German power and gas utility RWE is narrowing its focus in order to concentrate on wind and hydro power.
The company will be reducing its activities in biomass fuels like wood and straw.
A spokesman for RWE Innogy said, ‘RWE no longer considers the business with smaller biomass facilities as core business.’
The spokesman added that the company doesn’t plan further substantial investment in biomass facilities in the future.
At the same time as the announcement, the company sold majority stakes in two small German biomass facilities to Koehler Renewable Energy.
RWE Innogy said the sale reflects the company’s tight financial situation, commenting, ‘In times of scarce [financial] resources the transaction contributes to retain the financial leeway for projects, particularly in wind and hydro energy.’
With continued macroeconomic uncertainty, RWE is implementing a cost cutting programme throughout the business in order to save €1bn in 2014.
The company is also considering disposing of other biomass businesses such as a wood pellet factory in Waycross, Georgia, however, no decisions have yet been made.
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