That STEAG site with its long tradition is therefore a glowing example of the far-reaching transformation of the energy group. While hydrogen production will open a new chapter for the energy sector and industry in Saarland in the middle of the decade, STEAG\u2019s coal story is likely to come to an end next autumn. \u201cBy the end of October 2022 at the latest, there will be only one coal-fired STEAG power plant left on the market in Germany, that being Walsum 10 in Duisburg\/North Rhine-Westphalia. This means that we will complete our own coal phase-out far more quickly than many people thought we would,\u201d says Rumstadt. In this respect, STEAG would not be affected by a possible bringing forward of the coal phase-out to 2030, as is currently being considered by the German government.<\/p>\n
This is because STEAG has successfully participated in several decommissioning auctions since the end of 2020 in accordance with the Coal-fired Power Generation Termination Act (KVBG). The bids were accepted for a total of four of the company\u2019s power plant units. In addition, STEAG is examining technical and commercial options for a fuel switch from hard coal to biomass or natural gas at the last remaining power plant unit, Walsum 10.<\/p>\n
Furthermore, STEAG\u2019s imminent departure from hard coal over and above the power plant closures is also reflected in the sale of the former subsidiary Power Minerals, which specializes in the marketing of power plant by-products. In spring 2021, STEAG sold the previous Group subsidiary to the Czech EPH group. \u201cThat was not only another important step in STEAG\u2019s strategic realignment, but the new owner also offers our former colleagues excellent career prospects,\u201d says Andreas Reichel, STEAG\u2019s Human Resources and Industrial Relations director, expressing his satisfaction. Here, as foremost in the case of the jobs to be lost at the power plant sites in the future, it has been possible to find the best possible solutions for the departing employees by reconciling individual interests in cooperation with the employees\u2019 representatives and the trade union. \u201cSo far, we have been able to avoid redundancies,\u201d Reichel emphasizes.<\/p>\n
This, too, contributes to providing STEAG with new scope for future investments. In addition to the option of switching the type of fuel at the only remaining hard coal unit, Walsum 10, a water electrolysis plant with a capacity of up to 500 MW is also planned at the same site and should make a significant contribution to the decarbonization of Europe\u2019s largest steel site in Duisburg. A few kilometers further east, in Herne, one of the world\u2019s most modern combined cycle gas turbine (CCGT) power plants will come on stream in 2022. \u201cBased on the principle of combined heat and power, this plant will generate not only electricity but also heat and will secure the district heating supply in the central Ruhr region for decades to come,\u201d says Schiele.<\/p>\n
In addition, at the Herne power plant site, the switch from the previous energy source of hard coal to natural gas is also associated with a significant reduction in CO2<\/sub>\u00a0emissions by more than half. \u201cThis reduction in emissions may be even greater in the future because the new CCGT plant is already technically capable of burning a certain proportion of hydrogen,\u201d says Schiele. In the long term, a technical upgrade of the plant is also conceivable, enabling it to operate on hydrogen alone. Furthermore, STEAG is converting the Herne 4 hard coal unit, which will be decommissioned in 2022, into a natural gas-fired boiler that will serve to secure district heating in the future.<\/p>\n All these forward-looking projects contribute to making STEAG economically viable for the future. After all, the future prospects associated with the current projects also played their part in making STEAG able a few weeks ago to arrange follow-up financing with its creditors until the end of 2023 thanks to a clear transformation strategy. \u201cThis provides us with the necessary financial leeway to continue resolutely along the transformation path we have successfully embarked on,\u201d says Ralf Schmitz, Chief Transformation Officer at STEAG and in that function also responsible for the company\u2019s finance division. The complex financing negotiations are also the reason why the 2020 annual financial statement could only be published at the end of Novembver 2021.<\/p>\n The favorable business development in the current year is also reflected in the relevant key figures. STEAG\u2019s equity was kept stable at 478.3\u00a0M\u00a0\u20ac even in the difficult 2020 financial year. Consolidated equity in accordance with IFRS, which was still at a level of minus 108.9\u00a0M\u00a0\u20ac in the 2020 financial year, will be positive again at the end of the 2021 financial year. One-off effects are primarily responsible for this favorable development, but in contrast to 2020, they have had a positive impact in the present financial year. These effects include the contractual agreement with the Austrian energy group EVN on the exit from the operating company of the hard coal fired power plant Walsum 10 and the successful participation in the decommissioning auctions for hard coal fired power plants under the terms of the KVBG. These positive one-off effects made it possible to reduce the STEAG Group\u2019s financial debt by more than 300\u00a0M\u00a0\u20ac, or more than one fifth, by the end of the third quarter of 2021.<\/p>\n The first rapid successes from the strategy adopted are also evident in Group sales. After the first nine months of the current business year, this is 12.9\u2009% up on the previous year at 1.6 bn\u00a0\u20ac. At 137.9\u00a0M\u00a0\u20ac, the STEAG Group\u2019s EBIT in accordance with IFRS is also 7\u2009% up on the same period last year. It is also well above expectations at the beginning of the current business year. In the light of favorable background conditions, the positive earnings development is expected to continue in the fourth quarter of 2021.<\/p>\n
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