Siemens Energy – Still in the valley of tears

Expected (e) wind power additions per year worldwide until 2030 , © Wood Mackenzie, Global Wind Power Market Update: Q4 2021
© Wood Mackenzie, Global Wind Power Market Update: Q4 2021

Siemens subsidiary Gamesa still doesn’t seem to be out of the woods, looking at the strong loss (minus 627 million EUR) that this company contributed to its parent (total minus of 560 million EUR). Onshore wind is considered a problem area combined with miscalculations and supply chain issues. For this reason, there is speculation that this subsidiary will be fully integrated or restructured via a share swap, which could be implemented in, among other things, a realignment or even a split-off. A partial merger with a competitor may also be possible. 

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The Netherlands is tipped to become a hydrogen gateway

 port authority’s plans a new 25-mile hydrogen pipeline, © Rotterdam Hafen
Among the port authority’s plans is a new 25-mile hydrogen pipeline, © Rotterdam Hafen

All eyes will be on Rotterdam in March 2022 when the city will host its first-ever global hydrogen summit and exhibition. The Dutch region, which is home to Europe’s largest port, has its sights set on becoming a hydrogen hub, at least that is the intention set out in the country’s energy strategy. The Dutch government sees the international trade in hydrogen gas as a great opportunity – assuming that a pan-European pipeline project doesn’t get in the way.

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Closer cooperation with Dubai

Despite dubious past experience with the countries of the Middle East and North Africa region, in November 2021 the German government signed a declaration of intent with the United Arab Emirates covering the establishment of an Emirati-German task force for hydrogen and synthetic fuels. The deal was given the seal of approval in Dubai by … Read more

Siemens Energy – still an interesting entry-level stock

Silyzer 200 PEM electrolyzer, © Siemens Energy
Silyzer 200 PEM electrolyzer in Werlte, Germany, © Siemens Energy

If you read about any of the major hydrogen projects underway, you will be unable to avoid Siemens Energy. Orders like the recent ones worth EUR 700 million should be on the agenda. Even the problems with its wind power subsidiary Gamesa seem solvable because – regardless of short-term problems (price increases in raw materials and component shortages) – the market is growing strongly. Here, I would venture to suggest to the company that it integrates wind farms into existing projects and offerings via Power Purchase Agreements, or PPAs, from the outset. Then you would be able to view a wind farm from a different return perspective and margin.

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Siemens Energy – One-Stop-Shopping

Tarragona Chem Complex North, © Siemens Energy
Tarragona Chem Complex North, © Siemens Energy

Siemens Energy CEO Christian Bruch put it clearly in an interview to members of the German Hydrogen and Fuel Cell Association (DWV) a few months ago: The technology group wants to be a global player in the hydrogen sector – starting with electrolysis and ending with the use of hydrogen in various markets. The group is now being expanded in this direction, although in the short term the negative influence of the wind turbine subsidiary Gamesa (67 percent share, approx. 11 billion euros stock market value; that of Siemens Energy is only approx. 9 billion euros for 22 billion euros turnover) had a negative impact on their own balance sheet – a loss of minus 307 million euros.

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