German energy group RWE AG (ETR:RWE) today presented its “new face” following the renewables-themed asset-swap with peer E.on SE (ETR:EOAN) and unveiled its goal to become carbon neutral by 2040.
The new RWE will focus mainly on growth in renewables, expecting this type of energy sources to generate 60% of its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the future.
The transformed group describes itself as “the world’s No 2 in offshore wind and Europe’s No 3 in renewable energy.” It comprises four operating companies: RWE Renewables, RWE Supply & Trading, RWE Generation and RWE Power. Together, they are associated with a 45.9-GW portfolio, currently including 14.1 GW of gas, 10.3 GW of lignite, 9.5 GW of renewables, 6.5 GW of hard coal, 2.8 GW of nuclear and 2.7 GW coming from other sources.
“We will make huge investments in wind and solar power as well as in high-capacity storage technologies,” said Rolf Martin Schmitz, CEO of RWE.
RWE plans to pour EUR 1.5 billion (USD 1.63bn) in offshore and onshore wind, solar photovoltaics (PV) and energy storage per year, while project partnerships are seen to boost the total annual investment in renewables to between EUR 2 billion and EUR 3 billion. The group will rely on a diversified portfolio not only when it comes to technologies, but also regions, in order to “minimise interdependencies resulting from changing regulatory and political framework conditions,” it said.
As per its carbon neutrality goal, RWE will pursue a 70% reduction of its carbon dioxide (CO2) emissions by 2030 compared with 2012 levels. It will decommission its last UK coal-fired power station and convert its Eemshaven and Amer plants in the Netherlands to fire biomass. In Germany, it will take offline more of its coal facilities gradually. The gas-fired power stations will primarily be fired by “green” gas.
(EUR 1.0 = USD 1.09)
Choose your newsletter by Renewables Now. Join for free!