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Massive green energy company reports nearly $1 billion in losses, calls for ‘further governmental action’

Global green energy company Siemens Gamesa reported Thursday that it lost a staggering $967 million in the three months from October to December.

The self-proclaimed ‘world leader in offshore power generation’, the Germany-based company said in the financial year that the wind industry faces a range of adverse pressures that will lead to negative growth in recent months and years. We pointed it out in our first quarter earnings report. 2023 was released Thursday morning. The company added that the government should: further help the industry To ensure future positive growth.

Jochen Eikhold, CEO of Siemens Gamesa, said in a statement: “The negative growth in the services business shows that much work is needed to stabilize the business and restore profitability. .

“Although the outlook for global wind demand over the next decade has increased further at the beginning of fiscal year 2023, further government action is needed to close the gap between ambitious targets and actual installations. Action is required,” the company added in the release.

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A wind farm was photographed off the coast of Montauk, New York on April 16, 2021.
(Mark Harrington/Newsday RM via Getty Images)

He said the Inflation Reduction Act, the $739 billion climate and tax bill President Biden signed into law in August, and other European Union actions would help the company’s business, but what was measured wasn’t enough.

Siemens Gamesa said it faces headwinds including slow permitting. Power grid constraints Regulatory uncertainty. Such market conditions have resulted in “substantial losses” to the wind power business, causing job destruction and investment constraints.

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The company concluded that the “large gap between expectations and targets for recent installations” is jeopardizing the energy transition.

Overall, Siemens Gamesa’s losses reported on Thursday represent a loss increase of more than 100% compared to the same period last year, according to the company.

The poor performance of one of the world’s largest wind turbine makers has prompted the government to continue pushing an aggressive wind strategy to decarbonize the grid and reduce reliance on fossil fuels for power generation. It’s because

Home Secretary Deb Haaland has ordered agencies to expand offshore lease sales for wind development on the country's east and west coastlines and the Gulf of Mexico.

Home Secretary Deb Haaland has ordered agencies to expand offshore lease sales for wind development on the country’s east and west coastlines and the Gulf of Mexico.
(AP Photo/David Zalubowski, File)

“But as you can see, we will deepen our partnership on offshore wind and climate in general and create jobs. Good job, union job,” Biden said in June.

“And my administration first set a bold target: 30 gigawatts by 2030. That’s 10 million. 10 million offshore wind farms,” he continued. “Ports are back to being the engine of the economy, where foundries and factories are operating, creating jobs again. We are also using technologies such as battery storage to build a more resilient grid. I have.”

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But international environmental groups have repeatedly warned. Wind development is falling It falls far short of what is needed to transition from fossil fuels to green energy.

According to the Global Wind Energy Council’s report on offshore wind power, a record 21.1 gigawatts of offshore wind power will be connected worldwide in 2021, but that figure is less than the amount needed to reach net zero. far below.

And the International Energy Agency says we need to install 70-80 gigawatts of offshore wind each year by 2050 to shift away from our dependence on fossil fuels.

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