Power station owner in £29bn state bailout

Global energy giant Uniper is set to be bailed out by the German government to the tune of £29bn and effectively nationalised following reports it could face insolvency.

The company’s UK assets are seven power stations – including at Connah’s Quay, Flintshire – a fast-cycle gas storage facility at Holford, near Middlewich, and two high pressure gas pipelines.

Uniper posted a £10bn loss in August due in part to the fallout from the ongoing conflict in Ukraine. At the time, the firm said its catastrophic performance had been driven by a significant reduction in Russian gas deliveries.

Since then, multiple reports have suggested the Düsseldorf-based company is on the brink of collapse – a suggestion confirmed by the firm itself in recent dispatches.

However, in a statement Uniper said it had concluded a framework agreement with the federal government which will form the basis of the “state stabilisation” of the company.

“With the signing of the framework agreement, another important milestone for the stabilization of Uniper has been reached,” said Uniper CEO Klaus-Dieter Maubach.

“We expect the EU Commission’s approval under state aid law in the coming days. By stabilizing the company, the Federal Government recognizes the central role that Uniper plays for the security of supply in Germany and Europe. Together with the Federal Government, Uniper will contribute to the sustainable development of our energy system.”

Pending the approval of shareholders and the EU Commission, the agreement will see Uniper receive a capital increase of €8bn and authorised capital of €25bn.

The Federal Ministry of Finance will take responsibility for the firm’s shareholding.