German energy group Uniper SE has announced that it will need more time to meet its target of investing around €8 billion in its green transformation. The company attributes the delay to low customer demand for green hydrogen and a slow-developing regulatory framework. As a result, Uniper now expects to complete its investment plan in the early 2030s instead of by 2030, as originally planned.
Challenges in Green Hydrogen Demand
In its third-quarter financial statement, Uniper noted that there are currently few major customers actively seeking green hydrogen or willing to enter into corresponding supply contracts. This lack of demand has hindered the company’s ability to move forward as quickly as initially anticipated.
Uniper emphasized that it would only proceed with investments that are based on a viable business case, ensuring an appropriate return on investment. This cautious approach underscores the company’s commitment to making financially sound decisions, despite the global push for cleaner energy solutions.
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Regulatory Delays Affect Investment Timeline
Another major factor contributing to the delay is the regulatory framework, which has developed more slowly than expected. Uniper mentioned that consultations related to Germany’s federal government’s power plant strategy have taken longer than anticipated.
As a result, the first auction for green hydrogen projects is now not expected until the first half of 2025, at least a year later than market participants had hoped.
These delays in regulatory processes have complicated Uniper’s green transformation efforts, as the company had been planning to align its investments with an expected timeline for these auctions. Without clear regulations in place, the company’s ability to move forward on large-scale green hydrogen projects remains limited.
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Uniper’s Continued Commitment to Carbon Neutrality
Despite the setbacks, Uniper remains committed to its long-term sustainability goals. The company reiterated its objective of achieving carbon neutrality by 2040. Furthermore, Uniper is still on track to reduce its Scope 1 and Scope 2 emissions by over 55% by 2030 compared to 2019 levels.
These goals reflect the company’s ongoing commitment to transitioning to cleaner energy, even as it adjusts its investment timeline.