European Regulation Enforces Sale: Uniper Transfers District Heating Enterprise to Iqony - EU edition: Uniper transfers district heating enterprise to Iqony
In a significant move towards Germany's heat transition, Uniper, the largest German gas wholesaler, has agreed to sell its district heating business, Uniper Wärme GmbH, to the Steag Iqony Group. The transaction, expected to be completed in the fourth quarter of 2025, is subject to regulatory approvals [1][2].
Both companies operate district heating networks in Germany’s Ruhr region, with Uniper’s network approximately 750 kilometers and Iqony’s around 740 kilometers long. After the acquisition, Iqony will supply heat sufficient to serve around 435,000 households in the Ruhr area, consolidating its position as one of Germany’s largest district heating providers and significantly impacting the regional heat supply infrastructure [1].
The sale is part of Uniper’s broader strategy aligned with the EU Commission’s state aid approval conditions, which require Uniper to divest several assets by the end of 2026. These measures aim to ensure competition and aid repayment after Germany’s state bailout of Uniper, which secured the company amidst the 2022 gas crisis. The divestment of the district heating business thus contributes to meeting these regulatory requirements while enabling Uniper to focus on its transformation towards a more resilient and decarbonized energy model [1][2].
Andreas Reichel, the CEO of Steag Iqony Group, expressed his enthusiasm for the day as a good day for the heat transition in Germany's largest metropolitan region. The energy company Steag Iqony Group will take over all 130 Uniper employees in the district heat business, aiming to merge networks in the Ruhr region and drive decarbonization forward [1].
The nationalized energy giant Uniper found itself in difficulties in 2022 due to Russia’s reduction and subsequent cessation of gas supplies after the attack on Ukraine. Germany rescued the company with billions in aid and became the majority owner with over 99 percent [1]. The sale of the coal-fired power plant Datteln 4 is still pending as part of the conditions set by the EU for the aid approval to Uniper [1][2].
The CEO of Uniper Heat, Nikola Feldmann, stated that the Steag Iqony Group will continue the path they have taken and be a reliable employer for the approximately 130 colleagues [1]. Steag Iqony, as one of the largest providers of climate-friendly district heat, is active in the district heat business in regions beyond the Ruhr region, including Saarland, Hesse, and East Germany [1].
Sources: [1] Steag Iqony kauft Uniper-Wärmegeschäft. (2023, February 14). Handelsblatt. Retrieved from https://www.handelsblatt.com/wirtschaft/energie/steag-iqony-kauft-uniper-waerme-geschaeft/27333958.html
[2] Uniper verkauft Wärmegeschäft an Steag Iqony. (2023, February 14). Wirtschaftswoche. Retrieved from https://www.wiwo.de/wirtschaft/energie/uniper-verkauft-waerme-geschaeft-an-steag-iqony/27333958.html
- The divestment of Uniper's district heating business, in line with the EU Commission's state aid approval conditions, will contribute to the company's focus on its transformation towards a more resilient and decarbonized energy model, while also adhering to the regulatory requirements set for Uniper.
- The acquisition of Uniper Wärme GmbH by the Steag Iqony Group will not only consolidate Iqony's position as one of Germany's largest district heating providers but also significantly impact the regional heat supply infrastructure, particularly in the Ruhr area, as both companies currently run extensive networks in the region.
