Arab Today, arab today swedens vattenfall to sell german coal business
Last Updated : GMT 16:10:08
Arab Today, arab today
Arab Today, arab today

Sweden's Vattenfall to sell German coal business

Arab Today, arab today

Arab Today, arab today Sweden's Vattenfall to sell German coal business

Vattenfall is the third-largest energy supplier in Germany
Frankfurt - AFP

Swedish state-owned energy giant Vattenfall said Monday it has reached a deal to sell its German coal operations, employing 8,000 people, as it moves away from activities blamed for climate change.

Vattenfall said it would sell its German lignite, or brown coal, business -- open cast coal mines and two power plants close to  the German-Polish border -- to Czech operator EPH.

The coal operations represent about one-tenth of Vattenfall's power production in Germany, where it is the third-largest energy supplier.

"This divestment of our lignite assets is good strategically but also financially given current and expected market conditions," said Vattenfall chief executive Magnus Hall.

"We are now accelerating our shift towards a more sustainable production. The sale means more than 75 percent of our production will be climate neutral compared to about 50 percent today," Hall said.

Vattenfall said the sale of the coal business would have a negative impact of 22-27 billion Swedish kronor (2.4-2.9 billion euros/$2.7-3.3 billion) on its second-quarter results, but the hit would have been larger if it had waited longer.

The sale of the coal assets drew few bidders.

Another Czech company, CEZ, withdrew afer expressing initial interest.

Greenpeace, too, had tried to bid for the coal operations with the intention of closing them down. But the environmental group said in November it had been barred from bidding because Citigroup, in charge of the sale, judged it had no intention of making a financial bid.

There is growing resistance to fossil fuels in Germany, where public subsidies of renewable sources of energy are making coal-fired energy less profitable.

- 'Irresponsible' to sell -

Non-governmental organisations and environmentalist groups criticised the sale.

Jan Kowalzig, climate expert at Oxfam, slammed it as an "irresponsible decision" on the part of Sweden, which should have shut down the operations instead.

The Swedish government, a coalition of environmentalist Greens and Social Democrats, had "betrayed" its international commitments, Kowalzig said, urging Stockholm, which has still to give its green light, to block the deal.

Swedish industry minister Mikael Damberg, for his part, said: "We will examine the transaction... and probably respond within a few months."

EPH, a major player in eastern Europe, already owns another German coal producer, Mibrag.

Annika Jacobson, head of Greenpeace Sweden, described EPH as a "Czech risk capital group who want to relaunch coal in Europe and have plenty of skeletons in their cupboards".

The group's head had been named in the recent Panama Papers tax-evasion scandal, even if the group denied any wrongdoing, Jacobson said.

Vattenfall's plans to sell the operations already raised concerns in Germany since the mines are in the east, where unemployment is higher than in the rest of the country.

Vaattenfall is one of the biggest employers in the region.

The IG BCE labour union for the sector said it expected EPH to draw a "corporate strategy that recognises the importance of the east German brown coal industry for social stability in the region".

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swedens vattenfall to sell german coal business Arab Today, arab today swedens vattenfall to sell german coal business

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swedens vattenfall to sell german coal business Arab Today, arab today swedens vattenfall to sell german coal business

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday