Uniper halts modernization for green energy production - Uniper Reducing Pace in Transition to Renewable Energy
Uniper's €5 Billion Green Transformation Plan
Uniper, one of Europe's largest energy companies, is set to invest €5 billion by 2030 in a significant shift towards green power generation. The company, which operates mainly in Germany, the UK, and Sweden, aims to increase its total power generation capacity to 15-20 gigawatts (GW) by 2030, with at least half coming from renewable, low-carbon, or decarbonizable sources.
Uniper's renewable energy ambitions extend across several European countries. The company plans to develop up to 10 GW of renewable energy capacity by 2030, including wind farms in Scotland and solar projects in Tamworth and Totmonslow in the UK, as well as projects in Germany, France, Italy, Sweden, Hungary, and Poland.
Hydrogen is a key component of Uniper's green transformation. The company aims to achieve 1 GW of electrolyzer capacity by 2030, with flagship projects like the €1.5 billion Wilhelmshaven hydrogen hub in Germany. This hub is expected to supply around 15% of Germany's hydrogen demand and will play a crucial role in decarbonizing sectors heavily reliant on fossil fuels and enabling flexible, clean power balancing for intermittent renewables.
Despite this focus on renewables and hydrogen, Uniper also recognises the strategic role of gas as a flexible, transitional energy source during the shift to green energy. The company plans to continue investing in gas-fired plants that will eventually operate carbon-neutrally, using green hydrogen or carbon capture technologies. Uniper is also expanding its gas supply portfolio, targeting 250–300 TWh/year in the medium term and securing long-term LNG supply contracts to serve European markets.
In line with EU decarbonization policies, Uniper is accelerating the coal phase-out, targeting full coal plant closure by 2029, eight years earlier than planned. The proceeds from the closure will be reinvested into renewables and hydrogen projects, marking a significant shift in their energy mix towards near carbon-neutral generation capacity, aiming for 80% carbon neutrality in generation by 2030.
This strategy aligns with both energy security and the challenge of intermittent renewable generation. Uniper, the largest German gas importer, faced financial difficulties in 2022 due to Russia stopping gas supplies after the Ukraine attack. The company welcomes the German government's plan to build new gas power plants, but the delay in tendering and construction is shifting potential revenues to later years.
Germany must reduce its Uniper stake by the end of 2028, limiting its ownership to a maximum of 25 percent plus one share. Despite this, Uniper plans to participate in the planned German government tender for new gas power plants.
In the UK, Uniper plans to build two new gas power plants, Connah's Quay and Killingholme, with CO2 capture and storage capabilities. This move reflects Uniper's commitment to a low-carbon future, even as it continues to invest in and operate gas power plants.
In summary, Uniper's €5 billion green transformation plan aims to increase its total power generation capacity to 15-20 GW by 2030, with at least half coming from renewable, low-carbon, or decarbonizable sources. The company is focusing on renewable energy, hydrogen, and gas power, while accelerating the coal phase-out and aligning with EU decarbonization policies.
- Uniper's employment policy should emphasize the recruitment and training of experts in environmental-science and technology, as these fields are crucial for the successful implementation of their €5 Billion Green Transformation Plan, which includes renewable energy projects and hydrogen production.
- As part of Uniper's community policy, they should collaborate with local scientific institutions to research and develop new methods for carbon capture, storage, and overall decarbonization of their gas-fired power plants, aligning with the company's commitment to a low-carbon future.
