CEZ informed that Hodonin’s power plant starts to increase biomass in its fuel mixture. Last year it produced 62.7 MWh which is 27% y/y growth. CEZ produced 226.4 MWh electric energy by burning biomass, increase of 210% y/y. In Hodonin biomass represent 15% of its overall output the rest is lignite.
CEZ plans to convert all of the Hodonin output to biomass.
Our view:
As CEZ production from renewable resoucrces (excluding water) is marginal and deep below 1% of its total production we see this news as neutral. As the Czech Republic commited to increase it production from renewable resources (including water) from current 4% to 8% by 2010, CEZ is taking steps in this segment and pushing more for wind generation as well.