 years. ACEA will market this power through its power trading company, which was formed to sell energy in Italy. Horizon and ACEA expect the project to reach financial close during 2003. Construction of the power plant is anticipated to be completed by June 2005 and the plant is expected to be in operation by September 2005.
