Evonik to substitute up to 40% of natural gas at its German sites



Aug 8 (Reuters) - German chemicals group Evonik Industries EVKn.DE said on Monday it was substituting up to 40% of natural gas at its domestic sites, as the energy-intensive sector prepares contingency plans in case of Russian gas supply cuts.

German chemical companies, which are highly dependent on Russian gas imports, are scrambling to prepare for further gas supply cuts in response to Western sanctions imposed following Russia's invasion of Ukraine.

"By substituting natural gas with LPG and continuing to operate the coal-fired power plant, we can completely dispense with natural gas for energy supply at our largest German site in Marl - without any significant curtailments in production," said Chief Executive Christian Kullmann, in a statement.

"The energy supply at our European sites is thus largely secured, even in the event of a Russian gas stop," he added.

The most significant measure was being implemented at Evonik's largest German site in Marl, the company said, with liquefied petroleum gas (LPG) supplied by British energy company BP BP.L , replacing natural gas as fuel for its new power plant.

The specialty chemicals maker said it was successfully testing the use of LPG in close cooperation with Siemens Energy ENR1n.DE .

Evonik also said it was securing coal supplies for its coal-fired power plant in Marl after earlier plans to shut it down this year, and was seeking to ensure continued operation beyond 2022.

Energy supplies to the company's sites outside Germany were largely independent of gas supplies from Russia, the company said.
Reporting by Karol Badohal Editing by Paul Carrel and Louise Heavens

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.