PRESS RELEASE | , 12 February 2021

After the coal exit, decarbonisation begins: opportunities for the industry area of north-eastern

 Heads of government and ministers of eastern German states as well as of city states and Berlin in digital exchange with 50Hertz, industrial union and industry associations.  Agreement made on trustful cooperation to reinforce the “green” power plant area of north-eastern Germany

North-eastern Germany must become a leading European area for the industrial and climate trans- formation. For that purpose, transmission system operator 50Hertz and the industrial union for min- ing, chemistry and energy (Industriegewerkschaft Bergbau, Chemie, Energie, IG BCE) are campaign- ing for a joint initiative of the state governments. To start a series of round table discussions with representatives from the economy, the political world and society, this ambition was discussed yes- terday evening with heads of government and ministers from the 50Hertz grid area - Hamburg, Meck- lenburg-Western Pomerania, , Berlin, -Anhalt, and Saxony - as well as high-ranking representatives from industry and trade associations and from employee representa- tions.

Political and economic representatives agreed that after the exit from coal-fired electricity generation that is now underway, industry and economy must now make the decision to start with climate-neutral production. To ensure this, the development of renewables must be intensified, processes must be made faster and more efficient, and sector coupling must be promoted even more than before. ‘The transformation of the en- ergy sector is an enormous challenge for professionals in eastern Germany. Nevertheless, it also offers the opportunity to turn the area into a pioneer in future technology and create new, good workplaces. That is why a joint initiative of all parties involved is now urgently needed,’ said IG BCE chairperson Michael Vassiliadis. ‘Efficient and reliable power grids that are geared towards the integration of ever increasing quantities of renewable energy carriers are the keystone for the decarbonisation of industry and economy,’ 50Hertz CEO Stefan Kapferer added.

Dr , Minister-President of the state of Saxony-Anhalt and acting President of the Bundesrat: ‘The eastern states have made a significant contribution to the reduction of CO2 in the past decades. This will remain so, as the coal exit particularly concerns central Germany and Brandenburg. We are also facing a difficult structural change. It is essential to secure the industry area and energy supply for the future. Only

1

if we manage to obtain broad social acceptance for the implementation of our goals can the process ahead of us can succeed.’

Today, the north-east of Germany already stands out as a “green” power plant and produces large volumes of electricity from renewable sources, both for its own needs and beyond. The participants consider this a significant locational advantage to keep existing companies and promote new companies to settle here, as the industrial demand for green electricity is on the rise. What is more, many hydrogen and storage projects, whether in Hamburg, Rostock, Lusatia or the Leuna chemical region, confirm the trend of decarbonising pro- cesses with a high energy demand with the aid of green electricity, contributing to the achievement of na- tional and European climate goals and lowering costs in the long term. The initiative launched by 50Hertz and IG BCE, “Mit neuer Energie für starke Industriearbeitsplätze” (“New Energy for Strong Industrial Work- places”), is intended to accelerate this development through coordinated, joint action. Targeted education and training of professionals, efficient administration, planning security for investments and projects of sector coupling at a large industrial scale are needed for this.

During the digital launch event, the participants agreed on trustful cooperation to reach these targets. Among the participants were Minister-Presidents Dr Reiner Haseloff (Saxony-Anhalt), Dr (Brandenburg), (Thuringia) and (Saxony). Other participants were the Minister of Energy, Infrastructure and Digitalisation Christian Pegel (Mecklenburg-Western Pomerania), the minister of economy, energy and labour, Prof. Dr. Jörg Steinbach (Brandenburg), the Senator of Economy and Innovation Michael Westhagemann (Hamburg) and the State Secretary for Administrative and Infra- structure Modernisation, Dr Frank Nägele (Berlin). The Parliamentary State Secretary of the Federal Minis- try for Economic Affairs and Energy and delegate of the federal government for the new states, , took part in the discussion as representative of the federal level. Representatives of the eco- nomic branches were: , General Manager of the Federal Association of the Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft, BDEW), Dr Achim Dercks, acting. General Manager of the Association of German Chambers of Industry and Commerce (Deutscher Industrie- und Handelskammertag, DIHK), Dr Robert Hermann, Managing Director of Germany Trade and Invest (GTAI), Dr Simone Peter, President of the German Renewable Energy Federation (Bundesverband Erneu- erbare Energien, BEE) and Prof. Dieter Russwein, President of the Federation of German Industries (Bun- desverband der Deutschen Industrie, BDI).

The launch event will be followed by further round table discussions with representatives from the economy, associations and the scientific world throughout the year. The goal is to jointly develop concrete and con- structive proposals for the specific requirements of individual sectors.

Contact details 50Hertz Transmission GmbH | Heidestraße 2 | 10557 Berlin | Germany Press Officer | Volker Gustedt | T +49 30 5150 2878 | M +49 151 5537 7634 | [email protected]

2

About 50Hertz 50Hertz operates the electricity transmission system in the north and east of Germany, which it expands as needed for the energy transition. Our extra high voltage grid has an electrical circuit length of about 10,490 kilometres, or the distance between Berlin and Rio de Janeiro. The 50Hertz control area covers the Länder of Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt, and Thuringia, as well as the city states of Berlin and Hamburg. Within these regions, 50Hertz and its 1,300 employees ensure that 18 million people are supplied with electricity around the clock. 50Hertz is a forerunner in the field of secure in- tegration of renewable energy: in our grid area, more than 60 percent of the consumed electricity is gener- ated from renewable sources; by 2032, it is our goal to securely integrate 100 percent renewable energy into the grid and system over the course of a year. The shareholders of 50Hertz are the Belgian holding Elia Group (80 percent), which is listed on the stock exchange, and the KfW bank group with 20 percent. As a European TSO, 50Hertz is a member of the European Network of Transmission System Operators for Elec- tricity (ENTSO-E).

More information: Live data from our network is available in the 50Hertz app for Apple, Android and Windows. Information and download links can be found under 50hertz.com/app.

Contact details 50Hertz Transmission GmbH | Heidestraße 2 | 10557 Berlin | Germany Press Officer | Volker Gustedt | T +49 30 5150 2878 | M +49 151 5537 7634 | [email protected]

3