Ukraine's DTEK aims to renew infrastructure for switch from coal

• DTEK and GE Vernova will develop a 650-megawatt combined-cycle gas turbine at the Burshtyn power plant with a €900 million budget, targeting commercial operation before 2032
• About 80% of DTEK's coal-fired power station equipment was damaged or destroyed by Russian attacks last winter, requiring €300 million in repairs split between own funds and partner financing
• The company plans a 650 MW wind park in Poltava region and aims to import 6-12 LNG cargoes annually (1-1.2 billion cubic meters) over the next 1-2 years through its D.Trading business

Summary

Ukraine's largest private power producer DTEK announced plans to phase out coal generation by 2035, transitioning to natural gas and nuclear power in alignment with Ukraine's national energy strategy and targeting net zero emissions by 2050.

Key Deal and Investment:

DTEK signed a memorandum with U.S.-based GE Vernova to develop a €900 million ($1.02 billion) 650-megawatt combined-cycle gas turbine at the Burshtyn power plant in Western Ukraine, with commercial operations targeted before 2032. The site currently operates on coal.

Infrastructure Damage:

Russia's war has destroyed approximately 80% of equipment at DTEK's coal-fired power stations during last winter's attacks. The company will spend €300 million on repairs—half self-financed, half through partners.

Future Projects:

• A 650 MW wind park in the Poltava region, set to be the region's largest onshore wind farm, with construction expected to begin next year
• Investment in small modular nuclear reactors planned beyond 2030

LNG Trading Expansion:

DTEK's trading arm, D.Trading, imported its first U.S. LNG cargo in December 2024 and aims to become a "visible player" in European markets. The company targets importing 6-12 LNG cargoes annually (1-1.2 billion cubic meters) over the next one-to-two years, with discussions underway regarding imports through Poland.

Market Context:

Unlike many countries hesitating on energy transition investments, Ukraine has been forced to renew infrastructure due to ongoing conflict, creating opportunities for modernization away from carbon-intensive coal generation.