German energy company Uniper is “slowly gathering speed” in the renewables sector and plans to spend €500mn ($566mn) this year on green growth businesses, according to CEO Klaus-Dieter Maubach.

The money will go primarily towards renewables, green gases and green thermal generation. “That we are not a renewables frontrunner is no secret,” Maubach said in comments prepared for the company’s 2021 results presentation.

Uniper—in which Finnish energy company Fortum holds a majority stake—is well placed to help drive the hydrogen economy in Germany and in Europe, says Maubach.

“All our current gas activities—our experience in trading, structuring, marketing, transport and storage—all of it is applicable to green and low-carbon gases,” he notes.

The company is involved in several hydrogen projects in industrial clusters around Europe and is developing a major green hydrogen hub at the north German port of Wilhelmshaven that could meet about 15pc of Germany’s hydrogen needs by 2030.

“All our current gas activities…is applicable to green and low-carbon gases” Maubach, Uniper

Maubach calls on the German government to deliver policies to support new investment in gas-fired power generation, which he says has a key role to play as a transitional technology. Uniper is ready to invest in 2GW of gas-fired generation capacity “under the right conditions”, Maubach says. “But ultimately this is a matter for policymakers,” he adds.

The German government intends to present proposals for the investment framework for hydrogen-ready gas-fired power plants later this year.

A joint study by management consultancy Boston Consulting Group and industry body the Federation of German Industries estimates Germany will need 60 new gas-fired power plants with a total capacity of 40GW by 2030.

“Today is 23 February 2022, and construction has not yet begun on a single one of these much-needed gas plants. If you consider the time it takes to approve and build such a plant, meeting this target is going to be challenging,” Maubach warns.

Referring to the recently installed coalition government’s ambitious targets on the deployment of renewables and emission cuts, Maubach adds: “I am certain that the energy transition will succeed, even though Germany has set the hurdles very high. This means that we will just have to jump higher than other countries.”

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Author: Stuart Penson