Dusseldorf The Essen-based chemical group Evonik could continue to operate its own coal-fired power plant in the Marl chemical park longer than planned. “We are examining this step intensively in order to be able to make a contribution to security of energy supply in Germany,” said CEO Christian Kullmann on Thursday at the balance sheet press conference. A decision is still pending.
Evonik is thus reacting to possible natural gas bottlenecks that could arise as a result of the Ukraine war. The attack put a significant strain on relations with Germany’s most important exporter, Russia. Politicians are therefore calling for all alternatives for the domestic energy supply to be examined. The capacity of the plant in the north-eastern Ruhr area can not only be used for its own needs, but also serve the general power grid, said Kullmann.
Evonik’s coal-fired power plant is the last remnant from a time when the chemical park supplied itself with electricity and steam generated from hard coal. The system was actually supposed to be shut down this year and replaced by a modern gas-fired power plant that will go into operation in early summer.
Evonik built this new gas and steam turbine power plant together with Siemens Energy. It will generate 180 megawatts of electricity and 440 tons of steam per hour. With the offer to maintain the coal-fired power plant that is scheduled for decommissioning, gas supplies could be saved for the winter.
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According to Kullmann, Evonik is thus following the “primacy of politics” that now applies. You are acting in the “Habeckian sense”, he said, referring to Federal Minister of Economics Robert Habeck (Greens). We fully support his goal of securing the energy supply as much as possible. Otherwise there is a risk of considerable economic damage.
“Acting people err. It is clear: This pipeline must not and will never go into operation”
Kullmann is also President of the Association of the Chemical Industry. Asked about his long support for the Nord Stream 2 pipeline project, he said: “People who act are wrong. It is clear: This pipeline must never and will never go into operation.”
However, the Evonik boss wants to hold on to Evonik’s business in Russia.
(Photo: imago images/Future Image)
The Evonik boss found it visibly difficult on Thursday to talk about the successful business year of the specialty chemicals company in view of the war in Ukraine. He fully supports all sanctions against Russia, even if Western companies will suffer.
“Anyone who starts such a war is not our opponent, but our enemy,” said Kullmann. “And by that sharp word, I don’t mean the Russian people, but the autocratic regime.”
However, the Evonik boss wants to hold on to Evonik’s business in Russia. In terms of volume, this is clear: in 2021, the group made sales there of around 200 million euros, with a total group turnover of 15 billion euros. A small sales team works for the Essen-based company in Russia.
The group mainly sells additives for food and animal feed in agriculture there. Kullmann thinks it is wrong to no longer deliver such products, which are important for the basic supply, to the country. This only affects the population who are not responsible for the war.
Evonik made 25 percent more profits last year
Economically, Evonik is in good shape. In 2021, operating profit (adjusted Ebitda) rose significantly by 25 percent to 2.4 billion euros, and sales increased by 23 percent. Demand was so strong that the group was largely able to pass on the higher costs for raw materials and preliminary products to customers in the form of price increases, said Kullmann.
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The Chairman of the Management Board expressed his confidence for the current year. Evonik expects profit growth of at least ten percent in the first quarter of 2022. For 2022 as a whole, Evonik is planning sales of between EUR 15.5 and 16.5 billion and an operating profit of between EUR 2.5 and 2.6 billion.
All segments contributed to last year’s growth. Evonik has benefited greatly from the billions of vaccinations worldwide to protect against Covid-19. The group produces so-called nanolipids for mRNA vaccines from several manufacturers, with the help of which the active ingredients are transported to the target in the human body.
Evonik is increasingly focusing on such biotechnologically driven products. In return, bulk businesses that require a lot of capital and are subject to tough price competition are sorted out.
This applies, for example, to the production of so-called superabsorbents, which are used as absorbent materials in diapers. Evonik has already spun off this business. Kullmann emphasized that a sales process has not yet been started.
More: These companies are shutting down their business with Russia.