15 January 2019

Oil majors in transition: Shell to bid for Dutch Utility Eneco

By |2019-05-20T13:03:29+01:00Tuesday, 15 January 2019|Categories: Netherlands, oil industry, utilities|Tags: , , |0 Comments

Oil & Gas Major Royal Dutch Shell and Dutch pension fund PGGM formed a consortium to take over Dutch utility Eneco.

Eneco

Eneco is owned by 53 Dutch municipalities. In a turbulent political process they have decided to sell the company a few months ago. The company value is estimated in the region of €3bn. 

Total turnover in 2017 was €3.4bn. Although more known for its renewable investments, Eneco still generates half of its power (10.3 TWh p.a. in 2017) by fossil fuels, mainly gas. 

Eneco also has a large trading division focused on gas trading (45.3 TWh) and power trading (21.5 TWh).

Shell

The Dutch/British gas and oil giant recently declared to invest $1-2bn per year in its New Energies division, established in 2016. This corresponds to 4-8% of its total investment of around $25bn. 

Its European peers (in contrast to its US peers) pursue similar strategies: BP, Total, ENI and Equinor have pledged around $0.5 bn per year for renewables. ENI plans to increase renewable investments from 0.5 to 1.2bn over the next years. And Equinor even announced […]

7 January 2019

Utilities in Transition: Vattenfall AB accelerating switch to renewables

By |2019-05-20T13:08:22+01:00Monday, 7 January 2019|Categories: company strategies, utilities|Tags: |0 Comments

Sweden´s Vattenfall AB is accelerating the transition to renewables, as German newspaper F.A.Z. reports.

The large utility, which is 100 percent owned by the Swedish state, plans to quadruple the share of renewables by 2025. This includes the expansion of wind power capacities from 3 GW (end of 2018) to 11 GW (2025). Within “one generation”, the group as well as its customers and suppliers should be “fossil-free”.  Currently, Vattenfall generates about  25 percent of its power from fossil fuels.

In Germany, Vattenfall has abandoned its lignite assets a few years ago and is abandoning its German nuclear assets. In Sweden, however, the company will continue to operate its large nuclear plant Ringhals.

Vattenfall is already one of the largest offshore wind power operators in Europe. Further wind farms are currently being built in the Baltic Sea. To finance these projects, the company intends to make greater use of external sources. Parts of wind farms could also be sold to investors.

Unlike E.ON (Innogy/RWE) or Ørsted, however, the company does not intend […]