A view of the Uniper headquarters. Federico Gambarini/dpa
German energy company Uniper said on Thursday that it is significantly slowing down the transformation of its European power plant portfolio towards climate neutrality.
The Dusseldorf-based firm had aimed to increase its share of green electricity production to 80% by 2030, but has now reduced that to 50%, the company said during a presentation of its half-year results.
However the goal of achieving climate neutrality by 2040 remains unchanged, a spokesman said.
“The regulatory and geopolitical environment is challenging,” Uniper chief executive Michael Lewis explained in the statement.
While Uniper welcomes the German government’s plans to build new gas-fired power plants, “the delay in the auction process and thus in the construction of new power plants will postpone potential revenues from these projects until later years.”
Additionally, “the ramp-up of the hydrogen economy will also be slower than expected,” Lewis said, prompting the company to adjust its plans.
Uniper plans new gas-fired power plants
Uniper is one of Europe’s largest electricity generation and gas trading companies.
The company currently operates coal and gas power plants, primarily in Germany, the United Kingdom and Sweden, with a total generation capacity of over 14 gigawatts, equivalent to 14 large coal-fired power plants.
Another 5 gigawatts come from hydropower and nuclear power generation in Germany and Sweden.
By 2030, Uniper expects a total generation capacity of 15 to 20 gigawatts.
Uniper confirmed earlier statements that it plans to invest around €8 billion ($9.3 billion) in energy transformation by the early 2030s, with approximately €5 billion of that to be spent by 2030.
The company reiterated its intention to participate in the German government’s planned tender for new gas-fired power plants.
In the United Kingdom, Uniper is planning to build two new gas-fired power plants, Connah’s Quay and Killingholme, with the capability for carbon capture and storage.
Germany must reduce its stake in Uniper by 2028
Uniper, Germany’s largest gas importer, faced financial difficulties in 2022 when Russia stopped gas deliveries following its attack on Ukraine.
The German government rescued the company with billions in subsidies and became its majority owner with over 99% of shares but is required to reduce its stake to a maximum of 25% plus one share by the end of 2028.