Siemens Energy, the spin-off company that makes steam turbines for power stations, has announced that it will no longer take on new contracts to supply coal-fired power plants, making it the latest company to scale back operations related to fossil fuels.
Siemens Energy
Turbine sales to coal-fired power plants account for a percentage of the company's sales in the low single-digits - around €820 million. The company insists that it remains profitable.
Siemens Energy added that it would continue to honour existing contracts and commitments, including placed bids for combined heat and power stations.
The group said it would review the impact of the decision on its employees and sites.
“Accompanying its customers on the path of energy transformation and providing the necessary technologies and solutions – that is the mission of the company,” it said.
“With this step, Siemens Energy continues its transformation towards a more sustainable and growth-oriented portfolio.”
About 30% of the company's sales come from working with fossil fuel power stations, mostly gas, in a sector where it competes with Mitsubishi Heavy Industries and General Electric.
The company recently released its first Q4 results - the first since being spun off from former parent Siemens in September. It showed that EBITA before special items fell 87% to €70 million as a result of impairments and restructuring costs.
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