Siemens Energy stops taking on new coal-related contracts

2020-11-12 Reuters

 Siemens Energy has said it will no longer take on new business to supply coal-fired powered stations, 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 $970 million based on 2020 figures. It has said the business is profitable.

Siemens Energy will still meet existing commitments, including placed bids, and honour service contracts for combined heat and power stations.

“Accompanying its customers on the path of energy transformation and providing the necessary technologies and solutions – that is the mission of the company,” it said.

“With this step, Siemens Energy continues its transformation towards a more sustainable and growth-oriented portfolio.”

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.

Fourth-quarter earnings before interest, tax and amortisation (EBITA) before special items fell 87% to $83 million due to impairments and restructuring costs.