Business

Germany’s Steag Separates Renewable Energy Business

Steag Bundles Green Business Initiatives Under Iqony, Separating It From Black Coal Business Under Steag Power GmbH

Anu Bhambhani
  • Steag GmbH has spun off its green growth businesses under a new brand name called Iqony
  • It will cover solar, wind, geothermal, hydrogen, storage and gas-fired power plants
  • Steag's SENS business division has also been brought under Iqony as Iqony Solar Energy Solutions

One of the largest German utilities Steag GmbH has bifurcated its business into 2 separate entities, bundling the coal business under Steag Power GmbH and the green growth division under Iqony, as the group gets ready to start the process of selling itself in early 2023.

Iqony is focused on renewable energy technologies as solar, wind and geothermal energy along with hydrogen, storage technologies and gas-fired power plants. It offers holistic solutions for decarbonization, decentralization and digitalization of energy supply. This business segment will also offer engineering services with around 2,300 employees.

According to the group, "Iqony focuses on renewable energies and bridging technologies that can also be used in a climate-neutral manner in the future."

Steag Group's solar focused subsidiary SENS, previously known as Steag Solar Energy Solutions, will remain SENS but it will now operate as Iqony Solar Energy Solutions.

"The division of the group has laid the foundation for a significant increase in the value of the green growth area and improved Steag's refinancing options," stated the management.

Steag Power operates hard coal-fired power plants at 6 locations in Germany that comprise around 5% of the total electricity generation in the country. It aims to eventually phase out electricity generation from hard coal.