Uniper delays EUR 8bn investment plan amid weak hydrogen demand

German energy group Uniper SE (ETR:UN01) will need more time to reach the target of investing around EUR 8 billion (USD 8.63bn) in its green transformation due to low demand for green hydrogen from customers and slowly developing regulatory framework.

“As of today, there are few major customers looking for green hydrogen and interested in entering into corresponding supply contracts,” Uniper said in its third-quarter financial statement.

Do you know we have a daily hydrogen newsletter? Subscribe here for free!

The company therefore expects that it will complete the investment plan in the early 2030s instead of 2030 as originally planned.

“Uniper will only invest in projects that are based on a viable business case and that are expected to generate an appropriate return on investment,” the company said.

The German energy group first revealed its investment plan in August 2023. Since then the market environment has deteriorated, Uniper said in its latest statement. Despite progress in the German federal government’s power plant strategy, the consultations have taken longer. As a result, the first auction is currently not expected until the first half of 2025 at the earliest, or at least a year later than market participants had expected.

Despite the slowly developing regulatory framework, Uniper confirmed its goal of becoming carbon-neutral by 2040. The company also remains committed to reducing its cope 1 and Scope 2 emissions by over 55% by 2030 versus the 2019 level.

(EUR 1 = USD 1.079)