Scholz expects a good solution for talks with Siemens Energy

By Andrea Thomas

BERLIN (Dow Jones)–Chancellor Olaf Scholz (SPD) has promised a good solution to the current talks about state guarantees between the energy company Siemens Energy and the federal government. At the opening of a so-called Gigafactory by Siemens Energy and the French gas company Air Liquide in Berlin, Scholz praised the positive prospects for Siemens Energy and emphasized that money can be made with energy production. Electrolysis modules are to be produced on an industrial scale at the location in Berlin. Siemens Energy is currently negotiating with the federal government about possible guarantees worth billions to support the energy company’s growth.

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“It is not least this positive outlook that has convinced the federal government that Siemens Energy has excellent growth prospects,” said Scholz, according to the speech manuscript for the opening event distributed in advance by the Federal Press Office. The federal government is currently in very constructive and very goal-oriented discussions about what a necessary security package for an impressive order volume could look like. A banking consortium and the Siemens group are intensively involved in these discussions, said the Chancellor.

Scholz made it clear that the former parent company Siemens was also in demand. It currently still holds 25.1 percent of the shares in Siemens Energy. “I expect everyone involved to do their part now,” he said, according to the text of the speech. “I am confident that we will come to a good solution very soon if everyone now lives up to their responsibilities.”

Gigafactory milestone for competitiveness

Scholz praised the Gigafactory electrolysis as an “impressive milestone for Europe’s competitiveness” given the central role that hydrogen will play in the global energy transition. “Because there will be areas in industry and in parts of the transport sector that cannot be electrified or cannot be electrified efficiently. We will need hydrogen there,” he said according to the speech manuscript. The federal government recently doubled the target of its national hydrogen strategy. 10 gigawatts of domestic electrolysis capacity are to be built up by 2030. “Today strengthens my belief that we can do this together,” said Scholz.

According to Scholz, Germany is in the final stages of planning a hydrogen core network. This is predominantly privately financed, accompanied by a good public framework. “One difficulty here is of course that the investment costs will initially be high, but the income in the ramp-up phase will still be comparatively low,” said Scholz. But last week, after intensive discussions, a good solution was found as to how this could be balanced out in the medium term and how investments could be made attractive.

He also made it clear that there is money to be made from energy production and everything that is needed for it, even in the climate-neutral future. Therefore, pessimism about Germany’s future is not appropriate. “The Cassandra calls about the supposed deindustrialization of Germany and Europe are misleading,” said Scholz.

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(END) Dow Jones Newswires

November 08, 2023 08:23 ET (13:23 GMT)

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