{"id":287785,"date":"2023-11-13T12:10:01","date_gmt":"2023-11-13T11:10:01","guid":{"rendered":"https:\/\/climatescience.press\/?p=287785"},"modified":"2023-11-13T12:10:04","modified_gmt":"2023-11-13T11:10:04","slug":"germany-to-bail-out-siemens-struggling-wind-turbine-division","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=287785","title":{"rendered":"Germany To Bail Out Siemens\u2019 Struggling Wind Turbine Division"},"content":{"rendered":"\n
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Siemens Energy, facing significant losses, is in talks for up to 15 billion euros in guarantees, with the German state covering 80% of the initial funding.<\/em><\/strong><\/p>\n\n\n\n

Siemens AG shares have plummeted over 70% since mid-June, with the company abandoning its 2023 profit outlook due to challenges in its wind turbine unit.<\/em><\/strong><\/p>\n\n\n\n

The UK government is set to offer higher subsidies for offshore wind projects, following a previous auction where developers backed out due to low pricing, indicating growing financial strains in the renewable energy sector.<\/em><\/strong><\/p>\n\n\n\n

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From OilPrice.com<\/a><\/em><\/p>\n\n\n\n

By\u00a0ZeroHedge<\/a><\/p>\n\n\n\n

Reuters<\/a>\u00a0reports the German government, Siemens AG, and other parties will provide billions of euros in project-related guarantees to support Siemens AG’s struggling wind turbine division. This financial assistance comes just weeks after the company\u00a0warned<\/a>\u00a0about mounting losses amid a meltdown across wind and solar industries.<\/p>\n\n\n\n

Three people familiar with the talks said that Siemens Energy’s top shareholder, Siemens AG, with a 25.1% stake, is prepared to provide some guarantees. Details are still scant, and nothing has been decided, as an agreement needs to be formally drawn up and supported by all stakeholders.<\/p>\n\n\n\n

Last month, Reuters<\/a> said Siemens Energy was discussing state guarantees with the German government. <\/p>\n\n\n\n

Here’s more on the report:<\/p>\n\n\n\n

As a result, Siemens Energy fears it will struggle to secure guarantees from banks, and has approached the government and Siemens to obtain a guarantee framework, business news weekly WirtschaftsWoche said.<\/em><\/p>\n\n\n\n

The weekly, which first reported the talks along with Spiegel magazine, said Siemens Energy is seeking up to 15 billion euros in guarantees.<\/em><\/p>\n\n\n\n

The German state would assume liability for 80% of an initial 10 billion euro funding tranche, while banks would be liable for the remaining 20%, WirtschaftsWoche said.<\/em><\/p>\n\n\n\n

A <\/em>Siemens AG spokesperson said the company remained in “very constructive talks to define the best possible solution in the interests of all parties involved.”<\/p>\n\n\n\n

Siemens Energy shares in Germany have crashed more than 70% since mid-June as it has abandoned its 2023 profit outlook after a review of its wind turbine unit revealed a billion euro problem. Shares were up 5% on Reuters’ report today.\u00a0<\/em><\/strong><\/p>\n\n\n

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Meanwhile, a financial crisis continues to accelerate across the wind industry, with the world’s largest offshore wind farm developer<\/a>, \u00d8rsted, pulling out of major US projects due to soaring inflation costs and a high-rate environment. And the renewable energy meltdown<\/a> in wind has spread to solar as several solar power company stocks crashed on sliding demand. <\/p>\n\n\n\n

And so, hot on the heels of Germany’s bailout of Siemens, Bloomberg <\/a>reports that the UK government is preparing to offer significantly higher subsidies for new offshore wind farms to get the country\u2019s clean-power strategy back on track after developers shunned a previous auction, <\/strong>because the price was too low for offshore wind to be viable.<\/p>\n\n\n\n

Denmark\u2019s Orsted A\/S<\/a>, the world\u2019s largest offshore wind builder, will decide by December whether to proceed with a UK development, while Sweden\u2019s Vattenfall AB<\/a> shelved a giant project<\/a> off the English coast earlier this year in response to soaring costs<\/a>.<\/p>\n\n\n\n

While higher subsidies in the next auction round, known as AR6, may well reinvigorate offshore wind development, it\u00a0will likely feed through to increased electricity costs for consumers<\/strong>\u00a0still burdened with sky-high bills in the wake of last year\u2019s energy crisis.<\/p>\n\n\n\n

The energy transition to renewables across the Western world is cracking. Remember, the Biden Administration’s Inflation Reduction Act was all about ‘sustainable’ wind power… Time for another bailout?\u00a0<\/em><\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Siemens Energy, facing significant losses, is in talks for up to 15 billion euros in guarantees, with the German state covering 80% of the initial funding. Siemens AG shares have plummeted over 70% since mid-June, with the company abandoning its 2023 profit outlook due to challenges in its wind turbine unit. The UK government is […]<\/p>\n","protected":false},"author":121246920,"featured_media":287794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Siemens Energy, facing significant losses, is in talks for up to 15 billion euros in guarantees, with the German state covering 80% of the initial funding.\nSiemens AG shares have plummeted over 70% since mid-June, with the company abandoning its 2023 pro","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691822437,691819371,691818197,691824570,691824569,691820489,691824571,691818322],"class_list":{"0":"post-287785","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-orsted-2","9":"tag-financial-crisis","10":"tag-german-government","11":"tag-higher-subsidies","12":"tag-siemens-ag","13":"tag-siemens-energy","14":"tag-vattenfall-ab","15":"tag-wind-turbines","17":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-369.png?fit=1024%2C1024&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1cRH","jetpack-related-posts":[{"id":333274,"url":"https:\/\/climatescience.press\/?p=333274","url_meta":{"origin":287785,"position":0},"title":"Siemens Sinks: Germany\u2019s Top Wind Turbine Maker Sacks 4,100 Workers\u00a0Overnight","author":"uwe.roland.gross","date":"19\/06\/2024","format":false,"excerpt":"Remember how the wind and solar industries would create hundreds of thousands of highly-paid groovy \u2018green\u2019 jobs? No? Well, as it turns out, the few (highly subsidised) jobs created are disappearing like the sun over the horizon. Although, for the axed workers, there will be no reappearance the following day.\u2026","rel":"","context":"In \"Chief Executive Jochen Eickholt\"","block_context":{"text":"Chief Executive Jochen Eickholt","link":"https:\/\/climatescience.press\/?tag=chief-executive-jochen-eickholt"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/image-389.png?fit=1200%2C599&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/image-389.png?fit=1200%2C599&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/image-389.png?fit=1200%2C599&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/image-389.png?fit=1200%2C599&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/image-389.png?fit=1200%2C599&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":232792,"url":"https:\/\/climatescience.press\/?p=232792","url_meta":{"origin":287785,"position":1},"title":"Biggest Losers: Thousands Sacked As Germany\u2019s Wind Turbine Makers Face Financial Doom","author":"uwe.roland.gross","date":"07\/12\/2022","format":false,"excerpt":"Cut the subsidies to wind power and turbine makers soon fold.\u00a0Siemens Gamesa has\u00a0been axing hundreds of jobs in Europe and America\u00a0as the wheels come off the renewable energy gravy train.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/12\/0594082ae47246.webp?fit=1120%2C630&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/12\/0594082ae47246.webp?fit=1120%2C630&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/12\/0594082ae47246.webp?fit=1120%2C630&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/12\/0594082ae47246.webp?fit=1120%2C630&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/12\/0594082ae47246.webp?fit=1120%2C630&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":285565,"url":"https:\/\/climatescience.press\/?p=285565","url_meta":{"origin":287785,"position":2},"title":"Wind-power Investors abandon Siemens Energy \u2014 another shocking 37% fall, and it\u2019s not alone","author":"uwe.roland.gross","date":"29\/10\/2023","format":false,"excerpt":"Shares of Siemens Energy crashed 37% in Germany.\u00a0The German company said, \"The Executive Board is evaluating various measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government. From JoNova By Jo Nova Marketing fantasies from the\u2026","rel":"","context":"In \"\u00d8rsted\"","block_context":{"text":"\u00d8rsted","link":"https:\/\/climatescience.press\/?tag=orsted-2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0image-siemens-gamesa-113028.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0image-siemens-gamesa-113028.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0image-siemens-gamesa-113028.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0image-siemens-gamesa-113028.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0image-siemens-gamesa-113028.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":267610,"url":"https:\/\/climatescience.press\/?p=267610","url_meta":{"origin":287785,"position":3},"title":"Crash Test Dummies: Wind Turbine Maker Siemens Suffers Massive Share Price\u00a0Slump","author":"uwe.roland.gross","date":"15\/07\/2023","format":false,"excerpt":"The world\u2019s wind turbine makers are bleeding cash; none of them are capable of turning a profit and all of them are facing financial ruin.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/0Screenshot-2020-12-23-at-1.46.47-AM-1536x895-1.png?fit=1200%2C699&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/0Screenshot-2020-12-23-at-1.46.47-AM-1536x895-1.png?fit=1200%2C699&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/0Screenshot-2020-12-23-at-1.46.47-AM-1536x895-1.png?fit=1200%2C699&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/0Screenshot-2020-12-23-at-1.46.47-AM-1536x895-1.png?fit=1200%2C699&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/07\/0Screenshot-2020-12-23-at-1.46.47-AM-1536x895-1.png?fit=1200%2C699&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":287799,"url":"https:\/\/climatescience.press\/?p=287799","url_meta":{"origin":287785,"position":4},"title":"Siemens Cancel Virginia Wind Blade\u00a0Factory","author":"uwe.roland.gross","date":"13\/11\/2023","format":false,"excerpt":"'Development milestones could not be met,' company says. Siemens-Gamesa-to-Double-Hull-Blade-Facility BY\u00a0KATE ANDREWS\u00a0\/\u00a0ROBYN SIDERSKY Amid failing turbine components and financial challenges, Siemens Gamesa Renewable Energy said Friday it has \u201cdiscontinued\u201d its plans to build\u00a0the nation\u2019s first offshore wind-turbine blade manufacturing facility\u00a0at the Port of Virginia\u2019s Portsmouth Marine Terminal. \u201cSiemens Gamesa will continue\u2026","rel":"","context":"In \"$200 million project\"","block_context":{"text":"$200 million project","link":"https:\/\/climatescience.press\/?tag=200-million-project"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":202386,"url":"https:\/\/climatescience.press\/?p=202386","url_meta":{"origin":287785,"position":5},"title":"Subsidy Cuts Mean Wind Turbine Makers Face Miserable & Uncertain Future","author":"uwe.roland.gross","date":"01\/06\/2022","format":false,"excerpt":"The wind industry was built on lies and runs on subsidies; cut the subsidies and the whole thing collapses in a heartbeat. Wind turbine makers like Germany\u2019s Siemens are having a rather miserable time of it, of late. Subsidies were already being wound back across Europe (and with it demand\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/06\/0img_20210721_070833.jpg?fit=1024%2C682&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/287785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=287785"}],"version-history":[{"count":9,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/287785\/revisions"}],"predecessor-version":[{"id":287798,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/287785\/revisions\/287798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/287794"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=287785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=287785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=287785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}