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Home › Dodgy Deals ›
Dodgy Deal
Plomin C coal power plantCroatia

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

climate@banktrack.org

Last update: 2015-11-01 15:22:37
Photo: -

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

climate@banktrack.org

Last update: 2015-11-01 15:22:37
Why this profile?

What must happen

Financial institutions should steer clear of financing this project.

About
Sectors Coal Electric Power Generation
Location
Status
Planning
Cancelled
Agreement
Construction
Operation
Closure
Decommission
Website http://www.hep.hr/hep/en/group/Development/Plomin.aspx

The Croatian electricity company HEP announced on September 2, 2014 that a preferred bidder consortium, consisting of the French energy company Alstom and the Japanese Marubeni Corporation, had been chosen to construct a 500 megawatt third unit at the Plomin coal power plant on the Croatian coast in Istria County. The plant would run on coal, transported by sea to the plant. The project, known as Plomin C, is being presented as a reconstruction of the Plomin 1 unit, even though it is nothing of the kind, having more than four times greater capacity than Plomin 1's 120 megawatt. The investment is estimated at EUR800 million.

June 2016: The Croatian Minister for Economy, Tomislav Panenić, has confirmed that the 500 megawatt Plomin C coal plant project has been stopped. The news was welcomed by environmental campaigners who have led a five-year campaign against the project due to its expected climate and health impacts, as well as its high cost.

Impacts

Social and human rights impacts

People living in the area of Labin are concerned about the pollution from the Plomin 1 and 2 plants. Although the closure of Plomin 1 will have to take place before the opening of the Plomin C plant, Plomin C's operation would ensure that the pollution continues. In April 2013 Greenpeace Croatia launched a study that showed that the Plomin C plant would be likely to cause around 680 premature deaths over its lifetime.

The economics of the Plomin C plant are highly uncertain, according to a calculation by Enco Tireli, who was the Construction Manager for the Plomin 2 plant. However his comments have not been publicly addressed by Plomin C's proponents. Any shortfalls in income will presumably be covered by the strategic investor charging higher electricity prices, which would have to be covered by the general public. However no official information about these aspects has been released as yet.

The project, apart from infringing the rights to a clean environment of local people in the Plomin and Labin area, is also likely to be associated with human rights issues connected with the mining of the coal. The coal will be bought on the spot market, and is likely to originate from countries like Indonesia, Colombia and South Africa, where human rights abuses are widespread in the mining sector. According to a presentation by electricity company HEP, around 25 percent of the coal used at Plomin comes from Colombia, making it one of the largest sources of coal for the plant.


Environmental and climate impacts

As Croatia is a small country, constructing Plomin C would effectively prevent it from meeting EU long-term climate goals. This one coal power plant alone wouldalso swallow up a significant portion, if not most, of the country's carbon budget by 2050. According to EU targets, Croatia's entire emissions will be limited between 1.566 and 6.264 million tonnes of CO2 annually. Plomin C by itself would emit 2.644 million tonnes of CO2. This leaves hardly any room for other sectors like transport and industry to emit CO2, even though they are deemed to be much more difficult to decarbonise than the energy sector.


Other impacts

HEP and Croatia's Minister of Economy argue that the plant will decrease dependence on imported electricity. In 2010 Croatia imported 575,000 tonnes of oil equivalent of electricity, but instead it will just increase Croatia's dependence on imported coal, as the country has exhausted its own coal resources.

The Plomin C plant is also in contradiction with the Istria County spatial plan which stipulates that the total capacity at the site with a third block may total only 335 megawatt and that any third block must run on gas. The Ministry of Spatial Planning and Construction's decision to issue a location permit for the plant in contravention of the County spatial plan is currently the subject of a court challenge by the Istria County authorities.

Financiers
Institution type
Finance type
Year

Crédit Agricole was the financial adviser of the Plomin C project.

In September 2015, Crédit Agricole adopted an updated coal power policy excluding the possible financing of the Plomin C project.

Companies

Alstom

France
Website
Preferred bidder

Daewoo International Corporation

South Korea
Website
Bidder

Edison

Italy
Website
Bidder

Hrvatska Elektroprivreda (HEP)

Croatia
Website
Project initiator

KOSEP

South Korea
Website
Bidder. Withdrew in October 2013

Marubeni

Japan
Profile
Website
Preferred bidder

POL-MOT

Poland
Website
Bidder. Withdrew in the spring of 2013
No companies
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Croatia backs away from plan for new coal-fired power plant

2016-02-06 | Reuters
Blog
BankTrack news BankTrack blog Partner news Partner blog

Major blow for Croatian coal plant as Crédit Agricole announces new coal power policy

2015-09-30 | Paris, France | Les Amis de la Terre, BankTrack, CEE Bankwatch Network, Zelena akcija
Blog
BankTrack news BankTrack blog Partner news Partner blog

Crédit Agricole violating own coal policies with new Croatian power plant support – new report

2015-09-10 | Les Amis de la Terre, BankTrack, CEE Bankwatch, Zelena-akcija
BankTrack news BankTrack blog Partner news Partner blog

Slovenians, in Their Rebuke of a Misbegotten Power Plant, Put U.S. Elected Officials to Shame

2015-09-09 | IEEFA
BankTrack news BankTrack blog Partner news Partner blog

After Slovenia’s Sostanj coal power plant debacle, is any bank going to finance Croatia’s Plomin C?

2015-06-17 | Bankwatch & BankTrack
BankTrack news BankTrack blog Partner news Partner blog

92 percent of public consultation respondents against Plomin C coal power plant

2015-03-24 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Parliament to Investigate "Monument to Slovenian Corruption", Thermo Plant TEŠ 6

2014-12-09 | The Slovenia Times
BankTrack news BankTrack blog Partner news Partner blog

Marubeni and Alstom's corruption records cast new doubts on Croatian coal project, warns new analysis

2014-10-02 | CEE Bankwatch Network
BankTrack news BankTrack blog Partner news Partner blog

HEP selects Marubeni as Preferred Bidder for Plomin C coal-fired power plant

2014-09-17 | IPP Journal
BankTrack news BankTrack blog Partner news Partner blog

Marubeni wins Plomin C IPP

2014-09-10 | PFI
BankTrack news BankTrack blog Partner news Partner blog

GOVERNMENT: Approves Plomin C Power Plant as Strategic State Project

2014-05-19 | Legislative & Policy Journal
BankTrack news BankTrack blog Partner news Partner blog

Planned contract for Plomin C coal plant most likely illegal state aid, says legal analysis

2014-05-05 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Another company withdraws from controversial Plomin C coal plant in Croatia

2013-10-07 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Croatian islanders fight for low-carbon future

2013-07-12 | DW
BankTrack news BankTrack blog Partner news Partner blog

Plomin project promoter not able to justify health risks of coal

2013-06-21 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Croatian coal power plant predicted to be a killer - new study

2013-05-10 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

Public action: Croatian coal power plant besieged by 680 bodies

2013-05-10 | CEE Bankwatch
BankTrack news BankTrack blog Partner news Partner blog

680 preuranjenih smrtnih slučajeva – da li je to cijena ugljena u „Plominu C“?

2013-05-09 | Zelena Akcija
BankTrack news BankTrack blog Partner news Partner blog

Croatia’s Plomin C power plant a health risk, green groups allege

2013-05-03 | Green Horizon
BankTrack news BankTrack blog Partner news Partner blog

Greenpeace ship in action against the thermopower plant "Plomin C"

2013-04-16 | Zelena Akcija
BankTrack news BankTrack blog Partner news Partner blog

Croatia's bold energy plans face uncertain future

2012-11-23 | Business New Europe
BankTrack news BankTrack blog Partner news Partner blog

Croatian green groups mount legal challenge on "Plomin C" coal power plant

2012-10-29 | Friends of the Earth Croatia website
BankTrack news BankTrack blog Partner news Partner blog

Croatian coal power plans advancing despite legal violations and economic unfeasibility

2012-10-08 | CEE Bankwatch website
BankTrack news BankTrack blog Partner news Partner blog

RWE is interested to support Plomin III as owner´s engineer of HEP

2012-09-14 | RWE
BankTrack news BankTrack blog Partner news Partner blog

Hunton & Williams Advises on €800m Power Plant in Croatia

2012-08-17 | Hunto & Williams
BankTrack news BankTrack blog Partner news Partner blog

Environmental study for illegal coal plant gets thumbs up in Croatia

2012-06-21 | CEE Bankwatch website
Resources
Documents
Images
Links
2015-09-10 00:00:00

The Plomin C Coal Plant: Analysis of compatibility with Crédit Agricole energy policies

NGO document
2015-09-10 00:00:00 | By Pippa Gallop (CEE Bankwatch) and Lucie Pinson (Les Amis de la Terre)
2015-05-19 00:00:00

Société Générale Coal Bank Briefing 2015

English version
BankTrack publication
2015-05-19 00:00:00 | BankTrack, Les Amis de la Terre
2015-05-19 00:00:00

Société Générale Coal Bank Briefing 2015

French version
BankTrack publication
2015-05-19 00:00:00 | BankTrack, Les Amis de la Terre
2014-04-22 00:00:00

Legal Opinion on the possible financing scheme of the Plomin C Coal-fired Power Plant (Croatia) and its compatibility with the state aid and public procurement rules of the European Union

NGO document
2014-04-22 00:00:00 | Environmental Management and Law Association
2013-04-01 00:00:00

Greenpeace health study: The hidden costs of Plomin C

NGO document
2013-04-01 00:00:00 | Greenpeace
2012-12-28 00:00:00

Climate change a spects within EIA proceedings

Croatia: Establishment of a new block in the Plomin Power Plant
NGO document
2012-12-28 00:00:00 | Justice and Environment
2012-10-30 00:00:00

Eexperience and lessons learnt from the retrofitting exercise of the Plomin TPP

NGO document
2012-10-30 00:00:00 | Institute for Energy Research and Environmental Protection
2011-05-01 00:00:00

Environmental Impact Assessment and IPPC study

Company document
2011-05-01 00:00:00 | Ekonerg

Plomin C coal power plant

2013-02-07

Source Watch on Plomin C

Plomin Power Station

Action on Crédit Agricole in Zagreb on September 10, 2015

Page on the action in front of the French embassy targeting Crédit Agricole involvement in Plomin C on September 10, 2015.

Press release on Crédit Agricole involvement in Plomin C

Press release by FoE France on Crédit Agricole involvement in Plomin C on September 10, 2015.

CEE Bankwatch on Plomin C

Friends of the Earth Croatia on Plomin C

Croatia, Italy and Colombia linked by harm from coal industry

Bankwatch

NGOs demand transparency in negotiations over Plomin C coal project in Croatia

Bankwatch

Blog by BankTrack

Peak pollution Eight months of independent monitoring of air quality in the Balkans

Report by Bankwatch

Updates

2016

2016-06-14 00:00:00 | Croatia to drop controversial coal plant project, Plomin C, confirms minister

The Croatian Minister for Economy, Tomislav Panenić, has confirmed that the 500 megawatt Plomin C coal plant project has been stopped. The news was welcomed by environmental campaigners who have led a five-year campaign against the project due to its expected climate and health impacts, as well as its high cost. "This project has proven to be a major distraction for HEP and the Croatian government and has diverted them away from developing a cost-effective and sustainable energy strategy", said Bernard Ivčić from Zelena akcija/Friends of the Earth Croatia.

2016-03-03 00:00:00 | Expert analysis confirms: Plomin C coal plant is economically unfeasible

The Plomin C coal power plant would bring higher social costs than benefits and is highly sensitive to changes in operational costs, so it is not recommended to continue with the project, according to a new economic analysis commissioned by Zelena akcija (Friends of the Earth Croatia) and carried out by the Society for Sustainable Development Design (DOOR) using European Commission methodology.

2016-02-06 00:00:00 | Croatia backs away from plan for new coal-fired power plant

According to Reuters: Croatia is unlikely to go ahead with plans to build a new coal-fired thermal plant in the northern Adriatic for which it entered partnership talks with Japan's Marubeni Corp, the environment minister said.

2015

2015-09-30 00:00:00 | Major blow for Croatian coal plant as Crédit Agricole announces new coal power policy

The  publication of new criteria for coal-fired power plant financing by French bank Crédit Agricole suggests that the bank will not be able to finance the controversial EUR800 million Plomin C coal power plant in Croatia, believe campaign groups. The policy now rules out finance for coal power plants in high-income countries, which includes Croatia.

2015-03-24 00:00:00 | 92% of public consultation respondents against Plomin C coal power plant

The Istria County authorities held a public consultation from 16 February - 15 March with the question: Are you for or against the Plomin C power plant using coal as a fuel? The results of the consultation, in which 9085 members of the public and 183 clubs and associations participated, is that 92 percent of respondents stated that they are against a new power plant using coal at Plomin.

2014

2014-10-02 00:00:00 | Marubeni and Alstom's corruption records cast new doubts on Plomin C coal power project, warns new analysis

A new briefing paper from CEE Bankwatch Network presents warnings about the suitability of two major international companies now in poll position to develop the controverisal 500 megawatt Plomin C coal-fired power plant in Croatia. Japan's Marubeni Corporation and France's Alstom, who have together been chosen as the preferred bidding consortium for the Plomin C coal power project, have a poor integrity record including several convictions for corruption offences which should raise alarm bells and increase vigilance among the Croatian public and potential financiers of the project.

2014-05-05 00:00:00 | Planned contract for Plomin C most likely illegal state aid, says legal analysis

A planned long-term power purchase agreement in which Croatian electricity company HEP will commit to buying at least 50% of electricity from the planned Plomin C power plant for 20-30 years will most likely be illegal under EU state aid rules, according to a new legal analysis by Hungary's Environmental Management and Law Association (EMLA).

EMLA's analysis finds that since HEP is state-owned, a long-term power purchase agreement would be considered state aid. State aid, provided to economic actors, is generally illegal in the EU However particular aid can still be allowed in certain circumstances. In the case of Plomin C, EMLA considers it virtually impossible that HEP could fulfil the necessary criteria for the agreement to be considered legal. This could present a serious obstacle to the project's implementation.

2014-01-20 00:00:00 | New legal complaint on Plomin C

Zelena akcija (Friends of the Earth Croatia) has submitted a complaint to the Croatian Constitutional Court as part of its ongoing campaign to prevent the construction of the Plomin C power plant, which would be run on imported coal.

The complaint challenges the verdict of the Administrative Court in Rijeka. In October this court rejected Zelena akcija's previous complaint, that sought to overturn the project's environmental permit. In the new complaint, Zelena akcija argues that the Administrative Court should not have ignored the fact that the project is in contradiction with the Istria County Spatial Plan.

More specifically, it is legally defined that the Environmental Impact Assessment process should be carried out for projects that are in line with spatial plans. Therefore, Zelena akcija argues that the court ought to have examined the issue of Plomin C's incompliance with this document. In addition, Zelena akcija argues that the court, de facto, curtailed its right to appeal against the issuing of the permit by failing to systematically consider its arguments.

2013

2013-12-28 00:00:00 | Location permit challenged in court

The decision to issue a location permit for the Plomin C plant in contravention of the spatial plan is currently being challenged in court by the Istria county authorities, as of December 2013. An earlier attempt to overturn the environmental permit by environmental groups Zelena akcija, Zelena Istria and local inhabitants resulted in the magistrate declining to make a ruling on the spatial plan issue due to the other ongoing court case on the same issue.

2013-10-11 00:00:00 | Another company withdraws from controversial Plomin C coal plant in Croatia

Korean company KOSEP has confirmed that it no longer intends to participate in bidding for the controversial 500 megawatt Plomin C coal power plant in Croatia. KOSEP is the second of the four strategic bidders shortlisted in September 2012 to pull out of the project, after Polish company POL-MOT withdrew in the spring of this year.

2013-06-19 00:00:00 | First hearing in legal case against the environmental permit

On 19 June 2013 the Administrative Court in Rijeka, Croatia, held the first hearing in the case against the Croatian Ministry for the Protection of the Environment and Nature on the issuing of the environmental permit for the construction of the Plomin 'C' power plant. The appeal was launched by the NGOs Zelena akcija/Friends of the Earth Croatia and Green Istria, along with several local residents of the Labin area. Istria County has also submitted a complaint against the Ministry. The court accepted the request by the NGOs and residents to invite dr. sc. Davor Skrlec as a witness for the next hearing. Dr Skrlec served as the chair of the commission for the evaluation of the Environmental Impact Assessment for Plomin C. The court also refused a request by the Ministry to exclude a Greenpeace study on the health impacts of the plant as evidence in the case. The next hearing in the process will be held on 11th October 2013.

2013-02-07 00:00:00 | Environmental Impact assessment

In 2011 an environmental impact assessment was opened for public comments for a 500 megawatt unit running on coal. In September 2012 an environmental permit for the plant was issued. This is being challenged by Zelena akcija (Friends of the Earth Croatia) and Zelena Istria (Green Istria) in court. On October 29, 2012 the Istria County Assembly called for a local referendum on the plant's construction. The County Prefect also submitted a court appeal on the environmental permit.

 

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