Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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

RWE AG (RWE)

End-of-day quote. End-of-day quote  - 05/04
11.585 EUR   -3.66%
05/02 RWE trading unit sees profit boost from growth prospects
05/02 RWE : Supply & Trading to expand customer business and global activi..
05/02 RWE : Supply %7E Trading to expand customer business and global acti..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 12:06pm CEST

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news on RWE AG
05/02 RWE trading unit sees profit boost from growth prospects
05/02 RWE : Supply & Trading to expand customer business and global activities
05/02 RWE : Supply %7E Trading to expand customer business and global activities
04/28 RWE : Former Npower site earmarked for flats
04/27 RWE : Energy companies are ready for a joint solution to finance the phase out o..
04/26 UK regulator fines ScottishPower 18 million pounds over customer services
04/25 RWE joins UK coal retreat with reduced Aberthaw operations
04/25DJStatoil, E.ON to Develop $1.35 Billion German Offshore Wind Project
04/21 RWE : AGM elects shareholder representatives
04/20DJRWE CEO : Electricity Price Levels an 'Emergency Situation'
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials