The CEO of German auto giant Volkswagen has said the company may still need to keep burning coal to keep its huge manufacturing facility in Wolfsburg running, as a result of continued tensions between Europe and Russia and the impact it has on energy security.
Volkswagen plant in Wolfsburg, Germany. Credit: nitpicker / Shutterstock
Volkswagen plant in Wolfsburg, Germany. Credit: nitpicker / Shutterstock
Speaking to CNBC, VW chief Herbert Diess was quizzed about how concerned he was about having a steady supply of gas from Russia and what it would mean for the company if the flow was stopped.
"That’s actually really a threat … because it’s very hard to predict what’s going to happen," Diess said. "In Wolfsburg, we still have coal-fired power plants which we wanted to, and we are, converting into gas."
Read more: Germany's RWE unveils energy security measures as Ukraine crisis continues
Volkswagen's facility in Wolfsburg covers an enormous 6.5 million square metres (2.5 square miles) and is powered by two cogeneration plants that provide both heat and energy.
The company was planning to replace the coal-fired boilers with gas and steam turbines, but the invasion of Ukraine has led to a rethink for the time being.
"It’s all prepared but now we are a little bit hesitating, and we will look and see how the situation is going to develop," Diess said. "We can [adapt] ... to the situation. We can, [for] a little bit, prolong our coal-fired plants - hopefully, it’s not for too long. Then we would like to change to gas once the supply is secured."
On Wednesday, Diess was quoted by Reuters as telling reporters that the company had "just decided to upgrade our coal-fired power plants to still be able to use coal or gas" at the Wolfsburg plant.
Read more: Volkswagen low-carbon steel deal could make EVs greener
His comments come the day after Brussels unveiled a sixth tranch of sanctions against Russia, including a phasing out of imports of Russian crude oil within six months.
In a speech, European Commission President Ursula von der Leyen said: "Some Member States are strongly dependent on Russian oil. But we simply have to work on it. We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined."
She added that the Commission would ensure an orderly phase-out to minimise the impact on global markets.
"Thus, we maximise pressure on Russia, while at the same time minimising collateral damage to us and our partners around the globe," said von der Leyen.
Read more: “Europe has not been smart”: IE meets Prof. Marco Taisch
Last year, Russia was the EU's biggest supplier of both oil and natural gas, according to Eurostat figures.
In April, Moscow halted supplies to Poland and Bulgaria following their refusal to pay with rubles, in a move that has prompted fears that other countries may be subject to the same.
Back to Homepage
Back to Transportation