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The
German cabinet on Wednesday backed plans to exit coal as an
energy source by 2038 as part of efforts by Chancellor Angela
Merkel's ruling coalition to protect the climate and restore its
green credentials.
Uniper, formed in 2016 after being spun off from E.ON, has drawn
up plans to shut down about 1.5 gigawatts of capacity involving
three blocks at its Scholven plant plus the Wilhelmshaven power
station by the end of 2022, it said.
It will then shut a further 1.4 GW at its Staudinger and Heyden
sites by end-2025, the group added, confirming an earlier
Reuters story.
Uniper shares were up 1% at 1120 GMT, giving it a market value
of 11.1 billion euros ($12.3 billion).
"We're setting Uniper on a decisive course for the future: our
actions will provide planning security to our employees at the
facilities affected and give our company the financial and
structural flexibility to focus on important, sustainable
projects," CEO Andreas Schierenbeck said.
The planned closures represent about half of Uniper's total hard
coal-fired capacity in Europe and come as investors and
governments demand sustainable business models that do not rely
on fossil fuels.
COMPENSATION
The planned closures would cut Uniper's carbon emissions by
about 18 million metric tonnes per year, it said.
Schierenbeck told Reuters last week that the group planned to
significantly slash its CO2 emissions, which stood at 59.5
million metric tonnes in 2018, half that of larger peer RWE,
Europe's biggest polluter.
In return for the closures Uniper will likely qualify for
government compensation payments.
Based on compensation terms announced by the government this
week, Uniper could receive 365 million euros if it succeeds in
planned auctions that will allocate closure permits to the least
expensive bidders.
Uniper has said it plans to develop former plant sites to help
preserve jobs. The government wants former coal sites to be used
for facilities such as gas-fired combined heat and power plants.
The plans do note affect Datteln 4, Uniper's new 1.5 billion
euro state-of-the-art coal-fired power plant which is scheduled
to go on-line in mid-2020.
Uniper's largest shareholder is Finland's Fortum, which holds a
49.99% stake. That holding could top 70% if a deal with activist
funds Elliott [ECAL.UL] and Knight Vinke goes through.
(Editing by Riham Alkousaa and Jason Neely)
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