Viridian to build another power plant

NORTHERN energy group Viridian is to build a 400 megawatt power station beside its plant at Huntstown in north Dublin.

In a trading statement the company said it had reached agreement on the construction of the €250m plant with Mitsubishi Corporation. Full planning permission has been granted and the group has signed a connection agreement with its arch-rival, the ESB.

Construction should start in spring 2005, with the plant completed by mid-2007. The station's output will be sold to its customers in the Republic through subsidiary Energia.

Viridian has decided to go ahead with the second phase based on growing electricity demand here a trend that was likely to continue as the economy continues to show strong growth.

Results for the six months to the end of September will be in line with expectations, boosted by the sale of some of its property interests, the group said.

Last year, in the Republic, Viridian turnover increased from £97m to £127.9m. Profits increased significantly from £4.8m to £14.4m reflecting a full-year contribution from Huntstown together with increased volumes and improved margins for Energia. The market here accounts for 17% of the company's turnover.

Overall, the group reported a 5% rise in annual pre-tax profits, helped by strong growth at its main units and strong demand for electricity.

Underlying pre-tax profits for the year ending March 31 rose to £112.5m from £106.9m the previous year. Turnover rose by 7% to £834.2m from £781.2m.