Michael Lewis
CEO of Uniper
Uniper's bold vision
Balancing energy security and sustainability.
While Uniper may be only eight years old on paper, its origins extend nearly a century back into German energy industry history. While the government had to intervene in 2022 to stabilise the company after two years of turbulence caused by insufficient gas supplies from Russia, a record operating result followed in 2023. Michael Lewis has been CEO for just under a year. He is spreading a spirit of optimism and has set out to transform Uniper from an 80% fossil-fired company to an 80% green flexible energy-generation company by 2030. An incredible task? Lewis talks about his dream job. And we talk with him.
After all, you joined the company in anything but calm, stable times.
Why do you still describe it as a dream job?
Michael Lewis: Taking on the CEO role at Uniper amidst challenging times is a testament to the dream job it represents. Our distinctive portfolio and position in the energy landscape are not just about maintaining security of supply in terms of energy; they are also about setting the pace for a sustainable future. We have shown resilience and innovation during the crisis, and we are poised to continue this trajectory. It is a privilege to lead a company that is not only survivingbut thriving and shaping the energy landscape. It was also important for me personally. I started my career in in one of the predecessor companies of Uniper in 1993, so it was a real honour to become CEO 30 years later.
Given Uniper's ambitious shift towards a sustainable future, how do you see its unique position influencing the massive transformation within the energy system?
Michael Lewis: Our strategic vision for a sustainable future is driven by our extensive portfolio, deep customer insights, and leadership in the energy sector. With an €8 billion investment by 2030, we aim to balance supply security with decarbonisation. Our strategy focuses on customer needs, enhancing our portfolio with flexible, low-carbon plants, and aiming for 80% green generation by 2030. We're also integrating green gases like hydrogen, optimising energy trading, and asset operations to ensure reliable supply and shape the future energy landscape. This positions Uniper as a catalyst in driving the energy transition.
Optimisation of energy trading and asset operations remains a key pillar, allowing us to maintain a reliable supply of energy while transitioning to greener sources. Our approach is not just about meeting the current demands but also about anticipating
and shaping the future energy landscape.
Can you elaborate on the strategic importance for Uniper of the "Deutsche Kraftwerksstrategie," under whose framework 10GW of H2-ready CCGTs will be auctioned soon, and how it aligns with Uniper's plans for decarbonisation?
Michael Lewis: We are of course keen on participating in the construction of new hydrogen-capable gas power plants in Germany. We welcome the federal government's plan to introduce a technology-neutral capacity mechanism, expected to
be operational by 2028 at the latest.
The economic framework conditions are crucial for our decision-making. The “Deutsche Kraftwerksstrategie” is a crucial step in the right direction, as only with a balance between clean flexible generation capacity and Renewable energies, we will be able to form a sustainable, reliable and cleaner energy market. The "Deutsche Kraftwerksstrategie" is key to delivering this.
Green gases and the capture and storage of CO2 play a central role in the Group's transformation. How will this be done in concrete terms and what investments are involved?
Michael Lewis:
"The implementation of carbon capture and storage(CCS) is a pivotal lever in the decarbonisation efforts within industry and potentially gas power plants, along side the establishment of a hydrogen economy."
Utilising a spectrum of technologies is imperative to curbing CO2 emissions. Hence, we applaud the Carbon Management Strategy of the federal government. Leveraging our expertise from operations in the UK, Uniper is for example poised to develop a new low-carbon power plant featuring CCS technology at the Connah’s Quay site. Through initiatives like this, we contribute
to advancing our customers' decarbonisation journey with secure and greener energy, while ensuring affordability. Sustainable
transformation necessitates societal and economic viability, with mutual benefit for all stakeholders, including our company.
Investment of >€8 billion 2023-2030 in growth and change is a strong signal to the market and the public: What challenges do you see for the realisation of the planned investment sum by 2030?
Michael Lewis: The investment exceeding €8 billion between 2023 and 2030 signals a robust commitment to market and
public stakeholders. There are several aspects to be considered: Firstly, while we have a plethora of projects, our focus is currently on accelerating those with the highest priority and the most strategic and economic alignment. Secondly, the realisation of some projects, hinges on a reliable regulatory framework. Given the long-term nature of these investments, regulatory predictability is crucial for accurately assessing the business case. Lastly, a pragmatic approach is essential in executing our strategy, mirroring the broader imperative of driving the energy transition. This necessitates flexibility and adaptability in navigating evolving market dynamics and regulatory landscapes.
How does the EU's requirement for the German government to reduce its stake in Uniper by 2028 affect the pace and direction of your transformation strategy?
Michael Lewis: Uniper has been on a transformative path since its founding in 2016. It is true that the German government will have to reduce its stake by the end of 2028 – as management, we focus on driving the necessary changes that will put Uniper in the best possible market position and provide the German government with the best of options.
We finished 2023 with exceptionally good results, giving us financial flexibility to systematically implement our strategy. Uniper is back and will only grow stronger - every step we are currently taking in terms of strategy implementation is also an important step towards capital market readiness, providing the German government with every option for an exit.
As a big election year approaches, how do you see Uniper's role in aligning with customer needs to help them reduce their carbon emissions, while providing reliable energy supplies, and what are your hopes for policy changes to support this goal?
Michael Lewis: Uniper provides approximately 1,000 customers, including municipalities, industries, and grid operators with energy. We know what they are asking for and what their challenges are. Costs and regulatory uncertainty belong to these. We all know that the path from "energy today" to "energy tomorrow" requires perseverance. However, we must not lose sight of the time factor and should not get caught up in ideological debates but act pragmatically.
First, however, we must accept interim solutions that may not be perfect, but that bring us one step closer to the goal of a sustainable energy system. Taking hydrogen for example: Since green hydrogen will not be available in sufficient quantities in the foreseeable future due to its high cost, we should promote the use of blue hydrogen.
When blue hydrogen is produced, the CO2 is captured and does not enter the atmosphere. If we succeed in replacing grey hydrogen, which is produced with fossil fuels and used in refineries, chemical companies, and the steel industry, with blue hydrogen as quickly as possible.
This would be a huge lever for reducing emissions. Although there is now broad political agreement that carbon capture technologies are needed, there is still a long way to go before they are implemented. Offshore storage and export options
urgently need to be considered, especially as this can bring considerable cost benefits.
What exciting developments have you witnessed in meeting interconnected challenges and common goals, especially in the energy industry's role in sustainability transitions across various sectors?
Michael Lewis: There have been many exciting developments. I think there is a consensus about the fact that we need to drive drastic changes to protect the climate.
"Creating a resilient and sustainable energy system for Europe requires a level of scale, ambition, and urgency akin to the construction of the Great Wall of China."
At Uniper, we acknowledge our responsibility as a company and are committed to leveraging our expertise, dedication, and willingness to find pragmatic solutions to pave the way towards a more sustainable and secure energy future. It's evident
that our efforts matter, but it's equally crucial for politics, the energy industry, other industries, and the entire population to pull together. We've seen successful collaboration in times of crisis in recent years, and we must continue in this spirit. We need to act, preferably today rather than tomorrow.
