The German government has nationalised Uniper, the energy company behind some key UK power generating assets.
Almost £7 billion has been pledged in capital as it takes a 99 per cent stake in the company, described as having a system-critical role in the country’s energy supply. With much of Europe dependent on Russia for gas supply, it has been exposed to the deteriorating situation that has arisen following the invasion of Ukraine.
The government has acquired the shares held by Fortum, a Finnish state-owned energy company.
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State-owned bank KfW has provided the finance. The company said any additional financing need will depend on when the payment of a gas surcharge is made to Uniper, which is intended to cover costs for the replacement procurement of gas. It will also monitor how Uniper's margining situation develops given the volatility in the commodity markets.
Uniper chief executive Klaus-Dieter Maubach said: "Today's agreement provides clarity on the ownership structure, allows us to continue our business and to fulfil our role as a system-critical energy supplier. This secures the energy supply for companies, municipal utilities, and consumers.
“At Uniper, we are aware of our responsibility for Germany and Europe. We are committed to doing our part to overcome this crisis and to restructure the energy supply in this country."
A spokesperson said there are no disposal plans for assets in the UK, with an additional component of the agreement being a right of first offer to Fortum if Uniper decides to sell a Swedish hydro or nuclear business - or parts - before the end of 2026. The company said it “currently has no intention to sell those businesses”. An extraordinary meeting is to be held to obtain shareholder approval for the stabilisation measures.
Headquartered in Düsseldorf, Uniper owns two 1.3GW gas-fired power stations at Isle of Grain, Kent and Connah’s Quay, Flintshire; a 600MW site at Killingholme, North Lincolnshire, as well as a high pressure gas pipeline there, and smaller gas-fired operations in Enfield and Willesden in London and Cottam, Nottinghamshire.
Also in Nottinghamshire, at Ratcliffe-on-Soar, it owns a coal-fired power station, scheduled to close in 2024. Plans for an earlier phased decommission have been put on hold due to the energy crisis, following Treasury talks, also agreed with Drax in North Yorkshire.
Uniper has plans for green and blue hydrogen production in the Humber, too., with one a 720MW proposal with Shell. A spokesperson did not immediately advise on how they will progress.
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