Siemens Energy, which builds steam turbines for power plants, will no longer take on new business to supply coal-fired powered stations thus making it the latest firm to scale back fossil fuel-related operations.
Selling turbines to coal-fired power plants accounts for a low single-digit percentage of the company’s sales, or roughly 820 million euros ($970 million) based on 2020 figures.
Although this business is profitable, still in the light of Siemens Energy ‘climate commitment’ they will cease to take new orders for the same however will still meet existing commitments, including placed bids, and honour service contracts for combined heat and power stations.
Siemens Energy, which owns 67% of wind turbine maker Siemens Gamesa, makes about 30% of its sales by catering to fossil-fuel power stations, mostly gas, where it competes with General Electric and Mitsubishi Heavy Industries.
Siemens Energy, in which Siemens AG and its pension fund retain 45%, still expects 2021 sales to grow 2%-12% and adjusted EBITA before special items to rise by 3%-5%.
“Accompanying its customers on the path of energy transformation and providing the necessary technologies and solutions – that is the mission of the company. With this step, Siemens Energy continues its transformation towards a more sustainable and growth-oriented portfolio.”
This is a PRNewswire; edited by Clean-Future Team