Siemens Energy Boss: Hydrogen can be a Billion Dollar Business for Us

The technology is about to break through, says the CEO of the newcomer to the stock exchange. Switching from conventional to renewable energy will cost more jobs.

The new energy technology group Siemens Energy wants to massively expand its hydrogen business. “Hydrogen can be a billion dollar business for Siemens Energy,” said CEO Christian Bruch in an interview with the Handelsblatt. The technology could become a mainstay of the new group.

Hydrogen could make the breakthrough now, said Bruch. However, the framework conditions have to be created for this: “We need cheaper electricity prices, higher CO2 prices and, above all, a consistent expansion of renewable capacities.”

Companies such as Siemens Energy, RWE and Thyssen-Krupp are also optimistic because Berlin and Brussels have launched a number of initiatives in recent months to promote hydrogen. “As Europeans, we want to become number one in the world when it comes to hydrogen technologies and secure jobs in Europe in the long term,” said Federal Economics Minister Peter Altmaier.

According to a study on behalf of the EU Commission, more than 5.4 million jobs could be created in the European hydrogen industry by 2050 with a turnover of more than 800 billion euros per year.

The transformation from conventional energies to renewables and hydrogen could, however, cost additional jobs at Siemens Energy. The gas turbine market is constantly shrinking, Bruch said. “But building an electrolyser – even for a large system – requires less capacity than building a gas turbine.” He couldn’t rule out further job cuts.

The CEO confirmed that he wants to improve the margins of the low-income group quickly. “We have to increase profitability significantly and reduce costs extremely.” When asked when Siemens Energy will be back in the black, he said: “Hopefully as soon as possible.”