Siemens Energy will no longer participate in tenders for pure coal-fired power plants, the recently spun-off energy technology giant said when presenting financial results.
The company however will still meet existing commitment for coal-fired power plants, including binding offers, and also continue in the business of combined heat and power (CHP) projects, which can be coal-fired or gas-fired.
Gas and power turbine technology is the main business at the former Siemens unit, with revenues reaching €4.79bn during its fiscal fourth quarter, which ended in September, compared to revenues of €2.69bn at its Siemens Gamesa wind turbine subsidiary.
Nevertheless, sustainable solutions already generate more than half of Siemens Energy’s revenue, the company said, stressing it continues its transformation toward a more sustainable and growth-oriented portfolio.
Next to gas and steam turbines, generators, and wind turbines, Siemens Energy also is in the businesses of offshore wind transmission technology and green hydrogen.
Skeptical climate activists
The phasing out of pure coal-power plant technology comes amid a decline in coal generation in Europe and the US, and public pressure to move away from climate-killing business areas, although activists think the company is doing too little, too late.
In an attempt to approach the climate movement, Siemens CEO Joe Kaeser in January had offered a seat on the board of Siemens Energy to Luisa Neubauer, Germany’s best-known activist from Fridays for Future, but Neubauer declined, fearing for her independence.
Siemens Energy began trading at the Frankfurt stock exchange in late September after a successful spin-off from industrial conglomerate Siemens AG, which nevertheless remains its largest shareholder. Siemens Energy owns 67% in wind turbine maker Siemens Gamesa.
“I am proud how our Siemens Energy team managed the macroeconomic challenges, successfully executed the spin-off of our company while further streamlining our portfolio,” Siemens Energy chief executive Christian Bruch said.
“With an outstanding and committed team we look forward to the transformation journey that lies ahead of us, as we are opening a new chapter as Siemens Energy.”