The involvement of a Chinese company in the construction of the Awirs gas-fired power plant raises concerns. They are not necessarily justified, but are part of a generally worrying context for the European energy industry.
Antoine draws our attention to a contract signed between Engie and Sepco III, a Chinese company, for the construction of the new gas-fired power plant on the Awirs site, in Flémalle (province of Liège). He is alarmed by this choice which, according to him, gives this Chinese company access to “a lot of sensitive information on the operation and interconnection of our electricity network”, he wrote via the orange Alert us button. And to ask: “At a time when we refuse to use Chinese companies for strategic areas such as the telecom network (5G antennas), why would we agree to do so indirectly in an even more strategic sector, that of our electricity?”
Engie created a stir by choosing a Chinese subcontractor
In October 2021, Engie won the auction organized by Elia, the operator of the high-voltage electricity transmission network, as part of the CRM, the State aid mechanism which must guarantee the country’s long-term security of supply. term after the closure of several nuclear reactors. Therefore, it is up to Engie to implement the Gas-Steam Turbine power plant projects in Vilvoorde and Awirs. Two projects that must be finalized by 2025 at the latest.
In early April 2022, the Flemish daily Het Laatste Nieuws revealed the existence of a contract between Engie and a Chinese multinational, Sepco III, as part of the construction of the new gas-fired power plant on the Awirs site. In the process, Egbert Lachaert (open Vld) claimed the “total transparency” on the Sepco III role. Bert Wollants (N-VA) judged for his part that he was “completely inappropriate that our electricity supply should be placed in the hands of the Chinese”.
Why such concerns?
In Europe, the Middle Kingdom has been investing heavily in companies in the energy sector for about ten years, this sector being part of the new Chinese silk roads and their global deployment. China is developing a policy of buying back electricity distributors across the continent. In Belgium, Chinese investors, for example, tried in 2016 to buy 14% of the capital of the electricity distributor Eandis. An attempt blocked by the city of Antwerp, relates The Bulletin. This activism by China in European energy is not always well received, as Chinese companies are suspected of serving Beijing’s political project.
Sepco III, one subcontractor among others in this construction project
Is there reason to suspect Chinese interference in the contract between Engie and Sepco III? Antoine understands that the Chinese company, after having built the plant, will be “responsible for management and operation” of it. “For the general public, it will be an ‘Engie’ plant, whereas in fact it will be 100% managed by China”, he says. But this is not what Hellen Smeets, spokesperson for Engie Belgium, explains to us: “SEPCO III is responsible for coordinating the construction works until the commissioning of the power plant. This means that after commissioning, they are no longer involved in the operation of this unit. Engie will operate the plant”.
Engie is subcontracting the construction works and their coordination, but will operate and maintain the plant. “What is his area of expertise”, emphasizes Hellen Smeets. And to specify: “SEPCO III is just one of the parties with which Engie will work to build the plant in Flémalle. In total, more than 500 people are involved in the construction of the plant, including a limited delegation from SEPCO III (less than 10 %)”.
The FPS Economy monitors foreign direct investments and the possible threat to national security that they could represent. But Stéphanie Maquoi, spokeswoman for Federal Energy Minister Tinne Van der Straeten, insists that“Engie is and remains the 100% owner, shareholder and operator of the Flémalle power plant”. And to add: “We share the concern that we must be vigilant with regard to the infrastructures which are essential to our security of supply. In this case, it is essential that the role of this Chinese company is limited to that of a subcontractor”.
There is nothing very confidential about knowing the plans of gas plants
Engie and the authorities therefore want to be reassuring. Damien Ernst, professor at the University of Liège and specialist in energy issues, is hardly more worried about this issue. Unlike our alerter Antoine, he does not believe that this subcontractor will have access to sensitive information as part of this project: “SEPCO III is just building the plant so they will have the gas plant plans in the worst case, but there is really nothing very confidential about knowing the gas plant plans. there are no really particular technologies, no critical things”he explains.
No dependence on Chinese equipment for the Awirs power plant
In addition, Engie specifies that the technology used for the construction of the plant is European. “Siemens Energy is the main supplier of gas and steam turbines and generators, so this equipment will be built entirely in Europe”, says Hellen Smeets. An element considered important by Damien Ernst: “There will be no dependency on Chinese hardware. Because if you build a plant with only Chinese hardware, for maintenance you will need to have Chinese parts. There, it will not be the case”.
A choice revealing the weakness of the European energy industry
According to Damien Ernst, what is worrying is rather the poor shape of the European energy industry. “The fact that this contract is awarded in China is an indication that the Chinese know how to work cheaper than us”, observes the specialist. Indeed, Engie says that “The choice fell on the company SEPCO III following an international call for tenders, in order to select a contractor capable of offering the best quality/price ratio on an international market where the number of qualified actors for such large construction projects is limited”. “It means that we no longer really have a European company, even for gas-fired power stations, which know how to compete”Damien Ernst regretted. “On this point, it is dramatic and worrying”.