Sweden-headed energy utility energy Vattenfall Group has announced that it has initiated a strategic review on how the company can best contribute to the energy transition. In this context, it will investigate whether it should continue owning its Heat Berlin business in Germany or divest the business in its entirety.
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Vattenfall’s heat business in Berlin employs about 1 700 people and supplies hot water and heating to about 1.3 million residential units.
It owns and operates ten heat and combined heat and power (CHP) plants as well as 80 small-scale CHPs and various other assets.
The heat grid has a total length of approximately 2 000 km.
In the case of us keeping the ownership, we will through substantial CO2 emission reductions contribute both to the climate goals of the City of Berlin and to our own goal of fossil-free living within one generation. Our decarbonization plan for Heat Berlin is solid, creates value, and future proof the business, Anna Borg said.
In the case of divestment, we find a trusted future owner for the Heat Berlin operations who can continue the transformation of the business while we at Vattenfall free up financial resources and management capacity to focus on other parts of our portfolio to enable fossil free living within one generation, Anna Borg said.
In both scenarios, Germany remains a key market for Vattenfall. Besides heat, we have almost 4.5 million customers, trading operations, and significant renewables business such as wind, solar, and pumped storage hydropower. We are determined to continue to play an important role in the German energy transition, Anna Borg said.
Group management shift
In connection with the strategic review, changes are being made in the Group Executive Management and Head of Business Area Heat, Ulrika Jardfelt, will leave Vattenfall.
Martijn Hagens, SVP and Head of Business Area Customers and Solutions at Vattenfall, will be double-hatted and step in as interim Head of Business Area Heat effective immediately.
Ulrika Jardfelt has been instrumental in developing our heat operations and decarbonization plans. We have however now agreed that as we launch this strategic review and enter a new phase for Business Area Heat, Ulrika will leave Vattenfall since we do not fully share the same view about the next steps in this phase. I thank Ulrika for her many contributions and wish her all the best in her coming endeavors, said Anna Borg.