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Siemens Energy announces immediate exit from new coal projects

President and CEO Siemens Energy

Siemens Energy today announced that it was withdrawing from all new coal projects.

Chief executive Christian Bruch (pictured) told a press conference: “Effective immediately, we cease supporting the development of new coal-fired power plants.”

He explained that while the company would honour all existing coal-related agreements, it would no longer bid for tenders for pure coal-fired projects.

“Sustainability is at the core of our actions,” he said, which in turn made taking on new coal projects untenable.

He said existing technology partnerships “will be addressed” in light of the coal withdrawal, and the company was in the process of evaluating the impact of the decision on its own staff and sites.

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Bruch was speaking during the inaugural annual press conference for Siemens Energy since the company spun-off from Siemens AG earlier this year and in September listed on the Frankfurt stock exchange.

Bruch: “We cease supporting the development of new coal-fired power plants.”

The company has two arms: Siemens Gas and Power, comprising generation, transmission and industrial applications; and Siemens Gamesa Renewable Energy, made up of onshore and offshore wind power plus service operations

Bruch said Siemens Energy had had a “successful start to transformation journey” – and added that “this journey will take some time.”

The company’s listing “gave us entrepreneurial freedom” he said, explaining that the ambition was to “become the most renowned energy technology company in the world.”

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Like all other businesses, Siemens Energy was affected by the Covid-19 pandemic. Chief operating officer Maria Ferraro revealed that new orders decreased 24% to 7 billion Euros, primarily as orders were postponed due to coronavirus in the gas and power segment, and revenue dropped 8% to €7.6bn in the fourth quarter, again impacted primarily by an 11% decline in revenue in the gas and power segment caused by pandemic-related delays and postponements.

“In a market environment that remains challenging and uncertain, Siemens Energy delivered a solid fourth quarter,” said Ferraro. She said “we continue to diligently review all levers to improve our cost efficiency which increase profitability and cash flow. It is a journey, although we see progress so far and are on the right track.”