BayWa sells Germany's most powerful geothermal plants to Stadtwerke München
Photo: Edward Beierle
BayWa AG, Munich has sold its shares in the Kirchstockach and Dürrnhaar geothermal power plants (Bavaria) to Stadtwerke München (Munich City Utilities – SWM). With around 45 MW of potential heating output and 5.5 MW of electrical power each, these geothermal power plants have the highest performance levels in Germany.
BayWa r.e. renewable energy GmbH, which is responsible for the renewable energy business within the BayWa Group, constructed and commissioned the plants during 2012 and 2013. Before the sale, the plants were owned by Süddeutsche Geothermie-Projekte GmbH & Co. KG, a joint venture between BayWa r.e. and Hochtief PPP Solutions GmbH. Both companies have now sold their shares to the municipal utility company in Munich.
"We are delighted to have found such an experienced and productive buyer as Stadtwerke München. It shows that our sales portfolio in the field of renewables is also capable of attracting interest in Germany," explained BayWa AG's CEO, Klaus Josef Lutz, emphasising the strength of the business model in terms of engineering, building and reselling innovative renewable energy plants. These are the only geothermal plants that BayWa has brought to completion so far. The company now plans to focus on support and consultation for investors in the geothermal sector, both in Germany and abroad.
Plans for the geothermal project began in 2004, undertaken at the time by RENERCO AG, which later merged into BayWa r.e. The long term venture required extensive pioneering work in terms of project development and technical implementation. In recent years, operational challenges associated with this relatively new technology were also successfully resolved. In early 2016, a long term heat supply contract for these plants was concluded with the Ottobrunn municipal utility companies.
Matthias Taft, Board Member of BayWa AG, responsible for the energy business, looks back on the project with satisfaction: "By gradually optimising the plants, BayWa r.e. was able to steadily increase the attractiveness of the assets and has now been able to successfully sell its shares." He went on to explain that as the technology involved was so new, BayWa r.e. faced many obstacles during the development, implementation and operation of the plants, all of which it successfully overcame. "Together with Hochtief, we are very pleased to now be handing over our optimised and efficient power plants to SWM," said Taft.
By acquiring the plants, Stadtwerke München intend to further expand their geothermal portfolio, which should play a significant role with regard to the generation of heat and power throughout the Munich region in the future.
BayWa AG is a globally acting group with core competences in trade, logistics and complimentary services in the core segments Agriculture, Energy and Building Materials. BayWa AG, founded in 1923, has its head office in Munich. The business in the field of renewable energy has been bundled across the Group with BayWa r.e. renewable energy GmbH which trades both nationally and internationally. International activities in the renewable energy sector were hitherto focused on Europe and the United States, until now.