Enel, through its subsidiary Enel Investment Holding, has acquired 80% of Marcinelle Energie, a special purpose company that is developing a 420 MW combined cycle gas turbine plant gas in the Wallonia region of Belgium, from Duferco, a steel group being a major electricity consumer in Belgium.

Enel Investment Holding has replaced Duferco Diversification, a subsidiary of the Duferco Group, as the controlling shareholder of Marcinelle Energie. Duferco Diversification remains a minority shareholder of Marcinelle Energie, with a stake of 20%. Enel will pay Duferco a total of 32 million euros for 80% of Marcinelle Energie, of which 19.2 million have already been paid, with the remaining 12.8 million to be settled in two instalments in 2009 and 2010.

Construction work, which will be performed by Enel Produzione S.p.A. under a turnkey contract, is scheduled to begin this July and will be completed at the start of 2011, with a total estimated investment of about 290 million euros. Under the agreement, Marcinelle Energie will finance the project by non-recourse project financing. Once fully operational, the plant, which has been designed using Ansaldo technology, will generate about 2.5 TWh of electricity a year on the most competitive terms while complying with stringent environmental standards. The power will serve the national Belgian market.

The operation is part of Enel’s international consolidation and growth strategy in all the regions where it is present. In particular, the Belgian market is highly attractive thanks to its geographical position, being located between the two top markets of Continental Europe (France and Germany) and its dynamism. The Marcinelle combined cycle project adds to Enel’s presence in France in the generation from nuclear sources, through its participation in the new generation Epr project, in the development of wind power with Enel Erelis and in electricity trading with Enel France. Furthermore, it represents a first joint development opportunity between Duferco and Enel within a framework of strategic co-operation.