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German energy group RWE is set to invest billions in sustainable energy projects in the US. It is one of the largest green deals ever in the United States. But there is also criticism. An interested investor who bought into RWE would like to see the energy company invest in the domestic energy sector.
AP
October 3, 2022
With the deal, worth approximately 6.8 billion dollars (almost 7 billion euros), RWE will double its energy portfolio in the United States to more than 7 gigawatts. The transaction is made possible in part by Qatar’s investment fund, which will become RWE’s major shareholder with an investment of more than 2 billion euros. Qatar and Germany signed an agreement in May to intensify their energy cooperation.
But investor Benedict Cormier of Encroft Capital, which owns about a million shares in RWE, is critical of the deal. According to him, RWE’s focus should be on the German energy sector. “It is completely incomprehensible how Germany’s biggest energy company could spend 7 billion euros on a deal in the US amid the biggest energy crisis Germany has ever seen,” Kormaier said.
RWE has benefited greatly from the turmoil in the European energy market as a result of the war in Ukraine. The company also has power plants in the Netherlands.