E.On To Invest $33.5 Billion Through 2009

Company will modernize and expand power plants, power networks and natural gas supply infrastructure.

German utility company E.On said Thursday that it plans to invest $33.5 billion through 2009, of which about $15 billion will be investments in fixed assets to modernize existing plants and construct new power plants.

E.On is currently in construction on several plants, including an 800MW combined-cycle gas turbine in Italy, a 1,100MW coal-fired power plant in the Netherlands, and is planning a 1,000MW coal-fired generating unit in Germany.

Approximately $7.6 billion of its $33.5 billion investment will be used to modernize and expand its power networks. The focus will be in Germany, as more wind power facilities will be connected.

About $5.3 billion will be spent on maintenance and expansion of its natural gas supply infrastructure and $3.8 billion will be spent to acquire shareholdings, most of which are for the Yushno Russkoye gas field in western Siberia.

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