Düsseldorf (energate) - Holger Kreetz joined Uniper's management board on 1 March, where he is responsible for the company's operations and thus for its transformation. In his first interview in his new position, he talks about Uniper's plans for the Wilhelmshaven site, the upcoming transformation of the company and the role of the German government as the new owner of the company.
energate: Mr Kreetz, you are taking over as chief operating officer, COO, of Uniper at a time of upheaval. Uniper's management is in the process of finding its footing. The German government as the owner is also bringing about changes, and there is already a lot of pressure to transform the company. Where do you set your priorities in this field of tension?
Kreetz: I see two main priorities: Our most important task is to ensure security of supply in Germany and Europe with our existing portfolio. We are doing this, for example, with the new LNG terminal in Wilhelmshaven, with our gas storage business, and with more than 2,000 MW of power plants that we have put back on the market. The second task is to continue the green transformation of the company. We want to reduce CO2 emissions to zero by 2035 and completely decarbonise our portfolio. This is a huge challenge. In addition, I see a third internal challenge: to bring calm to the company and the environment. 2022 was indeed a disruptive year - for Uniper, but also for society as a whole.
energate: In December, you commissioned Germany's first LNG terminal in Wilhelmshaven. What is your interim assessment after the first few weeks of operation?
Kreetz: The first weeks and months went better than we expected. You have to expect teething problems with large infrastructure projects. In fact, the operation in Wilhelmshaven has been almost trouble-free so far. We took delivery of the floating terminal, the Höegh Esperanza, on 15 December and fed the first gas into the German grid a few days later. Since then, a new LNG tanker has docked every seven to eight days, bringing enough gas for 50,000 to 80,000 households. These are large volumes that have been a key factor in helping us get through the winter in good shape.
energate: ecently there has been a debate about whether the planned LNG infrastructure in Germany might be oversized. What is your view on this?
Kreetz: In my opinion, the whole discussion is misguided. We have just experienced that we were only able to prevent a national gas emergency by quickly building new LNG terminals. We should not give the all-clear just yet. We need to get through the next winter in good shape. The other terminals that are being planned or built will also make an important contribution. We also need to ensure that we build a flexible infrastructure. With the regasification units, the floating storage and regasification units, we are talking about ships that stay where they are as long as they are needed. And then they leave. The whole onshore infrastructure, on the other hand, is planned to be hydrogen ready, so that we can use it even after the switch from natural gas to hydrogen.
energate: When will the switch from LNG to hydrogen and its derivatives take place for your site in Wilhelmshaven?
Kreetz: The Höegh Esperanza has been chartered by the German government for ten years. This means that the terminal will be available to us for gas imports until the end of 2032, if we need it for that long. In parallel and independently, we are planning a large import terminal for ammonia in Wilhelmshaven. At the same time, we want to build a large electrolyser with a capacity of up to 1,000 MW to produce green hydrogen from offshore electricity. Together, the two will be able to produce 10 to 20 per cent of the hydrogen we will need in Germany by 2030, thus making a significant contribution to the hydrogen supply. In addition, other players are planning further projects at the Wilhelmshaven site, which will ultimately create an infrastructure hub for hydrogen and its derivatives in a new dimension.
energate: When will the first hydrogen arrive in Wilhelmshaven?
Kreetz: Our plans are for the first investment decisions to be taken in the second half of this decade, i.e. in 2026 or 2027, and for the plant to go into operation one or two years later. This means that the first green hydrogen will arrive in Wilhelmshaven before 2030, but it will also be produced on site. We believe that we will find customers for the green hydrogen for both projects, import and electrolysis, because the demand for green hydrogen will increase massively by the 2030s at the latest.
energate: Where will the hydrogen for import come from?
Kreetz: As Uniper, we have more than ten preliminary contracts with potential suppliers of green ammonia. These range from the North American continent to North Africa, the Middle East and Northern Europe. On the one hand, this shows how far the diversification of supply sources has already progressed and, on the other hand, how large the global market of potential suppliers and countries of origin is. There are already numerous national and international Uniper projects that form the basis for the large-scale use of hydrogen as an energy carrier in the future.
energate: The nationalisation of Uniper has recently fuelled the idea that the government could use its new subsidiaries, Uniper and Sefe, to speed up and control the introduction of hydrogen. Is that an issue for you?
Kreetz: You are referring to a discussion paper prepared by the Boston Consulting Group for the German government, which was recently covered in the media. That was not our paper and does not reflect our positions. So I don't want to comment on it.
energate: Regardless, there is talk that Uniper could act as a vehicle for the German government in the energy market in the future. Is that a scenario you are comfortable with?
Kreetz: First of all, we are very grateful to the federal government for helping us out of this massive financial crisis last year. But it is also true that we never wanted to be a state-owned company. I also have the impression that it is not at all in the state's interest to hold Uniper as a long-term investment. Moreover, it is also a requirement of the EU that Uniper be privatised again by 2028.
energate: Uniper only avoided bankruptcy a few months ago thanks to state aid. Do you have the means to occupy a future market like hydrogen? After all, there is a huge need for investment.
Kreetz: It's about organic transformation. Uniper has a strong portfolio and I am convinced that we will be able to generate sufficient funds from our existing business through operating income alone to manage our transformation. For example, we are converting coal-fired power plants into hydrogen hubs, we are converting our gas storage facilities into hydrogen storage facilities. Hydrogen is not about today or tomorrow, it is about a long-term investment perspective. I am optimistic that we will be able to establish a good position in the market.
energate: Recently there has been criticism from the industry that the overall development of the hydrogen sector is too slow. Do you share this view?
Kreetz: We have indeed been too slow in many places in Germany. Let's take the example of the EU Renewable Energy Directive RED II, which lays down important guidelines for hydrogen production. After endless discussions, the directive was finally launched in mid-February. The whole process has taken far too long and has held back the market. Sometimes I would like to see more pragmatic solutions that leave room for optimisation. But we have shown in last year's supply crisis that we can move quickly if we have to. We now need to apply the new German speed and determination that we have learned at the LNG terminals to green technologies. If we do, we will not only succeed in the hydrogen ramp-up, but also in overcoming the climate crisis.
The interview was conducted by Rouben Bathke.
