FRANKFURT, Germany (AP) - German utility E.On AG said Wednesday it will spend $359.8 million to build an environmentally sound combined-cycle gas turbine plant in the Hungarian city of Gonyu.
The plant is scheduled to become operational in 2010 with a capacity of 400 megawatts, E.On said in a statement.
E.On said Gonyu will be one of the world's most efficient power plants, and the company may double the capacity of the plant to 800 megawatts at later date.
The Gonyu power plant will help to consolidate E.On's market position in Central and Eastern Europe, the company said. E.On already holds a strong position in electricity sales, which it will now back up by building up its own generation capacity.
The gas required for generating electricity will be supplied by E.On Foldgaz Trading.