BMW confirmed plans to consider new investments in solar, geothermal and hydrogen energy in an effort to reduce its reliance on natural gas, Reuters reported.
"Hydrogen is very well-suited to lower or even fully compensate for gas demand," Milan Nedeljkovic said. "Industry accounts for around 37% of German natural gas consumption."
BMW reported that natural gas made up 54% of its energy consumption in 2021.
With solar panel addition projects in the works and plans to work alongside local authorities to transport hydrogen to its plant based in Leipzig, Germany, the carmaker is currently working on transitioning away from Russian gas and into a system that benefits from available supplies as it prepares for potential delays in delivery.
According to a recent Reuters report, the carmaker's production chief warns that a Russian gas embargo could potentially bring the industry to a halt.
“Beyond Germany, a new plant in Debrecen, Hungary, which BMW has said will be the world's first auto factory to run entirely without fossil fuels, will rely heavily on solar,” Nedelkjovic said.
Approximately half of Hungary’s nuclear energy surprise is currently being phased out in Germany.
"Nuclear energy can be a stabilizing factor, particularly in these volatile times,” Nedeljkovic said. “For our own production we rely on regenerative energy sources."
According to the representative, the company is also examining the benefits of using geothermal power.
“Geothermal power is more stable than weather-dependent renewables but has not seen growth or investment comparable to wind or solar partly due to high upfront costs and complex licensing processes for drilling,” Nedeljkovic said.