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GenerolSecretariatCOM(81)786 final
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FOROFFICIAL USEONLY
■COMMUNICATION _FROMTHE_COMMISSION _TOTHE_COUNCIL
RequestfoptheCouncil'sassent,underthesecondparagraph
ofArticle54oftheECSCTreaty,totheco-financing of
theextensionofanindustrial back-pressure powerplant
anditsconversion fromoil/gastofiringcoalfiring
atDeutscheSolvay-Werke GmbH,Solingen-Ohligs
C0M(81)786final

ForOfficiaiUseOnly
NotetotheCouncil
Subject:RequestfortheassentoftheCouncilunderArticle54,2ndparagraph,
oftheECSCTreaty,totheco-financing oftheextensionofan
industrialback-pressure powerplantanditsconversionfrom
oil/gasfiringtocoalfiringatDeutscheSolvay-Werke GmbH,
Solingen-Ohligs .
Amountoftheloan:DM40.0million(approximately 16.36millionECU)
Borrower:DeutscheSolvay-Werke GmbH,Solingen-Ohligs
Sinceitwasfoundedin1880asasodamanufacturing company,Deutsche
Solvay-Werke GmbHhasdevelopedintoachemicalconcernwithavaried
productionprogramme.Itsproductsfall-mainlyintothefollowing
categories :
-alkaliandchlorineproducts(e.g,soda,sodiumcarbonate,caustic
soda,calciumcarbonate,ferricchloride,chlorine,titaniumdioxide):
*-petrochemicals (e.g.PVC,Ixan,low-pressure polyethylene andpolypropylene):
-salt(e.g.de-icingsalt,industrial,commercialandkitchensalt).
.1
DeutscheSolvay-Werke GmbHistheleadingproducerofsodaonthe
Germanmarket.Withitsvarioussubsidiaries andaffiliatesithasa
turnoverofapproximately DM2900millionandisoneofthetenbiggest
chemicalgroupsinGermany.
98.8%ofthesharesofDeutscheSolvay-Werke GmbHareheldby
Solvay&Cie,S.A.,.Brussels,theholdingcotapanyofthegroup,whichis
activemainlyinEurope,butalsointheUSA,BrazilandAustralia.The
group'sturnoverin1980wasBfrs138500million,withaworkforceof
,49000in13countries :

-2-
22.6%
20.9%
10.1%
9.6%
9.1%
8.9%
7.1%
2.1%
2.1% ;.:
2.0%
0.8%
0.3%
. , ί» .'
Project description '~
Since most oftheproducts ofDeutsche Solvay-Werke GmbH areproduced
byenergy-intensive processes ,energy isadecisive cost factor .Inorder
tobecompetitive ,therefore ,thecompany must have areliable supply of
energy atreasonable cost .
Deutsche Solvay-Werke GmbH' therefore intends toextend itsback-pressure
power plant attheRheinberg Works ,atpresent fired byoilandgas ,
inorder toproduce live steam using coal .Only domestic coal istobe
used .Coal supplies areguaranteed bysupply contracts foranaverage
of7250operating hours peryear foraninitial period of10years from ,
theentry into service oftheplant .1
Forreasons ofsafety andplant availability ,theplanned extension
must notbecarried out asasingle unit ,because ashut-down would
suddenly cutoffapproximately 65%ofthesteam required andwould seriously
affect theproduction installations s-Itistherefore planned tohave
„oneunit with aboiler capacity of200 t/hlive steam (generating capacity
approx .28.8 MW)and a'second unit with aboiler capacity of100 t/hlive
steam (generating capacity approx .14MW).
::•".••• >
Inorder toalleviate thevery high specific construction costs of
small coal-fired power plants ,usable components ofexisting installations
are tobeused intheconstruction ofthe 100 t/hunit .Inthecase of
boiler No2(constructed in1961 )oil/gasfiring istobereplaced bya
newcoal firing installation with coal mills ,fuel feeding devices ,etc .
Installations are to'beconstructed /supplied byGerman firms .The
preliminary plans were drawn upincollaboration with Deutsche Babcock AG,
Siemens AGandSteag AG.
Time table
100 t/hboiler :Start ofconstruction -endofJune 1930
Construction period -July 1980 -August 1981
Assembly ofboiler -early November 1980-August 1981
Commissioning -September 1981
200 t/hboiler :Start ofconstruction -October 1981
Construction period -November 1981-July 1983
Assembly ofboiler -July 1982-July 1983 .
Commissioning -August /September 1983
4008 /81enGermany
France ■
Brazil
Belgium
Italy
Spain
Netherlands
USA
Portugal
Great Britain
Austria
Switzerland
Australia

-3-
Outlay
Thefollowing outlay will berequired fortheplanned extension ofthe
power plant :
Approx .DM9million forthenewcoal firing equipment forthe100 t/h
boiler
Approx .DM71million fortheconstruction ofanew200 t/hboiler
with turbine andallancillary equipment .
Assessment
TheMember States oftheEuropean Community have setthemselves the
objective ofreducing their dependence onoilimports .TheEuropean Council
of27and28April 1980 inLuxembourg andtheWestern Economic Summit of22
and 23June 1980 inVenice putoutvery precise statements onthis subject
andexpressly recommended areturn tocoal .
Inacommunication transmitted totheCouncil on11May 1981 the
Commission examined thescope forreplacing oilbycoal in"other industries "
(i.e.allbranches ofindustry except theenergy sector ,thesteel industry
andsmall businesses )andwent into theproblem involved .
The Commission considers that conversion tocoal in"other industries "
should beencouraged byadditional measures atboth national andCommunity
levels .
Theproject tobeco-financed isinline with thegeneral energy
policy objectives oftheCommunity .Atthesane time oneofitsprimary
direct results will betoprovide anadditional outlet forECSC coal .
Theproposed investment programme istherefore also inline with the
provisions ofArticle 54,2ndparagraph ,oftheECSC Treaty .
Onthebasis oftheforegoing considerations ,theCommission approves
this project inprinciple andintends toapprove theloan application it
has received .The Commission therefore seeks the assent oftheCouncil to
thegranting ofaloan ofDM40.0 million toDeutsche Solvay-Werke GmbH ,
Solingen-Ohligs .
4008 /81en