Siemens to stop selling turbines for new coal-fired power plant projects.

Siemens Energy, which builds steam turbines for power plants, will no longer take on new business to supply coal-fired powered stations, it said on Tuesday, making it the latest firm to scale back fossil fuel-related operations.

Selling turbines to coal-fired power plants accounts for a low single-digit percentage of the company’s sales, or roughly 820 million euros ($970 million) based on 2020 figures. It has said the business is profitable.

Siemens Energy will still meet existing commitments, including placed bids, and honour service contracts for combined heat and power stations.

Siemens Energy, which owns 67% of wind turbine maker Siemens Gamesa, makes about 30% of its sales by catering to fossil-fuel power stations, mostly gas, where it competes with General Electric and Mitsubishi Heavy Industries.

Fourth-quarter earnings before interest, tax and amortisation (EBITA) before special items fell 87% to 70 million euros ($83 million) due to impairments and restructuring costs.

10 November 2020

IEEFA