E.ON and innogy integration to retain the name E.ON
E.ON and innogy have made the first major decisions regarding the plans for E.ON’s future brand, organisational setup, and innovation activities. The new company will retain the name E.ON as a result of decisions set to be implemented after the closing of the transaction, which is subject to the approval of the relevant antitrust and regulatory authorities.
The structures of E.ON´s German regional suppliers and innogy´s German regional companies are to be retained. A structure comparable to E.ON's regional utilities is to be established in innogy's core supply area. For this purpose, innogy’s concessions business, Westnetz, its shareholdings in municipal utilities, and its cooperations with municipalities will be integrated. The objective is for operating units to continue to have as much room for manoeuvre and to be as close to customers as possible. This is why the corporate headquarters will be set up to primarily focus on key management tasks.
According to a press release: the new E.ON wants to make an “important contribution to the success of the energy transition and to climate protection in Europe. For this purpose, it will further enhance its innovative strength. It therefore intends to establish an innovation team at corporate headquarters that reports to the CEO and that works across the company’s product ranges and markets”.
In addition, E.ON and innogy have completed an initial validation of the previously identified EUR 600 to EUR 800 million in synergy potential starting from 2022 onwards. innogy, E.ON and RWE, in consultation with their Group Works Councils, reached an Agreement in Principle on Collective Bargaining for Germany with the unions ver.di and IGBCE in May.
Uwe Tigges, CEO of innogy SE said: “The first joint decisions with E.ON regarding integration planning are the result of an open and constructive dialogue. I’m confident that innogy’s strengths will live on in the new company.”
E.ON CEO Johannes Teyssen said: “We’re very satisfied with the initial results of our joint integration planning. After the successful closing of the transaction, these decisions will enable us to ensure that the new E.ON is resolutely customer-centric and innovative.”
The transaction continues to be subject to the approval of the relevant antitrust and regulatory authorities. E.ON and innogy will remain independent companies until the transaction closes.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.