Originally known as a trader on the gas market, Swiss MET Group now wants to increase its profitability with green electricity from its own plants. Christian Hürlimann, Renewables CEO of MET Group, explains in an interview with EID how the company, which was once spun off from the Hungarian oil company MOL, is making itself fit for the future with renewable energies and green hydrogen.
EID: Mr. Hürlimann, MET Group is one of the biggest gas traders in Europe and sees itself as one of the fastest growing European energy companies. You were brought in two years ago as an industry expert to make MET’s portfolio greener. Why this change of direction by the management?
Hürlimann: Gas and power generation are essentially closely related. Since gas for electricity generation is only accepted in many countries for a transitional period, the move to renewable energies almost imposes itself. As a trader, you live primarily on options and are fully dependent on volatile price developments. With your own green assets, the world looks different: MET Group has the opportunity for asset-backed trading, i.e. we can also market the electricity from our own plants. This creates more opportunities and ultimately increases profitability. We must not forget the guarantees of origin that result from having one's own eco-power plants, and which can also be traded. In a nutshell: with your own power plants, you as a trader have an even wider scope of action.
EID: MET has announced its intention to have a green portfolio of around 2,000 MW by 2026. Which energy sources are you concentrating on and which focus countries do you have in mind?
Hürlimann: We are focusing explicitly on solar energy and onshore wind energy. In photovoltaics, large ground-mounted systems are at the top of the agenda. All projects are being developed in such a way that in future electricity production can also be combined with "on-site" battery storage – as soon as it is economically viable and technically possible. This enables us to market the electricity we generate more flexibly. We are primarily pushing ahead with our investments in Germany, Italy, Spain, Poland and Romania.
EID: Why does offshore wind energy not play a role in your plans?
Hürlimann: We want to retain control of our green assets where at all possible. This aspiration is not realistic for offshore wind energy in view of the large investment volume, which runs into billions. Nevertheless, I would not completely rule out MET Group's involvement in offshore wind energy.
EID: Does MET develop the wind and solar parks itself or do you buy the projects?
Hürlimann: We have our own project development team in our hub in Hungary. In our second hub of the Green Assets Division in Milan, we are currently expanding our project acquisition and development activities in Western Europe. In addition, we also work closely with local and international project developers.
EID: How far have you got with expanding your green assets so far?
Hürlimann: Our portfolio so far comprises around 400 MW in operation and under construction. Further projects with around 550 MW are under development, which will predominantly go into operation in the coming year. We are optimistic that we will be able to achieve the remaining 1000 MW by our 2026 target.
EID: When are the first green projects planned and expected in Germany, the largest market for renewable energies in Europe?
Hürlimann: Germany is and remains the largest energy market in Europe. That is why we have to be present in this marketplace with our green assets, especially since Germany is also home to a number of project developers who are active throughout Europe. I expect that we will soon be able to announce our first photovoltaic project in Germany. In addition, we know of a steadily growing interest in green electricity, especially from industrial circles. Of the portfolio of 2,000 MW of green assets by 2026 that I mentioned, I would like to place around 200 MW in Germany. I would have absolutely nothing against it if this were to be more.
EID: As a rule, MET Group will probably not sell the green electricity it generates via power exchanges, but directly via PPAs or similar direct sales channels. What do your “sales plans" look like?
Hürlimann: Our sales department is active in 14 European countries. We can thus react flexibly and openly to all customer wishes. We will do exactly the same with the green electricity we generate.
EID: As an energy trader, MET must also be interested in green hydrogen. Have you already received requests from companies that want to be supplied by you?
Hürlimann: There is considerable interest on the part of industry, but there are still many unanswered questions and the prices for the purchase of hydrogen are still very high. Ultimately, the whole topic is uncharted territory, as there is no established product world and no trading logic yet. However, my colleagues in the sales department are working on moving things forward with other stakeholders involved.