Siemens Energy debuts in Frankfurt as CEO stresses need for ‘interim solutions’ in the sector

Energy

The logo of Siemens Energy pictured at the Frankfurt Stock Exchange on Monday, 28 September 2020, in Frankfurt, Germany.

Frank Rumpenhorst | picture alliance | Getty Images

The CEO of Siemens Energy outlined a vision for the newly-listed firm’s future on Monday, describing it as a “mirror of today’s energy world” and stressing the importance of adopting interim energy solutions.

Speaking to CNBC’s “Squawk Box Europe,” Christian Bruch set out where the company stood in terms of its current business and emphasized the need for a range of technologies and ideas going forward. 

“Thirty percent of our revenue is actually coming from the wind side, 20% coming from transmission side, and the rest of the business is around gas and … coal as well,” he said.

“Obviously, we are trying to convince customers now of the steps in terms of turnaround, the applications of … energy technologies,” he added.

“At the same time, we also try to push to interim solutions: how can we gradually decarbonize natural gas, how can we inject hydrogen in a gas turbine, how can we combine a turbine with some batteries and renewables.”

Siemens shareholders voted to spin off the industrial giant’s energy business back in July. The standalone firm, known as Siemens Energy, made its debut on the Frankfurt Stock Exchange on Monday, trading at around 21.7 euros ($25.31) per share by midday — reportedly below its issue price. The business employs over 90,000 people and is involved in a range of fields including generation, industrial applications, transmission and renewables.

In his interview on Monday, Bruch went on to explain how he thought interim solutions, over the next few years, would be “decisive to really change the energy world” before noting how it wouldn’t necessarily be a shift brought about by “a flip of the switch.”

“It’s really trying to find interim steps on what we can develop,” he said.

The role of renewables

Bruch also sought to double down on the importance of renewables and a new energy mix for the planet.

“I strongly believe there’s no way back but to a, let’s say, more sustainable energy world,” he said. “The only question … we’re all going to have is, what is the speed … to get there?”

“Every region … I talk to and all the CEOs globally … I speak to (are) looking for ways on how to find this bridge.”

Given that fossil fuels still play a significant role in the planet’s energy mix, this idea of a “bridge” loops back into the need to find something of a middle ground.

“We have to find interim solutions,” Bruch said. “How can I gradually start somewhere and, for example, refurbish the coal-fired power plants … or decarbonize gas.”  

“I strongly believe that we are on this journey and this will not turn around — I think climate change is too dramatic and too critical,” he said, before acknowledging the importance of areas such as Asia, a part of the world where he’s previously described coal as playing “quite a significant role” in electricity generation.

“We have to make sure that … for example (in) Asia we find ways … to bring electricity to the people and this is now the balance we have to find. There is no silver bullet for that and it will be a lot of hard work and a lot of innovation and engineering required.”

Products You May Like

Articles You May Like

Media executives are finally accepting the decline of cable TV as they plot a new path forward
Europe’s wood pellet market is worsening environmental racism in the American South
Intelsat rejects $1.8 billion SES claim for C-band clearing payments
COVID and the US election: will the rise of mail-in voting affect the result?
How Amazon keeps a close eye on employee activism to head off unions

Leave a Reply

Your email address will not be published. Required fields are marked *