Latest news with #HeidelbergMaterialsAG
The Star
2 days ago
- Business
- The Star
German heavy industry stuck with dirty tech
BERLIN: In Geseke, a small town in Germany's western industrial heartland, plans to launch a large-scale carbon capture project at a local cement plant have been put on ice. Operator Heidelberg Materials AG had received European Union (EU) subsidies for the green project that's set to save 700,000 tonnes of carbon emissions annually, and planned to start construction next year. But the company – which last month started capturing and liquefying emissions in Norway – is no longer staking out a timeline for its German project because the conditions for a prompt, final investment decision aren't given. Germany's new conservative-led government has thrown its weight behind carbon capture and storage (CCS), touting it as a pragmatic path to meeting legally-binding climate goals in sectors that are hard to decarbonise. But while Chancellor Friedrich Merz has pledged to fast-track the technology by lifting regulatory barriers, the government's sweeping budget cuts are undercutting the very projects it says it supports. The result is a climate strategy caught between political convenience and fiscal restraint – leaving the country's most emissions-intensive industries facing a rising cost of carbon emissions in the coming years with German industry already struggling to stay in business. Berlin recently revived a draft proposal that was left unfinished by the previous government to legalise CCS. Yet funds for a clean industry programme – which was developed to support everything from hydrogen to carbon capture – are set to be cut to €1.8bil (US$2.1bil) from €24.5bil in the mid-term, according to this year's draft budget law that's currently being discussed in Parliament. While the ruling coalition has promised to stick to the nation's 2045 climate neutrality goal, it's becoming increasingly unclear who will foot the bill. 'If the government deprioritises funding for the decarbonisation of industry, this would be by far the most problematic measure in terms of climate protection,' said Jens Burchardt, co-founder of Boston Consulting Group's Centre for Climate and Sustainability. The nation's manufacturers are already struggling with layers of red tape, high energy prices and a shortage of skilled staff. They will come under additional pressure in the coming years as costs for polluting the environment increase. 'Against this backdrop, withdrawing the financial support companies need to invest in green alternatives at the same time is a recipe for the further deindustrialisation of Germany,' said Burchardt. Swiss building materials specialist Holcim AG, which plans a carbon capture project near Hanover, said the budget cuts have led to uncertainty throughout the industry as to how decarbonisation funding will continue overall. A representative for industry group Carbon Management Alliance said the cuts are a setback for climate targets. The government's key programme to help clean up its heavy industries relies on an auction instrument to bridge the pricing difference between conventional processes and cleaner, more expensive alternatives. While a first auction last October awarded contracts to 15 projects, an economy ministry spokesperson said preparations for a potential second round were 'complex,' though it's technically possible for another to take place this year. One company that could be eligible to participate is Hamburg-based copper recycler Aurubis AG. It installed two hydrogen-ready anode furnaces last year, but with no hydrogen available at competitive prices, it continues to burn natural gas in its state-of-the-art ovens. At an energy conference last month, economy minister Katherina Reiche explained that the expected demand for hydrogen isn't materialising, or is very delayed. Meanwhile, the German budget envisions slashing two-thirds of the funding the previous administration allocated to hydrogen. Of course, the lack of state support isn't the only reason why decarbonisation projects are stuck or failing. For example, when steelmaker ArcelorMittal SA last month announced it would hand back a €1.3bil subsidy for two local green steel units, it pointed to 'unprecedented' market pressure, weak demand, unfavourable European policy and high electricity prices. That's an even bigger problem for the chemical industry in Germany, which is facing factory closures, layoffs and production cuts. 'I can only spend every euro once,' said Martin Naundorf from Infraleuna GmbH, operator of a chemical hub in the country's east. Given the current conditions, 'nobody can afford to invest in technologies where it's unclear when they'll become profitable.' Major industrial competitors, such as China, are investing massively in new technologies to help manufacturers decarbonise, said Julia Metz, director of think tank Agora Industry. 'If Germany wants to keep up, it must not miss the boat and must invest massive amounts of money in new climate protection technologies.' — Bloomberg
Mint
4 days ago
- Business
- Mint
Germany's Budget Cuts Leave Heavy Industry Stuck with Dirty Tech
(Bloomberg) -- In Geseke, a small town in Germany's western industrial heartland, plans to launch a large-scale carbon capture project at a local cement plant have been put on ice. Operator Heidelberg Materials AG had received European Union subsidies for the green project that's set to save 700,000 tons of carbon emissions annually, and planned to start construction next year. But the company — which last month started capturing and liquefying emissions in Norway — is no longer staking out a timeline for its German project because the conditions for a prompt, final investment decision aren't given. Germany's new conservative-led government has thrown its weight behind carbon capture and storage, touting it as a pragmatic path to meeting legally-binding climate goals in sectors that are hard to decarbonize. But while Chancellor Friedrich Merz has pledged to fast-track the technology by lifting regulatory barriers, the government's sweeping budget cuts are undercutting the very projects it says it supports. The result is a climate strategy caught between political convenience and fiscal restraint — leaving the country's most emissions-intensive industries facing a rising cost of carbon emissions in the coming years with German industry already struggling to stay in business. Berlin recently revived a draft proposal that was left unfinished by the previous government to legalize CCS. Yet funds for a clean industry program — which was developed to support everything from hydrogen to carbon capture — are set to be slashed to €1.8 billion ($2.1 billion) from €24.5 billion in the mid-term, according to this year's draft budget law that's currently being discussed in parliament. While the ruling coalition has promised to stick to the nation's 2045 climate neutrality goal, it's becoming increasingly unclear who will foot the bill. 'If the government deprioritizes funding for the decarbonization of industry, this would be by far the most problematic measure in terms of climate protection,' said Jens Burchardt, co-founder of Boston Consulting Group's Center for Climate and Sustainability. The nation's manufacturers are already struggling with layers of red tape, high energy prices and a shortage of skilled staff. They will come under additional pressure in the coming years as costs for polluting the environment increase. 'Against this backdrop, withdrawing the financial support companies need to invest in green alternatives at the same time is a recipe for the further deindustrialization of Germany,' said Burchardt. Swiss building materials specialist Holcim AG, which plans a carbon capture project near Hanover, said the budget cuts have led to uncertainty throughout the industry as to how decarbonization funding will continue overall. A representative for industry group Carbon Management Alliance said the cuts are a setback for climate targets. The government's key program to help clean up its heavy industries relies on an auction instrument to bridge the pricing difference between conventional processes and cleaner, more expensive alternatives. While a first auction last October awarded contracts to 15 projects, an economy ministry spokesperson said preparations for a potential second round were 'complex,' though it's technically possible for another to take place this year. One company that could be eligible to participate is Hamburg-based copper recycler Aurubis AG. It installed two hydrogen-ready anode furnaces last year, but with no hydrogen available at competitive prices, it continues to burn natural gas in its state-of-the-art ovens. At an energy conference last month, economy minister Katherina Reiche explained that the expected demand for hydrogen isn't materializing, or is very delayed. Meanwhile, the German budget envisions slashing two-thirds of the funding the previous administration allocated to hydrogen. Of course, the lack of state support isn't the only reason why decarbonization projects are stuck or failing. For example, when steelmaker ArcelorMittal SA last month announced it would hand back a €1.3 billion subsidy for two local green steel units, it pointed to 'unprecedented' market pressure, weak demand, unfavorable European policy and high electricity prices. That's an even bigger problem for the chemical industry in Germany which is facing factory closures, layoffs and production cuts. 'I can only spend every euro once,' said Martin Naundorf from Infraleuna GmbH, operator of a chemical hub in the country's east. Given the current conditions, 'nobody can afford to invest in technologies where it's unclear when they'll become profitable.' However, the state could also change its procurement strategy to help climate technologies reach market maturity, a measure the coalition already agreed upon. Steelmaker Stahl-Holding-Saar GmbH is one company that would benefit from that approach. It says it's the only European rolling mill to offer CO2-reduced rails, for which the steel was produced with electricity instead of coal. The firm already concluded supply contracts with France's SNCF Réseau, Belgium's Infrabel and Swiss Railways, but hasn't received interest from any Germany customer, according to Chief Transformation Officer Jonathan Weber. Major industrial competitors, such as China, are investing massively in new technologies to help manufacturers decarbonize, said Julia Metz, director of think tank Agora Industry. 'If Germany wants to keep up, it must not miss the boat and must invest massive amounts of money in new climate protection technologies.' More stories like this are available on
Bloomberg
4 days ago
- Business
- Bloomberg
Germany's Budget Cuts Leave Heavy Industry Stuck with Dirty Tech
In Geseke, a small town in Germany's western industrial heartland, plans to launch a large-scale carbon capture project at a local cement plant have been put on ice. Operator Heidelberg Materials AG had received European Union subsidies for the green project that's set to save 700,000 tons of carbon emissions annually, and planned to start construction next year. But the company — which last month started capturing and liquefying emissions in Norway — is no longer staking out a timeline for its German project because the conditions for a prompt, final investment decision aren't given.
Yahoo
11-05-2025
- Business
- Yahoo
Why You Might Be Interested In Heidelberg Materials AG (ETR:HEI) For Its Upcoming Dividend
Heidelberg Materials AG (ETR:HEI) stock is about to trade ex-dividend in 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Heidelberg Materials' shares before the 16th of May in order to receive the dividend, which the company will pay on the 20th of May. The company's next dividend payment will be €3.30 per share, and in the last 12 months, the company paid a total of €3.00 per share. Based on the last year's worth of payments, Heidelberg Materials has a trailing yield of 1.6% on the current stock price of €185.00. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Heidelberg Materials paid out a comfortable 31% of its profit last year. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 30% of its free cash flow as dividends, a comfortable payout level for most companies. It's positive to see that Heidelberg Materials's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Heidelberg Materials Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Heidelberg Materials's earnings per share have risen 12% per annum over the last five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, Heidelberg Materials has lifted its dividend by approximately 15% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years. Should investors buy Heidelberg Materials for the upcoming dividend? It's great that Heidelberg Materials is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. It's disappointing to see the dividend has been cut at least once in the past, but as things stand now, the low payout ratio suggests a conservative approach to dividends, which we like. There's a lot to like about Heidelberg Materials, and we would prioritise taking a closer look at it. On that note, you'll want to research what risks Heidelberg Materials is facing. To help with this, we've discovered 1 warning sign for Heidelberg Materials that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
