Uniper sells mothballed Swedish power plant for reconstruction abroad

OSLO, Aug 19 (Reuters) - German utility Uniper said on Thursday it had sold its idle Oeresundsverket power plant in Malmoe, Sweden, to a Dutch company which will dismantle the facility and rebuild it outside Europe.

Uniper and the buyer, PACO Holding, did not divulge financial details of the deal.

PACO Holding will start negotiations for the re-sale of the 450-megawatt plant with potential buyers in Vietnam and Dubai, its Chief Executive Chris Verbakel told Reuters.

Built in the 1950s, Oeresundsverket was refurbished into a modern dual-fuel power plant in 2009, primarily running on gas but also capable of burning oil. It has been idle since 2016 after becoming uneconomical to run.

PACO Holding has hired a contractor and will soon start to plan the dismantling process, Uniper said in a statement.

The market for second-hand power plant equipment in Europe has picked up amid an overcapacity of fossil-fuel based units, he said.

Oeresundsverket’s dual-fuel technology was especially popular, Verbakel added.

While there was also a market for coal-fired plants, which many European countries are trying to phase out in a drive to reduce emissions, those located in Europe were generally too old and less attractive to buyers, he said.

Uniper said it will continue to operate two gas turbines at the Malmoe site with a capacity of 63 megawatts each to provide back-up power to help balance the Swedish power grid. (Reporting by Nora Buli; Editing by Jan Harvey)