Reports related to this article:
Plant(s): View 6 related plants in PECWeb
Released November 27, 2014 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Germany's coalition government is split over the future of coal-fired power in the country with just a week to go until it must present a new climate action plan.
It has emerged that Sigmar Gabriel, the German Economy Minister, wrote to Sweden's new Prime Minister, Stefan Löfven last month, appealing for him to prevent state-owned Vattenfall AB (Stockholm, Sweden) from aborting plans to expand two coal mines in Germany's northeast. He warned that the move would seriously damage electricity supplies in the region and result in widespread job losses. However, just two weeks ago Vattenfall announced the planned sale of its German coal-fired plants and coal mines.
Vattenfall CEO, Magnus Hall, explained: "We have a clear strategy to reduce our CO2-exposure and to transform our business into a more renewable based portfolio," explained Magnus Hall, CEO and president of Vattenfall. "The Board of Directors has decided that Vattenfall will explore options for creating a sustainable, new ownership structure for the lignite operations. We recognise the current and future importance of lignite based generation for the local economy and the German energy policy." For additional information, see November 10, 2014, article - Vattenfall to Sell German Coal Operations.
Vattenfall is also suing the German government for a reported 4.7 billion ($6 billion) for losses suffered when Germany voted to get out of nuclear power in 2011. For additional information, see October 27, 2014, article - Vattenfall Sues Germany for Nuclear Losses.
At the same time Gabriel was appealing for Sweden to not abandon German mines and plants, documents seen by Reuters show that the government has prepared draft legislation that could see the closure of a number of coal-fired plants in order to reduce the country's emissions footprint. Despite being a renewable energy powerhouse in Europe, Germany relies on coal for 45% of its electricity. According to the draft legislation the government wants energy utilities to cut their emissions by 22 million tons by 2020. This could mean the closure of up to eight more coal-fired plants. The German government has already admitted that it may miss its 2020 target of cutting emissions by 40% by between 5% and 8%.
Earlier this month, Industrial Info reported on Germany and Denmark were evaluating plans to significantly reduce coal-fired power from their electricity mixes. For additional information, see November 7, 2014, article - Coal Power Under Fire in Europe.
Gabriel has warned repeatedly against ditching coal in haste, especially after the government's 2011 decision to drop nuclear power. In his letter to the Swedish PM, seen by the Financial Times, he said the getting out nuclear by 2022 was necessary but "we also strongly believe that we cannot simultaneously quit nuclear energy and coal-based power generation. Dear Stefan, Germany will indeed phase out fossil power generation as well -- but at a gentler speed that can somehow be managed in terms of its consequences."
However, Germany's Environment Minister, Barbara Hendricks, has warned that if Germany fails to reduce its coal use it will miss its 2020 emissions goal.
View Plant Details -- 3066380 3061871 1080825 1080381 1071570 1078676
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
It has emerged that Sigmar Gabriel, the German Economy Minister, wrote to Sweden's new Prime Minister, Stefan Löfven last month, appealing for him to prevent state-owned Vattenfall AB (Stockholm, Sweden) from aborting plans to expand two coal mines in Germany's northeast. He warned that the move would seriously damage electricity supplies in the region and result in widespread job losses. However, just two weeks ago Vattenfall announced the planned sale of its German coal-fired plants and coal mines.
Vattenfall CEO, Magnus Hall, explained: "We have a clear strategy to reduce our CO2-exposure and to transform our business into a more renewable based portfolio," explained Magnus Hall, CEO and president of Vattenfall. "The Board of Directors has decided that Vattenfall will explore options for creating a sustainable, new ownership structure for the lignite operations. We recognise the current and future importance of lignite based generation for the local economy and the German energy policy." For additional information, see November 10, 2014, article - Vattenfall to Sell German Coal Operations.
Vattenfall is also suing the German government for a reported 4.7 billion ($6 billion) for losses suffered when Germany voted to get out of nuclear power in 2011. For additional information, see October 27, 2014, article - Vattenfall Sues Germany for Nuclear Losses.
At the same time Gabriel was appealing for Sweden to not abandon German mines and plants, documents seen by Reuters show that the government has prepared draft legislation that could see the closure of a number of coal-fired plants in order to reduce the country's emissions footprint. Despite being a renewable energy powerhouse in Europe, Germany relies on coal for 45% of its electricity. According to the draft legislation the government wants energy utilities to cut their emissions by 22 million tons by 2020. This could mean the closure of up to eight more coal-fired plants. The German government has already admitted that it may miss its 2020 target of cutting emissions by 40% by between 5% and 8%.
Earlier this month, Industrial Info reported on Germany and Denmark were evaluating plans to significantly reduce coal-fired power from their electricity mixes. For additional information, see November 7, 2014, article - Coal Power Under Fire in Europe.
Gabriel has warned repeatedly against ditching coal in haste, especially after the government's 2011 decision to drop nuclear power. In his letter to the Swedish PM, seen by the Financial Times, he said the getting out nuclear by 2022 was necessary but "we also strongly believe that we cannot simultaneously quit nuclear energy and coal-based power generation. Dear Stefan, Germany will indeed phase out fossil power generation as well -- but at a gentler speed that can somehow be managed in terms of its consequences."
However, Germany's Environment Minister, Barbara Hendricks, has warned that if Germany fails to reduce its coal use it will miss its 2020 emissions goal.
View Plant Details -- 3066380 3061871 1080825 1080381 1071570 1078676
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
