Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Shares  >  Xetra  >  RWE AG    RWE   DE0007037129


News SummaryMost relevantAll newsSector news 

RWE AG : RWE Scales Down Biomass Activities to Focus on Wind, Hydro Energy

02/22/2013 | 06:06am US/Eastern

By Jan Hromadko

FRANKFURT--The renewable energies unit of German power and gas utility RWE AG (RWE.XE) is narrowing its focus to concentrate on wind and hydro power, reducing its activities in biomass fuels like wood and straw, presently its third core area in "green" energy production, the company said Friday.

"RWE no longer considers the business with smaller biomass facilities as core business," said a spokesman for RWE Innogy.

Going forward, the company doesn't plan further substantial investment in biomass facilities, the spokesman added.

The comments coincided with the announcement of the sale of majority stakes in two small German biomass facilities to Koehler Renewable Energy GmbH, a unit of Germany's Koehler Holding GmbH. No financial details of the transaction were disclosed.

RWE Innogy said, however, that the sale reflects the company's tight financial situation.

"In times of scarce [financial] resources the transaction contributes to retain the financial leeway for projects, particularly in wind and hydro energy," the company said.

Like other energy utilities across Europe, RWE is suffering from falling energy demand and lower prices, which have eroded the profitability of electricity production.

In response to the increasingly challenging market environment, RWE is implementing a cost-cutting program through which it hopes to wring savings of around 1 billion euros ($1.3 billion) through 2014.

Other measures aimed at conserving cash include a program to dispose of EUR7 billion in assets by the end of this year.

Citing Hans Buenting, chief executive of RWE's renewable energies unit, German daily newspaper Handelsblatt earlier Friday reported that the company is considering disposing of other biomass businesses, including a wood pellets factory in Waycross, Georgia.

The company spokesman said that other disposals cannot be ruled out, but added that no decisions have yet been made.

However, while smaller biomass facilities are no longer part of RWE's core business, the company said it still plans to use biomass as fuel in industrial-scale power plants, like its U.K.-based biomass power station in Tilbury.

The former coal-fired power plant was converted in 2011 to burn wood pellets, which RWE sources from its factory in Georgia.

Write to Jan Hromadko at jan.hromadko@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news on RWE AG
10/08 LECHWERKE : Dividende für das Geschäftsjahr 2015 (DGAP News)
10/06 MIKHAIL FRIDMAN : Russian billionaire Fridman nears deal for E.ON's North Sea as..
10/05 RWE : Emirate of Dubai and RWE Middle East engage in closer collaboration
10/05 GRUPA AZOTY : Zaklady Azotowe Pulawy' S.A. signed a new contract for delivery of..
10/05 RWE : Trianel and RWE to Invest USD893.4 Million in Borkum West II Offshore Wind..
10/03 RWE : AM joins objectors in turbine plan fight ; ?FELINDRE
10/02 RWE : Emirate of Dubai and RWE Middle East engage in closer collaboration
10/02 RWE : Grupa Azoty Zaklady Azotowe „Pulawy” S.A. signed a new contrac..
09/29 RWE : Publication of a Voting Rights announcement according to Articles 26 and 2..
09/28 RWE : Publication of a post-admission duties annoucement
Duration : Period :
RWE AG Technical Analysis Chart | RWE | DE0007037129 | 4-Traders
Income Statement Evolution
More Financials