German based manufacturer of luxury cars and motorcycles BMW AG (ETR: BMW) is looking into making new investments in solar, geothermal and hydrogen energy aiming to reduce its dependency on natural gas.
This development was revealed by the company’s managing director and board member Milan Nedeljkovic, on May 23 as he further warned that a ban on Russian gas would bring the automotive industry to its knees.
“Our industry accounts for around 37% of German natural gas consumption. Not just BMW but the entire sector would come to a standstill,” said Nedeljkovic responding to a question on what would happen if there was a ban on Russian gas.
In 2021, BMW relied on natural gas for 54% of its energy consumption. The company says that it’s exploring where it can add solar panels to its factories and developing plans with local authorities to transport hydrogen to its plant in Leipzig, Germany.
“Hydrogen is very well-suited to lower or even fully compensate for gas demand,” added Nedeljkovic. Upon being asked the potential of using nuclear energy, the managing director said nuclear can be a stabilizing factor more so during these volatile times.