E.ON to Invest E3 Billion in New Renewables Unit By 2010

Aug 1, 2007 - Datamonitor

German utility E.ON has pledged to invest E3 billion in renewable energy projects by 2010, and has also announced that it will establish a new business unit for the specific purpose of expanding the company's renewable energy activities in the coming years.

With the exception of large hydroelectric power, all of E.ON's existing renewable activities will be pooled, as well as international climate protection projects under the flexibility mechanisms of the Kyoto protocol, for example the Clean Development Mechanism.

E.ON said that the mission of the new business is to expand the company's electricity generation from renewable sources both within and beyond its existing markets.

The E3 billion will predominately be invested in offshore wind power as, by 2010, E.ON is planning to increase capacity in wind power by more than 500MW. Further offshore wind power projects are also being planned, including the largest wind farm in the world with around 1,000MW at the Thames estuary in the UK.

By enhancing renewables and developing power plants with lower carbon dioxide emissions, E.ON said that it is growing its electricity business while at the same time complying with more stringent climate protection targets.

Indeed, by 2030, E.ON aims to halve its specific carbon dioxide emissions against the 1990 figure. The company also pledged its support for the EU target of generating at least 20% of primary energy from renewables by 2020.

From October 2007, E.ON's future renewables and climate protection business will be headed by Frank Mastiaux, who is currently responsible for the global liquefied petroleum gas business at BP in London. TOP