LEAG Transitions to Emphasize Renewable Energy Strategy

• LEAG pivots to green energy with new subsidiaries, championing wind, solar, and clean power innovations, while preserving coal’s legacy for sustainable post-mining restoration.

German energy firm LEAG is restructuring to transition from coal to renewable energy, emphasizing its commitment to green initiatives. The supervisory boards approved a new corporate framework that includes creating three independent subsidiaries under LEAG Gigawatt GmbH: LEAG Renewables GmbH, LEAG Clean Power GmbH, and LEAG Biomass GmbH.

LEAG Renewables will focus on wind and photovoltaic installations, while LEAG Clean Power targets battery storage, hydrogen projects, and innovative energy solutions. Additionally, LEAG Biomass will manage wood pellet production. The existing units for coal mining and power generation will continue under Lausitz Energie Verwaltungs GmbH, ensuring ongoing funding for post-mining restoration efforts.

How is LEAG restructuring to enhance its renewable energy initiatives?

• Strategic Realignment: LEAG is restructuring its operational framework to facilitate a more focused approach on renewable energy by establishing three distinct subsidiaries, which allows for specialization in various green energy domains.
• LEAG Renewables GmbH: This subsidiary will primarily concentrate on the development and implementation of wind and solar energy projects. Its mission includes scaling up the capacity and efficiency of photovoltaic systems and onshore/offshore wind farms.
• LEAG Clean Power GmbH: Dedicated to advancing energy storage solutions and hydrogen technologies, this entity aims to explore innovative ways to stabilize energy supply from intermittent renewable sources, ensuring reliability in energy delivery.
• LEAG Biomass GmbH: This division will oversee the production and use of wood pellets as a renewable energy source, focusing on sustainable sourcing practices and enhancing biomass's role within the company's overall energy portfolio.
• Focus on Innovation: Each subsidiary will actively pursue research and development initiatives to explore new technologies and methods that enhance the efficiency and sustainability of renewable energy production.
• Financial Sustainability: By keeping coal-related operations under Lausitz Energie Verwaltungs GmbH, LEAG aims to secure the financial resources necessary for significant post-mining restoration projects, ensuring the ecological health of former mining sites.
• Community Engagement: As part of its restructuring, LEAG intends to improve its engagement with local communities, seeking their support for transition efforts and ensuring that stakeholders' interests are considered during the shift away from coal.
• Workforce Transition: The restructuring plan includes strategies for retraining and upskilling existing employees to facilitate a smooth transition from traditional energy roles to new positions in the renewable energy sector.
• Sustainability Goals: LEAG is setting ambitious sustainability targets, aligning its operations with Germany’s national energy goals and the broader European Union objectives for carbon reduction and climate resilience.
• Partnerships and Collaborations: To accelerate its transition, LEAG is exploring potential partnerships with technology firms, research institutions, and other energy companies to foster innovation and share best practices in renewable energy development.
• Regulatory Compliance: The restructuring is also focused on meeting both national and international guidelines on emissions reductions, ensuring that LEAG advances its renewable initiatives within the regulatory frameworks governing energy transition in Germany and Europe.