Siemens Energy continues to wrestle with technical and ‘ramp up challenges’ with its Gamesa wind division after posting a €4.6bn full-year net loss – and securing €12bn in credit lines.
The German government will counter-guarantee €7.5bn of the €12bn package of guarantees, with €11bn provided by a consortium of banks, and the remaining €1bn from an additional consortium led by Deutsche Bank. In return, the federal government will receive ‘a standard market payment’ from Siemens Energy.
While profitability was ‘severely impacted’ by the large loss at Siemens Gamesa – where break even is not expected until 2026 – Siemens Energy’s order backlog totals €112bn and revenue rose 9.9%. The Gas Services, Grid Technologies and Transformation of Industry (TI) all ‘exceeded’ guided revenue targets for the fiscal year.
Christian Bruch, President and CEO of Siemens Energy, said, “In a year of unprecedented challenges, Siemens Energy showed that turnarounds are achievable, with the businesses, excluding wind, meeting or exceeding their full-year targets… our strong balance sheet remains a top priority, and Siemens Energy’s vital role in the energy transition will continue to drive our growth and success in the years ahead.”
The company’s challenges including higher interest rates, global supply chain disruptions and the continuation of the war in Ukraine, as well as the technical problems and ramp up challenges at Siemens Gamesa.
Siemens Energy has a wide portfolio of gas turbines capable of burning up to 75% of hydrogen, which are planned to run 100% on hydrogen by 2030. Recently, one of Siemens Energy’s gas turbines operated 100% with renewable hydrogen and completed a successful series of tests that prove the viability of state-of-the-art turbines for a renewable future.
Last week, TI opened its first gigawatt electrolyser factory in Berlin, with an annual production capacity of 1GW, which aims to ramp up to at least 3GW by 2025. With that capacity, around 300,000MT of green hydrogen could be produced yearly.
The Normand’Hy project will be one of the first to be supplied from Siemens Energy’s new electrolyser production facility under the joint venture with Air Liquide. Siemens Energy is working on several other large-scale electrolyser projects, such as in Kassø (Denmark) and FlagshipONE (Sweden), which will provide hydrogen for the synthesis of efuels for shipping.