BASF to cut back Germany investments on high energy costs: CEO

11 February 2014 13:37 Source:ICIS News

LONDON (ICIS)--BASF expects to reduce its investments in Germany because of the country’s high energy costs, the CEO of the Germany-based chemicals major said on Tuesday.

In the coming five years Germany would account for only about one quarter of BASF’s global investments, compared with more than one third in the past five years, Kurt Bock wrote in an article he contributed to German daily Frankfurter Allgemeine Zeitung.

Bock criticised the government’s continued policy of promoting the build-up of renewable energies through surcharges on electricity prices.

He called for renewable energies to be "released from the petting zoo of risk-free profits" so that Germany can reduce its energy costs.

Bock was also critical of recent government proposals that would, if realised, extend the surcharges ("EEG Umlage") to energy and electricity industrial firms generate on-site for their own use.

BASF and other Germany-based chemical producers have invested in on-site combined-cycle power units to meet their electricity needs and escape the country's high electricity prices.

By Stefan Baumgarten