Vattenfall reviews the option to divest its Berlin Heat business

Vattenfall reviews the option to divest its Berlin Heat business

(PRESS RELEASE) STOCKHOLM, 4-May-2022 — /EuropaWire/ — Vattenfall, a Swedish Government-owned multinational power company, has announced the company is undergoing a strategic review on how the company can best contribute to the energy transition and will investigate whether it should continue owning its Berlin Heat business or divest it in its entirety. In addition, Senior Vice President and Head of Business Area Heat Ulrika Jardfelt will leave her position.

Anna Borg, President and CEO of Vattenfall, says:

“Vattenfall is fully committed to the energy transition, and we have an extensive plan to phase out the remaining fossil fuels in our operations, in line with the 1.5-degree Celsius scenario of the Paris agreement. When we now initiate this review, there are good arguments for both the keep and the sell options.

• In the case of us keeping the ownership, we will through substantial CO2 emission reductions contribute both to the climate goals of the City of Berlin and to our own goal of fossil free living within one generation. Our decarbonization plan for Heat Berlin is solid, creates value and future proofs the business.

• In the case of a divestment, we find a trusted future owner for the Heat Berlin operations who can continue the transformation of the business while we at Vattenfall free up financial resources and management capacity to focus on other parts of our portfolio to enable fossil free living within one generation.”

Anna Borg continues:   

“In both scenarios, Germany remains a key market for Vattenfall. Besides heat we have almost 4.5 million customers, trading operations and significant renewables business such as wind, solar and pumped storage hydro power. We are determined to continue to play an important role in the German energy transition.”

In connection with the strategic review, changes are being made in the Group Executive Management and Head of Business Area Heat, Ulrika Jardfelt, will leave Vattenfall.

“Ulrika Jardfelt has been instrumental in developing our heat operations and decarbonisation plans. We have however now agreed that as we launch this strategic review and enter a new phase for Business Area Heat, Ulrika will leave Vattenfall since we do not fully share the same view about the next steps in this phase. I thank Ulrika for her many contributions and wish her all the best in her coming endeavours”, says Anna Borg.

Martijn Hagens, Senior Vice President and Head of Business Area Customers & Solutions at Vattenfall, will be double-hatted and step in as interim Head of Business Area Heat as of today.

Background:

Vattenfall’s heat business in Berlin employs about 1,700 people and supplies hot water and warm heating to about 1.3 million residential units. It owns and operates 10 heat and CHP plants as well as 80 small-scale CHPs and various other assets. The heat grid has a total length of approx. 2,000 km.

For further information, please contact:

Vattenfall’s Press Office, telephone: +46 (0)8 739 50 10, email:press@vattenfall.com

SOURCE: Vattenfall AB