German utility RWE AG (RWE.XE) Monday said it has received approval from the local government of Arnsberg to build a new hard-coal power plant in Hamm, a city in North-Rhine Westphalia, at an investment of approximately EUR2 billion.
From a legal point of view, the approval paves the way for construction of the plant, the company said, adding that preparatory measures are under way.
"Now, further steps can be undertaken," the company said.
RWE said Feb. 19 it had entered into a long-term partnership with municipal utilities under which RWE Power AG and 23 municipal utilities from North-Rhine Westphalia, Hesse and Rhineland-Palatinate will participate in the construction of a joint hard-coal power plant in Hamm.
The new plant is to commence operations in 2011 and will have an output of 1,600 megawatts.