BMW exploring energy investments to reduce dependence on natural gas
- Wall Street ends first day of third quarter with solid rebound
- Tesla (TSLA) Delivered 254,695 EV Units in Q2, Below Consensus
- Goldman Sachs Warns Clients of More Equity Market Losses in Second Half of 2022
- Kohl's (KSS) Falls 15% After Ending Sale Talks With Franchise Group and Issuing Q2 Warning
- General Motors Warns It Has 95k Vehicles in Inventory Without Certain Components
FILE PHOTO: The BMW logo is seen during the 2016 New York International Auto Show in Manhattan, New York, March 24, 2016. REUTERS/Eduardo Munoz/File Photo
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
By Victoria Waldersee
BERLIN (Reuters) - BMW is exploring new investments in solar, geothermal and hydrogen energy to lower its dependence on natural gas, the carmaker's production chief told Reuters on Monday, warning an embargo on Russian gas would bring the industry to a standstill.
The carmaker, which relied on natural gas for 54% of its energy consumption in 2021, is examining where it can add solar panels to its plants and developing plans with local authorities to transport hydrogen to its plant in Leipzig, Germany.
"Hydrogen is very well-suited to lower or even fully compensate for gas demand," Milan Nedeljkovic said.
"Our industry accounts for around 37% of German natural gas consumption," he said when asked what would happen to BMW's plants in the event of a halt to gas deliveries from Russia. "Not just BMW but the entire sector would come to a standstill."
BMW's plans reflect wider preparations underway across German industry to shift away from Russian gas and come up with a system to ration available supplies in the event of a sudden halt to deliveries.
Beyond Germany, a new plant in Debrecen, Hungary, which BMW has said will be the world's first auto factory to run entirely without fossil fuels, will rely heavily on solar, Nedelkjovic said, adding that the carmaker was also looking into using geothermal energy.
Geothermal power is more stable than weather-dependent renewables but has not seen growth or investment comparable to wind or solar partly due to high upfront costs and complex licensing processes for drilling.
Asked about the potential of nuclear energy, which accounts for around half of Hungary's energy supply but is being phased out in Germany, Nedeljkovic said: "Nuclear energy can be a stabilising factor, particularly in these volatile times. For our own production we rely on regenerative energy sources."
(Reporting by Victoria Waldersee; editing by Jason Neely)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Four critically wounded, three killed in Danish mall shooting on Sunday, police says
- France's Macron to appoint former health minister as spokesman - BFM TV
- Digital banking start-up YAP raises $41 million, to expand into Saudi Arabia
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!