EPH supports its transformation efforts with refined decarbonization commitments
10. 5. 2024
Over the past few years, Energetický a průmyslový holding, a.s. (“EPH”) has demonstrated its transformation efforts through coal assets closures, development of hydrogen-ready gas power plants or building a pipeline of renewable projects to be developed on former mining sites in Germany. These efforts are supported by a transition plan ensuring that each asset has a phase-out plan or a clearly defined role in the net zero energy system. EPH now recognized the need to support these efforts with decarbonization commitments benchmarked against science-based methodologies.
EPH uses the pathways of the ‘Transition Pathway Initiative’[1] (“TPI”) as a science-based benchmark to set the following medium-term and long-term targets:
- Phase out coal by 2030, while striving to accelerate the full exit earlier.
- Decrease the CO2 emission intensity of the European power generation fleet in accordance with the ‘Below 2 Degrees’ pathway of the TPI by 2033.
- Achieve net zero operations by 2050.
In 2023, EPH continued to reduce its carbon footprint with the closure of Kilroot hard coal plant in Northern Ireland and overall reduction in power generation from coal. In Slovakia, the lignite power plant Nováky ceased operation in December 2023 and the hard coal power plant Vojany was closed in March 2024[2]. In March 2024, EPH decommissioned Mehrum hard coal power plant in Germany. Beyond 2025, coal exposure of EPH will be limited to the Fiume Santo power plant under a must-run regime on Sardinia and district heating plants in the Czech Republic providing vital heat supplies to major regional cities. There will be no coal mining activities at EPH beyond 2025.
EPH directs a substantial portion of its Capex towards activities eligible under the EU Taxonomy. In 2023, 72% of Capex was invested in eligible activities such as development of hydrogen-ready gas power plants, upgrade of the gas distribution network with hydrogen-ready pipes or reinforcing the power distribution grid to handle higher share of intermittent renewable sources. Capex related to coal assets was limited to necessary maintenance to ensure safe, reliable, and environmentally sound operations before the assets are finally decommissioned.
“The transition plan and emission reduction pathway of EPH are ambitious but at the same time credible. Along with the recently established green finance framework, EPH further enhances its accountability towards all stakeholders”
says Petr Choutka, Sustainability Manager of EPH.
Further details on the EPH decarbonization commitments and ESG performance are available in the EPH Sustainability Report for the year 2023.