Dusseldorf As the new CEO of the industrial service provider Bilfinger, Thomas Schulz is currently looking forward to growing sales. Because as a service provider for the oil and gas industry, among other things, the once largest construction group in the world is currently benefiting from the fact that numerous customers from the industry want to expand their capacities due to the Ukraine crisis. “Now we are again receiving numerous orders from the oil and gas sector for maintenance and refurbishment,” said Schulz in an interview with the Handelsblatt. The group assumed that the market would develop sideways until February. “We’re investing now,” says Schulz.
However, the 57-year-old is concerned about the energy supply of the German economy, especially during the winter months. The manager has little understanding that the federal government is reluctant to extend the operating times of German nuclear power plants in view of the expected gas shortage. “To date, politicians have not made a decision, but have declared that continued operation of the nuclear power plants is not feasible,” says Schulz. “This adds to the confusion of the public.”
The Bilfinger boss also makes the operators of the nuclear power plants responsible. It is also their task to explain to the population what is technically feasible and what legal requirements are necessary for this. “I also don’t understand why German power plant operators and politicians didn’t immediately work out a requirement profile that clearly defines what the industry needs in concrete terms in order to let the existing nuclear power plants run for half a year or longer,” said the CEO. Abroad, the impression prevails: “The Germans just don’t want that.”
Read the entire interview here:
Mr. Schulz, as an industrial service provider, Bilfinger is also involved in the dismantling of nuclear power plants. How difficult is it to stop dismantling and extend the life of German nuclear power plants?
A distinction must be made between the nuclear power plants that are still connected to the grid and that could continue to operate technically, including in terms of safety. And then there are those systems that have already been shut down and would first have to be reactivated. In the first case, which concerns three German nuclear power plants, it would be relatively easy to keep them running for another year or two. It is essentially a political decision and the approval process that could quickly simplify politics. By extending the running times, we are offering more energy again, instead of reducing the energy we produce ourselves. And that would help reduce energy costs. This positive effect, in turn, would make German industry more competitive again and relieve private households. And as a further special effect, it can be assumed that inflation could weaken.
Top jobs of the day
Find the best jobs now and
be notified by email.
And what about the others who have already switched off?
This in turn is a technical question that the operators must first answer. At Bilfinger, we are the project company that either dismantles power plants or sets up new plants on behalf of operators. In our experience, power plants that have been off the grid for a longer period of time would require greater technical effort to start them up again. In addition, in many cases the employees are no longer available to look after these systems. The important question is whether the existing test protocols can be continued. If this is not possible, the effort involved in restarting the system is of course considerable. There is also a tipping point where it is no longer worthwhile.
But not only politicians are reluctant, but also the energy suppliers themselves, who have more or less ruled out continued operation.
I also don’t understand why German power plant operators and politicians didn’t immediately work out a requirements profile. That would clearly define what the industry specifically needs to run the existing nuclear power plants for half a year or longer. This is repeatedly criticized abroad. The impression prevails there: the Germans simply don’t want that.
Where do you see the blame for the misery?
To date, politicians have not made a decision, but have declared that continued operation of the nuclear power plants is not feasible. This contributes to public confusion. Without a clear political decision, especially on the part of the Federal Chancellor, no reliable business planning can take place. I have full understanding for the operator, especially with such a complex technology. However, if a decision were made by the government and the Bundestag in a timely manner, the operators could develop an action plan that shows the criteria under which continued operation is possible. It would then be the task of the operators to provide information and to state clearly what is feasible under what conditions and at what cost. Then the government would have to show its colors. Even Japan is phasing out and going back to nuclear power.
The large energy suppliers in Germany almost went bankrupt in their nuclear power plant business and want to avoid any risk. So does the state have to take on the risk as well?
Politicians are discussing a gas surcharge of up to 34 billion euros. In my view, it would not be equally expensive if we kept our existing nuclear power plants running. It cannot be explained to the people in our country that they will have to cut back and save extremely financially in the coming months as a result of the Russian war of aggression against Ukraine and also home-made mistakes in German energy policy. It is also inexplicable when politicians come up with proposals to clean themselves with a washcloth instead of a shower – while we are shutting down existing and safe energy generation capacities at the same time and, moreover, in the winter months.
But at the time, the nuclear phase-out was supported by the vast majority of “people in the country”.
Important parts of the Greens, but unfortunately also left-wing circles remote from industry, have created an atmosphere in the past few decades in which industry has been left behind. And take a look at some of the TV reports: If there is a report on industry, the pictures are often characterized by a lot of dust and dirt – and less by ecological efficiency. This shapes public opinion and reduces social understanding of the economic importance and concerns of the industry.
Do you blame the media?
The media coverage certainly contributed to this atmosphere. But we in companies should also put our own house in order: the economy itself has simply set a spiral of silence in motion – for whatever reason. Maybe it’s because of globalization that many companies no longer focus enough on their home market. This can also be seen in the shortage of skilled workers: in the past, people with a lower secondary school diploma were considered difficult to place, but today these young people are urgently needed. Fortunately, however, there is a change in thinking here, and industry in particular is becoming an attractive employer.
In the years before you became Bilfinger boss, you only traveled abroad, most recently as CEO of the Danish mining technology manufacturer FLSmidth. How do you look at Germany there?
I feel like we’re stepping back into a regulatory era where we put up little signs everywhere that say, “Entering the green space is prohibited – parents are responsible for their children.” Such a mentality is detrimental to the economy Germany out. Many companies and executives from abroad do not want to live in such a culture. While in the USA, for example, there is a lot of talk about what is possible, in Germany the focus is almost exclusively on the reasons why something should not be possible. From the point of view of the political and economic circles in other countries that are accessible to me, a punishment rather than a motivation culture is cultivated in Germany.
What is your response to the nuclear debate?
A chancellor’s decision to let the three existing nuclear power plants continue to run for two or three years would be ideal. That would also generate good will among the population. Everyone would see: The federal government has stretched itself on the subject. Then I, as a citizen, am willing to stretch myself and support uncomfortable austerity measures – not because the state tells me to, but because we are a community and have a common goal.
So you’re also complaining about a communication problem?
Yes, a better information policy for the population would be very important. Politicians must make it clear why there is a reduced gas supply, what is being done about it and what we want to use the remaining quantities for – and also what the alternatives are. We still talk far too little about this in Germany. Investing in alternative energy sources is right and a must, but at the same time conventional energy sources should only be phased out to the extent that new energy sources can be ramped up as stable and cost-effective alternatives.
Mr. Schulz, thank you very much for the interview.
More: This is how EU officials plan to intervene in the electricity market