BMW uses solar, geothermal and hydrogen energy to power its plants

BMW is exploring new investments in solar, geothermal and hydrogen energy to reduce its reliance on natural gas, production chief Milan Nedelkovic told Reuters, warning that an embargo on Russian gas would bring the industry to a standstill.

BMW, which will consume 54% of its energy from natural gas in 2021, is looking at options for adding solar panels to its plants and working with local authorities on plans to deliver hydrogen to its Leipzig plant in Germany.

Nedeljkovic said:- "Hydrogen is ideally suited to reduce or even completely compensate for natural gas demand." "Our industry accounts for around 37% of German gas consumption," he said when asked what would happen to BMW's plants if Russia stopped supplying gas.

"Not only BMW, but the whole industry would come to a standstill," Nedelkovich said. BMW's plan reflects the wider preparations being made across the German industry to move away from dependence on Russian gas and to develop a system to ration existing supplies in the event of a sudden disruption in supply.

Outside of Germany, BMW's new plant in Debrecen, Hungary, will rely heavily on solar energy, Nedelkjovic said, adding that BMW is also considering the use of geothermal energy. BMW has said that the plant would be the first car plant in the world to be completely free of fossil fuels. Geothermal power is more stable than weather-dependent renewables, but has not seen as much growth or investment as wind or solar power due to high upfront costs and a complex drilling permitting process.

Asked about the potential of nuclear energy, Nedeljkovic said: "Nuclear energy can be a stabilising factor, especially in turbulent times. Nuclear energy accounts for about half of Hungary's energy supply, but it is being phased out in Germany." Our own production depends on renewable energy."