RWE CEO: “We are in a great position to actively shape the key decade of the energy transition”
German energy company RWE has committed to investing a staggering $57 billion over the next decade to expand its green generation capacity to 50 GW.
The company says that it will invest $5.7 billion annually in offshore and onshore wind, solar, batteries, “flexible generation” and hydrogen, with a target of expanding its portfolio in the European, North American and Asia-Pacific markets. The objective is to make RWE greener, bigger and more valuable by 2030.
RWE CEO Markus Krebber said: “We are in a great position to actively shape the key decade of the energy transition. With our investment and growth strategy ‘Growing Green’ we are strongly stepping up the pace”.
Previously, RWE aimed to increase its total capacity by an average of 1.5 GW per year, but with its new commitment, it now targets an average 2.5 GW per year. Offshore wind will play a prominent role: By 2030, RWE intends to triple its offshore wind capacity from 2.4 GW to 8 GW, focusing primarily on Europe, North America and Asia, where the company works together with partners. The portfolio will also include green hydrogen, and the company plans to build up 2 GW of electrolyzer capacity by 2030.
Best of all, it aims to turn a profit from these investments. It expects that adjusted EBITDA in its core business will increase by an average of nine percent per year to reach $5.7 billion by the end of the decade. RWE intends to finance the ambitious investment program partly by using the cash from its operating activities.
The company, which generated $15.6 billion of revenue in 2020, said it has plenty of financial headroom to implement the project due to its excellent creditworthiness and low debt level. In the nine-month period to September this year, its net debt stood at $3.1 billion.
“Our new strategy not only paints a clear picture of how our company will develop between now and 2030, it also shows that we are financially strong and will be financing our green growth with green funds,” said Michael Müller, RWE CFO.
Source and photo: Maritime-executive.com