Vattenfall and State of Berlin to negotiate exclusively about German heat business
Vattenfall and the State of Berlin signed a memorandum of understanding today to hold exclusive negotiations about the potential transaction of Vattenfall’s heat business in Germany. A decision about the sale is expected later this year, as per plan.
After Vattenfall announced in May 2022 that it would strategically review its Berlin heat business, Vattenfall Wärme Berlin AG, a thorough process has been conducted with a number of parties involved. Today Vattenfall and the State of Berlin have agreed to make the ongoing negotiations about the potential transaction exclusive.
The parties have a common goal to develop the heat supply in Berlin in a sustainable and future-proof manner, to decarbonize and to secure jobs in the long term.
“Vattenfall is a long-time supporter of the State of Berlin’s goal to become climate neutral as quickly as possible. Berlin is an important partner on our road towards a fossil free heat supply for the city. I’m thankful for the constructive discussions so far and look forward to continue our talks to come to a sustainable future for Wärme Berlin”, says Martijn Hagens, Head of Business Area Heat.
Vattenfall’s heat business in Berlin employs about 1,700 people and supplies hot water and warm heating to about 1.4 million residential units. It owns and operates 10 combined heat and power plants (CHP) as well 105 small block-type thermal power plants and various other facilities. The heat network has a total length of over 2,000 km. In the wake of the energy crisis and heat law discussions in Germany, the demand for district heating connections in Berlin has recently risen by around 70 percent compared to previous years.
For further information, please contact:
Vattenfall Press Office +46 8 739 5010 press@vattenfall.com
See also
Vattenfall completes sale of its heat business in Germany to the State of Berlin
Vattenfall today transferred all shares in Vattenfall Wärme Berlin AG, including the power plants, grids, subsidiaries, employees and shareholdings, to the State of Berlin.
Vattenfall sells its Berlin heat business to the State of Berlin and grants option to buy GASAG shares
Vattenfall has finalised the strategic review of its Berlin heat business and has decided to sell the entire district heating business to the State of Berlin.
