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These include plans by ArcelorMittal , the world's second-largest steelmaker, to spend 2.5 billion euros to decarbonise its German steel mills, efforts that depend on now-uncertain government support. "What we're seeing here is devastating for Germany as a business location globally. Besides the 6 billion euros of steel investments, other sectors potentially affected by the court ruling include 4 billion euros in the area of microelectronics and 20 billion euros for battery cell production, according to an economy ministry paper seen by Reuters. Those have previously been estimated at 68 billion euros. "Important industries in Germany, such as chemicals or steel production, need economical energy prices," Oliver Blume, CEO of Europe's top carmaker Volkswagen (VOWG_p.DE), told Frankfurter Allgemeine Zeitung.

Persons: Olaf Scholz, Robert Habeck, Christian Lindner, Reiner Blaschek, Chancellor Olaf Scholz, Stefan Rauber, Intel INTC.O, Taiwan's, Bernhard Osburg, Oliver Blume, Christoph Steitz, Tom Kaeckenhoff, Andreas Rinke, Catherine Evans Organizations: Climate, Finance, ArcelorMittal, SHS Stahl, Reuters, IMF, Intel, TW, Infineon, Steel, BASF, Wacker Chemie, Volkswagen, Frankfurter Allgemeine Zeitung, Thomson Locations: FRANKFURT, DUESSELDORF, Berlin, Germany, Asia, United States, U.S, USA, Steel Europe

Steel coils are waiting for delivery at the storage and distribution facility of German steel maker ThyssenKrupp in Duisburg, Germany, November 16, 2023. As a result of the impairment, Thyssenkrupp, which has been trying to divest its steel division for several years, posted a 2-billion-euro net loss for the fourth quarter. Shares of the company, which proposed a stable dividend of 0.15 euros apiece, were indicated to open 1.8% lower in pre-market trade. Thyssenkrupp - which apart from steel builds submarines, car parts and operates a large materials trading business - said it was in constructive and open-ended talks with EPH about a potential steel joint venture. EPH, controlled by Czech billionaire Daniel Kretinsky, would support Thyssenkrupp Steel Europe with its energy expertise in any joint venture, the company said.

Persons: Wolfgang Rattay, Miguel Lopez, Daniel Kretinsky, Thyssenkrupp, Christoph Steitz, Tom Kaeckenhoff, Sandra Maler, Miranda Murray, Sherry Jacob, Phillips Organizations: REUTERS, Wednesday, EPH, Thyssenkrupp Steel, Thomson Locations: Duisburg, Germany, FRANKFURT, DUESSELDORF, Czech, Europe

Miniatures of windmill and electric pole are seen in front of Siemens Gamesa logo in this illustration taken January 17, 2023. One Frankfurt-based trader said the investor event, where Siemens Gamesa disclosed around 400 million euros in cost cuts by 2026, was bringing "no new insights". At 1610 GMT, shares in Siemens Energy, in which Siemens AG (SIEGn.DE) owns a direct 25.1% stake, were still down 6.3%. Siemens Gamesa will likely cut onshore turbine capacity outside Europe and outsource the production of some components, the division's Chief Executive Jochen Eickholt said, outlining the group's restructuring roadmap. Reuters last month reported that Siemens Gamesa was considering shutting plants and sales offices as well as outsourcing some production.

Persons: Dado Ruvic, Siemens Gamesa, Christian Bruch, Jochen Eickholt, Eickholt, Christoph Steitz, Tom Kaeckenhoff, Danilo Masoni, Madeline Chambers, Miranda Murray, David Evans Organizations: Siemens, REUTERS, Siemens Energy, Siemens Gamesa, Siemens AG, Reuters, Thomson Locations: Europe, FRANKFURT, DUESSELDORF, Frankfurt

Underscoring the frustration, Economy Minister Robert Habeck, a member of the pro-spending Greens, called the verdict "a huge blow to industrial policy". Speaking to parliament, Habeck warned the court ruling put at risk support for the steel sector, which is counting on subsidies to decarbonise and stay competitive. Finance Minister Christian Lindner meanwhile said it was too early to discuss the consequences of the court ruling. "The steel industry alone can contribute to reducing a third of total industrial emissions - and thus has enormous leverage to save millions of tons of CO2 in the coming years." "The political bottom line is that many coalition disputes will reopen as serious budget constraints kick in.

Persons: Olaf Scholz, Christian Lindner, Robert Habeck, BERLIN, Wednesday's, Chancellor Olaf Scholz, Habeck, Yesenn, DBRS Morningstar, hawkish Lindner, Lindner, Bernhard Osburg, Carsten Brzeski, Eurointelligence, Maria Martinez, Christian Kraemer, Andreas Rinke, Markus Wacket, Tom Kaeckenhoff, Matthias Williams, Alexandra Hudson, Susan Fenton Organizations: Finance, Climate, Economy, Greens, CHANGE, Budget, European Central Bank, Thomson Locations: United States, Berlin, Germany

☆ Explainer: Why is Siemens Energy seeking $16 billion state guarantees?
▼ + stars: | 2023-10-29 | by ( ) www.reuters.com time to read: +5 min

The logo of energy technology company Siemens Energy is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. To make sure it can get the guarantees to fulfil its order backlog, Siemens Energy has turned to the government. Siemens owns a 25.1% stake in Siemens Energy and has not ruled out helping. Siemens still provides around 7 billion euros of performance guarantees to projects Siemens Energy is working on, significantly down from the 40 billion euros at the time of the spin-off around three years ago. Apart from seeking guarantees from the government, banks and Siemens, Siemens Energy said it is "evaluating various measures to strengthen the balance sheet", without elaborating further.

Persons: Chris Helgren, Banks, Roland Busch, hade, Andreas Rinke, Christoph Steitz, Victoria Farr, Andres Gonzalez, Pablo Mayo, Alexander Huebner, Tom Kaeckenhoff, Josephine Mason, Susan Fenton Organizations: Siemens Energy, REUTERS, Siemens, International Chamber of Commerce, German Economy Ministry, SIEMENS, Triton, Pablo Mayo Cerqueiro, Thomson Locations: Vancouver , British Columbia, Canada, downpayments, Berlin, Frankfurt, London, Munich

☆ German engineering production to fall further in 2024- VDMA association
▼ + stars: | 2023-09-12 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing RightsBERLIN, Sept 12 (Reuters) - Germany's engineering association (VDMA) expects production in the sector to extend its decline next year, falling 2% dragged by weak orders domestically and abroad, its Chief Economist Ralph Wiechers said. Wiechers confirmed VDMA production forecast for 2023 of a 2% drop, adding that losses in the second half of the year would eat up the 1.7% growth recorded in the first six months. "2024 will be a kind of transition year," Wiechers told Reuters. German exports to China grew by 4.4% in the first half of the year but growth was still significantly less than in the United States where sales rose by 21.6%. Reporting by Tom Kaeckenhoff; Writing by Riham Alkousaa; Editing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

Persons: Kuka, Mercedes Benz, Kai Pfaffenbach, Ralph Wiechers, Wiechers, Tom Kaeckenhoff, Riham Alkousaa, Tomasz Janowski Organizations: Daimler, REUTERS, Rights, Reuters, Thomson Locations: Rastatt, Germany, Ukraine, China, United States

☆ German court throws out lower grid operator returns set by regulator
▼ + stars: | 2023-08-30 | by ( ) www.reuters.com time to read: +2 min

Electrical power pylons with high-voltage power lines are seen next to wind turbines near Weselitz, Germany November 18, 2022. REUTERS/Lisi Niesner/File Photo Acquire Licensing RightsFRANKFURT, Aug 30 (Reuters) - A German court on Wednesday threw out the rates of return for power and gas network infrastructure operators set in 2021 by the grid regulator, saying companies were right to complain they were too low. The federal regulator, called the Bundesnetzagentur, had set permitted future returns for new power and gas infrastructure at 5.07%, versus 6.91% previously, leading 900 operators of local distribution networks to launch an appeal. The court in June heard test cases from 14 selected companies and upheld their arguments, it said in a statement. Leading power grid companies including E.ON (EONGn.DE) and EnBW (EBKG.DE) have said they need more money to remain competitive when billions of euros must be spent to accommodate more wind and solar power production plants on the grids.

Persons: Lisi Niesner, Kerstin Andreae, Vera Eckert, Tom Kaeckenhoff, Mark Potter, Mark Porter Organizations: REUTERS, Rights, Wednesday, E.ON, Thomson Locations: Weselitz, Germany, Ukraine

FRANKFURT/LONDON, July 26 (Reuters) - German industry is finding new ways to transport cargoes from coal to chemicals as increasingly frequent low water levels on the Rhine disrupt Europe's largest economy. At Kaub , the critical chokepoint for Rhine barges, water levels fell to their lowest this year earlier this week. ARTERY OF THE ECONOMYThe impact of low water levels is not limited to big business. But logistics firms are benefiting from rising demand for vessels adapted to lower river levels. "We expect, due to climate change, that the extremes on the river Rhine will happen more often," said Maickel Uijtewaal, general manager at Stolt-Nielsen (SNI.OL).

Persons: Uwe Arndt, Barbara Hoyer, majeure, Roberto Spranzi, Maickel Uijtewaal, Steffen Bauer, Christoph Steitz, Vera Eckert, Ludwig Burger, Patricia Weiss, Rene Wagner, Nette, Tom Kaeckenhoff, Matthias Inverardi, Vincent Flasseur, Barbara Lewis Organizations: Federal Waterways, Shipping Agency, Reuters Graphics, Cologne, BASF, Reuters Graphics Reuters, Kiel Institute, Deutsche Bank, Reuters, Stolt, Nielsen, HGK Shipping, Daniels, Midland Co, Chemicals, Thomson Locations: FRANKFURT, LONDON, Kaub, Europe, Reuters Graphics Germany, Ludwigshafen, HGK, Frankfurt, Berlin, Duesseldorf, London

It comes as hydrogen technology is getting a boost from favourable legislation in the United States and Europe, which are both seeking to strengthen the technology to help carbon dioxide-heavy industries, including steel and chemicals, to decarbonise. "A potential IPO would enlarge the financial flexibility of Thyssenkrupp Nucera and raise its profile as a leading supplier of technology for the production of green hydrogen," he said. The listing, which is run by Citi (C.N) and Deutsche Bank (DBKGn.DE), will primarily consist of new shares, Thyssenkrupp Nucera said. First-half sales were up 74% at 306 million euros, while the group's earnings before interest and tax rose 87% to 13.3 million euros. "With our electrolysis technology we want to shape a new era of the energy transition," said Werner Ponikwar, chief executive of Thyssenkrupp Nucera.

Persons: Nora, Italy's De Nora, DNR.MI, Miguel Lopez, Thyssenkrupp, Thyssenkrupp Nucera, De Nora, Nora's, Norway's Nel, Werner Ponikwar, Christoph Steitz, Tom Kaeckenhoff, Francesca Landini, Miranda Murray, Clarence Fernandez, Sharon Singleton Organizations: Reuters, Citi, Deutsche Bank, Thyssenkrupp, Britain's ITM, Energy, U.S ., Thomson Locations: FRANKFURT, DUESSELDORF, Ukraine, United States, Europe, U.S

The letter did not disclose either how much Berlin had proposed in state help, or by how much this had been reduced. The conflict lays bare how much industrial heavyweights depend on aid to decarbonise their businesses as well as the need for governments to approve subsidies quickly to avoid companies from shifting investments or stopping them altogether. Thyssenkrupp in August made the investment decision for the so-called direct reduction iron (DRI) site at its steel base in Duisburg, provided substantial subsidy commitments by the state of North Rhine-Westphalia and Berlin were fulfilled. Tekin Nasikkol, who heads the works council of Thyssenkrupp Steel Europe, told Reuters last week that Berlin needed to quickly approve hundreds of millions in subsidies for the site, adding workers' patience had run out. ($1 = 0.9084 euros)Reporting by Tom Kaeckenhoff; Additional reporting by Christoph Steitz and Christian Kraemer; Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

☆ Subsidy cuts could derail Thyssenkrupp's green steel project -labour bosses
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

DUESSELDORF, May 17 (Reuters) - Thyssenkrupp's <TKAG.DE> labour bosses cranked up the pressure on Berlin to help fund a 2 billion euro ($2.2 billion) green steel production site, warning in a letter to Economy Minister Robert Habeck that a further cut could choke off the project. Reducing subsidies further would trigger a "massive discussion" within Thyssenkrupp's supervisory board over whether to pull the plug on the investment, the letter, dated May 17 and co-signed by the group's deputy chairman Juergen Kerner, said. Thyssenkrupp in August made the investment decision for the so-called direct reduction iron (DRI) site at its steel base in Duisburg, provided substantial subsidy commitments by the state of North Rhine-Westphalia and Berlin are being paid. Thyssenkrupp <TKAG.DE> and the economy ministry had no immediate comment. ($1 = 0.9084 euros)Reporting by Tom Kaeckenhoff; Additional reporting by Christoph Steitz and Christian Kraemer; Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Tom KaeckenhoffLEVERKUSEN, Germany, April 5 (Reuters) - Incoming Bayer (BAYGn.DE) chief executive Bill Anderson says he is keeping an open mind on whether to break up the company into smaller pieces, as some fidgety investors want. "That's why I said I am going to have an open mind," he said. On the stock market Bayer, once the most valuable company on Germany's DAX blue-chip index, is now worth only about the same as it paid for Monsanto. At Bayer, he said he did not have his own desk and made use of the company's meeting rooms as needed. Professing a love of American football, hiking and snowboarding, he was also effusive about Bayer as a company and its heritage of medicines such as Aspirin.

Concerns of an impending recession in the U.S., coupled with the war in Ukraine, have caused prices for steel to fall and customers to empty their inventories. That has impacted Thyssenkrupp's materials trading division, where profits tanked by 91%. "There is limited visibility in respect of future economic developments," Chief Financial Officer Klaus Keysberg said in a statement. Adjusted earnings before interest and tax, or EBIT, came in at 254 million euros ($272 million) in the October-December period, while sales remained stable at 9.02 billion euros, the company said. ($1 = 0.9328 euros)Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Sandra Maler, Miranda Murray and Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

[1/2] The main deck of the Floating Storage and Regasification Unit (FSRU) "Neptune" is seen during the official commissioning of the liquefied natural gas (LNG) terminal "Deutsche Ostsee" at the harbour in Lubmin, Germany, January 14, 2023. John Macdougall/Pool via REUTERSLONDON/FRANKFURT, Feb 9 (Reuters) - Germany and Oman are in advanced talks to sign a long-term deal for liquefied natural gas (LNG) lasting at least 10 years as Berlin continues its search for alternatives to Russian fuel supplies, three sources familiar with the matter said. Europe has been scrambling to replace Russian gas since last year against a backdrop of war in Ukraine, with state-run Gazprom (GAZP.MM) progressively reducing and then suspending the lion's share of pipeline supplies to Europe. Germany has been holding talks for months with the world's biggest LNG producer Qatar for additional supplies, but negotiations have been lengthy. While supply deals with Qatar would be positive for Germany, they would not offer an immediate solution to Berlin's energy crisis.

The company, which nearly collapsed after Moscow cut and then stopped gas supplies to Germany, now sees a net loss of 19.1 billion euros ($21 billion) for 2022, it said on Wednesday. It said on Wednesday that losses caused by costs to replace Russian gas volumes reached 13.2 billion euros in 2022. "The development of the gas price has a major impact on Uniper's losses for realized and future gas replacement procurement. She said the significant decrease in gas prices at the end of 2022 meant expected losses for future gas replacement costs were reduced to 5.9 billion euros from 30 billion euros. "The actual losses and anticipation of losses from gas replacement cost in the future will continue to significantly fluctuate with changing gas prices," Uniper said.

"We have the ambition to become a profitable company in 2023," Laege said, adding the group had also secured long-term regasification capacity at the planned Hanseatic Energy Hub terminal in Stade, Germany. Laege said that Sefe, formerly called Gazprom Germania, was successful in sourcing LNG mainly from the United States, both short-term deals and for longer periods. The company, whose name is short for Securing Energy for Europe, had already unloaded a first cargo at Dunkirk, he said. However, next winter and beyond could be tight again if cold periods and a fast recovery of Asian LNG demand coincide. Reporting by Vera Eckert, Christoph Steitz, Tom Kaeckenhoff, editing by Kirsti Knolle and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

☆ Siemens Energy signs agreement to develop Iraq's power grid
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +1 min

Companies Siemens Energy AG FollowBERLIN, Jan 13 (Reuters) - Siemens Energy (ENR1n.DE) plans to boost its cooperation with Iraq in the coming years, the company said on Friday, as its CEO inked a deal with the Iraqi government to develop the country's power network. Siemens Energy CEO Christian Bruch signed a memorandum of understanding with Iraqi Electricity Minister Ziyad Ali to provide an additional 11 gigawatts for local power production, a statement from the German Economy Ministry said. "Siemens Energy will play a key role in in this development," Habeck added. The planned projects include constructing and developing power generation facilities for both conventional and renewable energy sources, the ministry statement said. Electrification of large parts of an entire country is therefore one of the most important tasks of our business," Siemens Energy CEO Christian Bruch said in a statement to Reuters ahead of the meeting.

☆ Uniper CEO to resign due to government takeover
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Jan 10 (Reuters) - Uniper (UN01.DE) Chief Executive Klaus-Dieter Maubach plans to resign this year due to the nationalisation of the embattled utility by the German government, the firm said in a statement on Tuesday. They will both continue performing their duties until suitable replacements have been appointed, it said, adding that the supervisory board has already begun the succession process. Tuesday's announcement hardly comes as a surprise, following the reshuffling of the supervisory board last year with the departure of representatives from former majority shareholder Fortum. "The Uniper Supervisory Board is already working full steam to put the new Management Board team in place, and we are very confident we will be able to announce more about the replacements soon," said supervisory board chairman Tom Blades. The Berlin government in December completed a 34.5 billion euro ($36.55 billion) bailout of Uniper, following European Commission approval, a nationalisation made necessary because of Uniper's exposure to surging gas prices following Russia's invasion of Ukraine.

Russia's Gazprom (GAZP.MM) was once Uniper's biggest supplier of gas, but a big drop in deliveries after Moscow's invasion of Ukraine forced the German gas importer to buy gas elsewhere at much higher prices to honour its contracts. Uniper's investors voted in favour of the two main measures at Monday's meeting, an 8 billion euro capital injection by the German state and allowing a further injection of up to 25 billion euros by Berlin. Maubach said Uniper currently had access to around 2.5 billion euros of funds. As part of the bailout, the German government will end up owning just below 99% of Uniper, Germany's largest gas trader, following two share issues. The loss of Russian gas, Moscow's retaliation for Western sanctions over its invasion of Ukraine, triggered a 40 billion euro net loss for the importer, which provides around a third of Germany's gas, the largest loss in German corporate history.

But a new U.S. law offering hefty subsidies to local manufacturers of green technology has given the company pause for thought. That is roughly four times what the German government is offering, he said, with cheaper energy prices in the United States on top. The act introduces tax credits related to investment in green technology, plus tax breaks for consumers buying an electric vehicle or other green product made in North America. German carmakers and suppliers, for which the United States is a main export market, are among its biggest victims. "If we don't do anything, a lot will emerge in the United States," said Siemens Energy (ENR1n.DE) Chief Executive Christian Bruch.

The dividend proposal of 0.15 euros is on par with the company's last shareholder payout for the 2017/18 fiscal year, but lower than an estimate of 0.19 euros on Refinitiv. The submarines-to-car-parts firm still gave a muted outlook for the current fiscal year ending in September 2023, saying it expected sales and profits to fall as prices drop again. Thyssenkrupp shares were indicated to open flat in pre-market trade, with one trader saying the outlook was "too cautious for shares to open higher". Refinitiv estimates show 2023 sales are expected to decline by 11% to 36.5 billion euros. Thyssenkrupp said that, apart from falling prices, higher energy costs were also a key driver of the expected decline.

Apart from generating and selling electricity, RWE also operates a large desk that trades in electricity, gas and CO2 certificates as well as other commodities, which can lead to bumper profits in times of significant price swings. "We have a very fundamental understanding of how markets work," Chief Financial Officer Michael Mueller told reporters on Thursday. Stifel Research, keeping a "buy" rating on RWE shares, said trading results were driven by so-called contango, where the futures price of a commodity is higher than spot levels. Nine-month adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 4.1 billion euros ($4.1 billion), up from 2.4 billion a year earlier. Apart from the strong performance in trading, where profits were up 59%, results also benefited from higher electricity wholesale prices for gas and biomass, Mueller said.

[1/2] Logo of Uniper is pictured at the company's headquarters in Duesseldorf, Germany, September 21, 2022. REUTERS/Wolfgang RattayFRANKFURT/DUESSELDORF, Nov 3 (Reuters) - Soon-to-be-nationalised gas importer Uniper (UN01.DE) unveiled a record 40 billion euro ($39.3 billion) net loss, among the biggest in German corporate history, reflecting expected future losses in the wake of Russia's move to stop supplies. Uniper said the net loss factored in 10 billion euros of realised losses the company incurred by replacing Russian gas volumes on the spot market at much higher prices as well as 31 billion euros of future losses related to this problem. "We are also working intensively to restructure our gas portfolio in order to minimise risks and to end by 2024 the losses resulting from suspended Russian gas deliveries," Tuomela said. Among the group's top priorities remains the planned exit from the Russian market, where it owns a 83.7% stake in Unipro (UPRO.MM), it said.

☆ Factbox: How is Germany replacing Russian gas?
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, Oct 24 (Reuters) - Germany, Europe's biggest economy and historically a major importer of Russian gas, is scrambling to secure alternative supplies following a plunge in flows from Russia since its invasion of Ukraine. Germany is sourcing more gas from Benelux countries, Norway, and France. IMPORTERS' STRATEGIESStricken importer Uniper (UN01.DE) has said it is sourcing Norwegian, Dutch and Azeri gas via pipelines and using its global role as a trader of liquefied natural gas (LNG) to procure more of the super-cooled gas into north western Europe. LNG TERMINALSIn the absence of LNG reception terminals, Germany is building floating LNG terminals (FSRUs), of which two will be ready at the turn of the year, in Brunsbuettel and Wilhelmshaven. In the long term, fixed onshore terminals will be built with a view to receiving gas, carbon-free hydrogen, and ammonia.

☆ Explainer: How will Germany implement its nuclear power extension?
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +5 min

The operators of the three remaining nuclear power plants are E.ON (Isar 2), RWE (RWEG.DE) (Emsland) and EnBW (EBKG.DE) (Neckarwestheim 2). HOW LONG CAN THE PLANTS RUN WITH EXISTING FUEL RODS? According to industry group Nuclear Technology Germany (KernD), it usually takes around one year until fresh fuel rods are delivered. CAN GERMANY EXTEND NUCLEAR POWER BEYOND APRIL 2023? Politically, extending the lifespan of nuclear power is a red line for the Greens party, which has ruled out buying new fuel rods for longer operation of the country's remaining nuclear power plants.

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