Daniel Křetínský: The Czech businessman profiting by frustrating the energy transition – with ING’s help
Nestled in northern Italy, beautifully situated in a bend of the River Po, lies the small town of Ostiglia. A quaint church, a medieval square, and a population of 7,000 define the town. But there’s also a gigantic gas-fired power plant. Nearly ten years ago, this power plant came into the hands of Czech oligarch Daniel Křetínský—with the support of ING. He now wants almost to double the capacity of the plant. This far exceeds the electricity needs of the local population. Residents oppose the expansion in every way possible, as the region does not need such an ample supply of electricity. Moreover, expanding gas-powered plants is not aligned with Italy's climate goals.
Residents of Ostiglia oppose gas plant expansion
We spoke with Lorenzo Bassi, who lives near the gas plant and is part of Fridays for Future Mantova, a citizens' movement that has opposed the expansion since 2019 through demonstrations, informational events, and social media campaigns.
“The Ostiglia power plant runs on gas and supplies the Mantua region with electricity,” Lorenzo explains. “But the plant is far larger than we need, so much of this electricity is supplied to the wider area. That’s why it’s so strange they’re expanding it. More gas-powered electricity means more CO2 emissions when we should be reducing CO2 emissions. That’s why we’re fighting this expansion.”
Since the government announced and approved the expansion, residents formed the "Citizens for the Environment" committee, which unites over forty associations to stop the expansion. In March 2022, they took the new Czech owner to court. Unfortunately, in September, the court rejected their claims. The committee immediately appealed. The verdict is still pending.
What is ING’s role in the Ostiglia Power Plant?
While the court deliberates, Lorenzo and other climate activists are not standing still. They regularly take action, including campaigning against the banks financing this expansion.
ING is one of these banks. Since 2016, ING has provided €957 million in loans and bond underwriting to EPH and its subsidiaries. This money allows EPH to acquire old, polluting fossil fuel infrastructure, like the Ostiglia gas plant, keeping it operational for longer, or claiming compensation when governments mandate the closure of coal and gas plants.
Who is Daniel Křetínský?
Daniel Křetínský is a Czech businessman profiting from dirty energy. With his company, EPH, he frustrates the transition to renewable energy on a large scale. EPH is not just a Czech company; it is the investment vehicle of the billionaire oligarch. EPH hinders Europe’s energy transition by delaying coal phase-outs in various countries and building new gas infrastructure across the continent.
Křetínský is the type of "oligarch" primarily associated with Russia—a businessman who amassed wealth rapidly after the fall of communism in the Czech Republic. His first major success came during the privatisation of Czech state companies. Through a murky deal with the government, he gained control of gas pipelines that transported Russian gas to Europe. This provided a steady cash flow, which he used to invest in Europe’s energy sector.
He focused primarily on lignite mining in Germany and coal and gas plants in countries like England, Italy, France, and the Netherlands (see information block).
What is Daniel Křetínský and EPH’s business model?
Many European energy companies are transiting towards a more sustainable business model, often divesting their most polluting assets. People like Křetínský buy up these polluting assets. For example, in 2016, he bought all the coal mines and power plants in Eastern Germany from Swedish state-owned company Vattenfall at a bargain price. What followed was an aggressive expansion plan for this coal industry. The German government eventually blocked the plans, but had to pay a hefty price to do so: Křetínský received €1.75 billion in compensation. The European Commission has since launched an investigation to determine whether this compensation was justified under EU law.
A similar scenario occurred in 2019 in France: Křetínský purchased power plants from German energy company Uniper, which, like Vattenfall, decided to "put an end to coal." They could have shut down these polluting plants themselves, but instead, they sold them to Křetínský. Following Russia's invasion of Ukraine, both the French and German governments decided to keep some of these plants open longer.
Křetínský profits either way: either the plants remain operational for longer than planned, or they are shut down, and he collects government compensation. It’s a business model that obstructs the energy transition.
EPH: A highly polluting multinational
Křetínský’s company, EPH, is the largest company in the Czech Republic and one of Europe's three largest coal companies. Regarding the amount of CO2 emissions, EPH ranks third among European energy companies. Since EPH also operates in gas, it is Europe's eighth-largest fossil fuel energy supplier..
While many energy companies are moving away from fossil fuels, EPH has the largest development plans for fossil gas plants in Europe out of all the energy companies in Europe. EPH is trying to refurbish and convert the old Eggborough (UK) coal-power plant into a gas-fired power plant. There are similar plans for the Mehrum plant in Germany. New gas facilities will be built in Kilroot, Northern Ireland, and Tavazzano, Italy. And, of course, there are the expansion plans for Ostiglia.
EPH in the Netherlands
In the Netherlands, EPH owns and operates the Sloe (870 MW), Rijnmond (800 MW), and MaasStroom (426 MW) gas plants. It also holds a 50% stake in the Enecogen gas plant (910 MW). With a total capacity of 2.6 GW, EPNL is the third-largest operator of power plants in the Netherlands.
Křetínský buys influence through football clubs and media
Daniel Křetínský presents himself as a benevolent, liberal figure, especially in Western Europe. How? As is often the case, by acquiring stakes in football clubs—in his case, two. He is the chairman of Sparta Prague, the "Ajax of the Czech Republic," where he reportedly owns 40% of the shares. He also has a 27% stake in the English club West Ham United. These associations give him a friendly public image, making it easier for him to gain influence.
Křetínský also has significant stakes in the media. In the Czech Republic, two of his outlets, Reflex Weekly and Info.cz daily, are notorious for frequent attacks on European climate policy. Their editors even use social media, especially X, to verbally attack climate activists. In 2018, Křetínský also acquired a stake in Le Monde, France's largest newspaper, causing significant unrest within its editorial team. The concentration of media power in the hands of powerful oligarchs is a problem and poses a threat to press freedom.
What can we do about EPH, Daniel Křetínský, and ING’s financing?
Lorenzo from Italy offers a good example:
"Recently, we attended a cultural festival sponsored by two major Italian banks that do business with Křetínský. In front of the audience, we asked some uncomfortable questions. This way, everyone could hear and see what was happening. Through such actions, we hope to exert influence."
EPH has embedded itself in European society. The fight in Ostiglia against the power plant expansion is not isolated. We need to unite internationally to fight EPH effectively. In the Netherlands, we can contribute by pushing for an end toING’s relationship with EPH. This can be achieved by exposing the true nature of Daniel Křetínský and EPH’s climate-cynical business model.
How? Share this story on social media and tag ING in your post. Together, we can ensure ING no longer wants to be associated with EPH and Daniel Křetínský.
The story about EPH is not an isolated event. With our ING Fossil-Free Storytelling group, we are exploring the impact of ING's fossil billions. Read more here (in Dutch):
This blog was originally published in Dutch on Fossil Free Netherlands' website on November 4th.
