In an interview, Evonik CEO Christian Kullmann estimated the cost of the energy transition at around one trillion euros and disputed the benefits achieved so far. Citing a lack of gas-fired power plants, weak grid infrastructure, and the high cost of hydrogen, he is calling for coal-fired power plants in North Rhine-Westphalia to remain in operation until at least 2033. He also advocates pushing back Germany’s climate target from 2045 to 2050. This warning comes as the chemical industry grapples with high operating costs and Evonik cuts another 3,200 jobs, including 2,150 in Germany.
Energy transition costs meet an unresolved supply gap
Kullmann considers the 2030 phase-out of lignite in North Rhine-Westphalia unfeasible. “We don’t have enough gas-fired power plants. We have a grid infrastructure like Albania’s, and there is no affordable hydrogen.” Consequently, he expects coal-fired power plants to continue operating until at least 2033, and possibly beyond.
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The Bundestag has since paved the way for the construction of new reserve power plants. The federal government plans to tender nine gigawatts of capacity as early as 2026, with another two gigawatts to follow in 2027. These facilities are intended to provide backup during periods of low wind and solar output—known as Dunkelflauten—though their construction will take several years. At the same time, the government must decide on a reserve arrangement for three modern lignite-fired power plant units that is to remain in place until the end of 2033.
Trillion-euro figure lacks detailed breakdown
The cited costs for the energy transition are based on Kullmann’s own overall estimate; however, he did not present a detailed calculation. Consequently, it remains unclear which grids, subsidies, power plants, or consequential costs are included in the total. His statement—“And what has it brought us? Nothing.”—therefore reflects his political assessment.
Kullmann also advocates delaying the target for climate neutrality until 2050. He argues that Germany is responsible for only 1.6 percent of global CO₂ emissions. Furthermore, he opposes stricter regulations within the European emissions trading system. He criticizes past policy with the remark: “The deference to Greta in Berlin and Brussels was excessive.” However, he distances himself from the AfD, arguing that the party’s anti-European stance harms the German economy.
Evonik to Cut Another 3,200 Jobs
Evonik plans to eliminate approximately 3,200 jobs between 2027 and 2029. Of these, 2,150 cuts will take place in Germany; additionally, a reduction of 2,800 jobs is already underway, scheduled for completion by the end of 2026. The company cites weak growth, international competition, and structural disadvantages in Europe as reasons. Nevertheless, the job cuts are intended to be carried out in a socially responsible manner.
However, current financial figures present a mixed picture. Evonik expects an adjusted EBITDA of between €600 million and €650 million for the second quarter. Supply bottlenecks affecting Asian competitors and cost-cutting measures are bolstering earnings, though this advantage is likely to diminish. Consequently, Kullmann links the costs associated with the energy transition to concerns regarding investment, production, and jobs in Germany. By his own account, the reforms implemented to date by the conservative-social democratic coalition government are insufficient.
Author: Blackout News
Sources: Welt (22.07.26) – Nius (20.07.26) – Welt (17.07.26) – Deutscher Bundestag (08.07.26) – Evonik (26.06.26)