Eon replace the energy business as nuclear, coal and gas to renewable energy.
German energy company Eon breaks out energy activities nuclear, coal and gas to invest in renewable energy and clean up its massive debt mountain of 300 billion.
(Updated) In what the company describes as an effect of the German energy transformation, Energiewende, one of the largest players in the energy market, Eon, to redo their entire business. The measure was announced in a live press conference at 11.00 on Monday.
Conventional energy generation from nuclear, coal and gas and energy trading should be placed in a separate company, where Eon, however, will have a minority stake. The conversion will be completed in 2016, writes Eon in a press release.
Instead, Eon invest in renewable energy, network operations and customer solutions.
– The current business model does not correspond to the new challenges. Therefore, we must make a radical shift, says Eons CEO John Teyssen.
Eon currently has debt of nearly 300 billion. One method to reduce debt is to do away with the business which has been in several southern European countries like Spain, Portugal and Italy.
The change will also affect the Eon’s Swedish operations, says Jakob Holmström, Communications Manager for Eon Sweden.
Eon’s current activities in the nuclear and hydropower will end up as a subsidiary of the newly formed international company from 2016.
Eon will continue to invest in what is called innovation customer solutions, where man with customers will help with energy efficiency and sustainable living. The company will also be greater extent than today to help with optimal energy use.
How the work should be done depends on the type of customer, from private clients to companies as well as a social commitment, such as investment in electric cars.
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