Germany’s Next e.GO prepares for electric car plant in Greece

Up-and-coming electric car maker Next e.GO, a German firm recently transferred to Dutch investment group ND Industrial BV, will today present its plan for the development of a production facility in Greece, an investment believed to be worth approximately 100 million euros.

The company’s decision was reached some time ago as a result of Greece’s improved business image abroad, positive market-research results, abundance of low-cost computer programmers and engineers, and, most crucially, the country’s ambitious economic restructuring plan, an initiative to be supported by 32 billion euros stemming from the EU recovery fund.

Talks began several months ago between Greek government and Next e.GO officials, who have already inspected a number of potential sites that could host the company’s investment plan.

Next e.GO, specializing in small, versatile, low-cost vehicles ideal for city use, is looking to set up its venture on a large expanse with access to key roads, railway infrastructure and within close proximity to the airport.

Further details on the investment, including its precise value, the prospective facility’s production capacity, development and launch schedule, as well as the degree to which Next e.GO sees Greece as a base for exports to neighboring countries, are expected to be disclosed at the presentation today.

The presentation will be preceded by the signing of a Memorandum of Understanding between Enterprise Greece, the Greek state’s official agency designed to promote the country’s investment opportunities, and Next e.GO CEO Ulrich Hermann, in the presence of Greek Prime Minister Kyriakos Mitsotakis and other key government members.

The car manufacturer’s flagship model, the e.GO Life, a 1.2-ton vehicle equipped with a 21.5-KW battery and 57-kW engine that was launched in 2018 at a retail price of under 16,000 euros, comes in variations, including the e.GO Life Sport and e.GO Life Cross models. Its distance range reaches 203 km in cities and 139 km on highways.

Other foreign firms considering the Greek market amid growing electromobility interest include the US firms Tesla and Blink, Swedish-Swiss multinational ABB, France’s Engie, as well as smaller producers.

Hybrid car sale forecasts in Greece have exceeded expectations this year, reaching 40 percent of total sales, well over a 20 percent target.

Cross-industry climate change effort emphasized by CEO Alliance

The CEO of multinational power company Enel, Francesco Starace,  and chief executives from eleven European companies, have joined forces for a zero-carbon future and a more resilient Europe, Enel has announced in a statement.

The European Union is committed to net zero emissions by 2050, which is in line with the CEO Alliance companies’ own decarbonization strategies, the statement noted.

All members support the Paris 2050 goals, the EU Green Deal and the ambition to raise EU climate targets. They represent different industries, generate a combined 600 billion euros in annual revenues and employ 1.7 million people. The CEO Alliance channels their decarbonization efforts: it connects sectors and strategies, identifies potential for collaboration, and fosters projects and investments for a sustainable economy and society.

At its inaugural meeting in Stuttgart, the cross-industry alliance underscored: “The climate targets of the European Union are feasible. Our industries do not block, but rather foster the shift toward a carbon-neutral economy. We see growth potential for all industries in the long run. If we manage this historic transformation successfully, sustainable development and new future-proof jobs will be the result. Together, we will support all efforts to reach a social consensus for more sustainability.”

With yesterday’s start, the CEO Alliance becomes an association of action that unites corporate strategies, industries and societies on the road to a carbon-neutral Europe.

All members believe the new climate targets of the European Commission, envisaging emission reductions of 55% by 2030, are manageable.

On the industry side, the CEO Alliance members have already pledged to invest more than 100 billion euros in their respective decarbonization roadmaps over the next years to help reach these targets.

Every member has defined its own strategy to address decarbonization, by reducing carbon emissions across the relevant value chains and by offering sustainable products and services to customers. For reaching the respective CO2 targets, each member and each sector is dependent on other members and sectors, which especially calls for cross-sector activities.

Collaboration potential of the Alliance was identified in six fields: in energy systems, renewable power generation must be scaled up rapidly and power grids must be modernized. In terms of mobility and transport, the EV charging infrastructure must be expanded and the low-carbon transport or shipping of goods intensified. Zero-impact production – in particular for renewable power generation components – and sustainable battery production are key aspects in manufacturing and industrial processes. In terms of buildings and urban environments, the focus is on zero-emission offices and sustainable green city planning. In regard to new business models, the focus is on carbon tracking with digital technologies in the supply chain. The field of sustainable finance will also offer new opportunities.

The members also agree that the transformation towards a net-zero carbon future needs to be based on a broad public consensus. The CEO Alliance is willing to contribute to this consensus, and to establish a social contract, by intensifying the dialogue between stakeholders from the private sector, public sector and civil society. At the same time, the members call on political leaders to create the necessary political support and incentives. At the inaugural meeting, the dialogue started with a discussion with Frans Timmermans, Executive Vice President of the European Commission.

The CEO Alliance is convinced that ambitious decarbonization and cross-sector collaboration require ambitious and cross-sector policy frameworks, for example carbon pricing with a minimum floor price in the EU Emissions Trading System, a reform of the energy taxation system, and driving demand for sustainable, innovative and digital solutions, among other things by using renewal schemes, public procurement and investments.

The CEO Alliance represents members from key industry sectors: ABB, AkzoNobel, Eon, Enel, Iberdrola, A.P. Møller Maersk, Philips, SAP, Scania, Schneider Electric, Siemens and Volkswagen.

Following an initial joint letter to the European Commission in June 2020, the first face-to-face meeting underscored the commitment to act fast and to recognize the urgency of the necessary transformation for future competitiveness.

One of three Crete link bidding teams wants time or will exit

ABB, the world’s biggest developer of power grid interconnection projects, has requested a further deadline extension greater than the one-month periods of additional time already granted twice for a tender concerning the Crete-Athens grid interconnection project’s engineering, procurement and construction of two converter stations and a GIS substation, energypress sources have informed. The tender’s current deadline is set to expire on October 31.

Both the Greek government and power grid operator IPTO appear determined not to accept any further deadline extension requests as this, they believe, would increase the risk of a project delay and, consequently, energy sufficiency issues on Crete.

Outdated, high-polluting power stations still operating on Crete soon need to be withdrawn.

ABB, which has joined forces with Greek maritime infrastructure construction and maintenance group Archirodon for the Cretan project’s tender, has cited the complexity of the project for the additional time the company appears to need. If a sizable extension is not granted, then ABB and project partner Archirodon will most likely withdraw from the tender, it is believed.

On the contrary, two other partnerships established for the tender, according to reliable sources, are preparing to submit their offers. Siemens is believed to have joined forces with Greek construction company TERNA and General Electric is working with Greece’s Mytilineos, according to sources.

The grid interconnection project’s development faces a tight schedule. IPTO chief executive Manos Manousakis told a recent conference the project will be launched early 2023, not at the end of 2022, as was previously believed.