June 23, 2016 / 8:42 AM / 2 years ago

Vattenfall to invest 3 bln euros in Germany - CEO

FRANKFURT, June 23 (Reuters) - Swedish state-owned utility Vattenfall plans to invest 3 billion euros ($3.4 billion) in Germany over the next few years, its chief executive said in Thursday’s edition of German newspaper Handelsblatt.

Most of the money would be invested to support the energy transition of Berlin towards renewables, CEO Magnus Hall was quoted as saying.

Other German cities also provided room for growth when it came to operating district heating grids and the decentralised supply of energy and heat, he told the paper.

“In addition, there will be a lot of growth in wind power in Germany in the coming years,” Hall said.

The utility is committed to cutting its carbon emissions significantly to become a green energy provider by 2050 at the latest.

In mid-April, Czech investor EPH agreed to buy Vattenfall’s loss-making lignite coal mines and associated power plants in Germany which the Swedish firm had been operating since the 1990s and dropped after its focus on green energy.

Hall said there was “no reason to doubt” EPH’s expertise.

The deal, which is subject to government and regulatory approval, is opposed by environmentalists in Germany and Sweden, who object to keeping the highly carbon-polluting technology.

Vattenfall was waiting for the Swedish government to give the green light, Hall said.

The deal is expected to cut Vattenfall’s carbon emissions to below 25 million tonnes per year from over 80 million tonnes now.

“We expect antitrust approval by the European Commission during the course of this summer and after that the sale should be completed by August 31,” Hall told Handelsblatt.

$1 = 0.8817 euros Reporting by Tina Bellon; Editing by Dale Hudson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below