KfW IPEX-Bank has announced its participation in a significant financing initiative for BEW Berliner Energie und Wärme GmbH. The bank is contributing EUR 100 million as part of a larger EUR 1 billion financing package provided by eight banks to support the company's capital needs through March 2027. This funding aims to facilitate the long-term transition of Berlin's heating system towards climate neutrality.
BEW, known for operating Western Europe's largest district heating network and serving as Berlin's primary heating supplier, has secured this financing following its acquisition from Vattenfall by the state of Berlin. Axel Pinkert, CFO at BEW, stated, "We are thus setting the course for a financially secure heating transition in Berlin at an early stage. We are in a solid financial position to consistently drive forward the transformation of our energy generation and make Berlin's heating supply climate-neutral."
The company plans to eliminate coal use by 2030 and shift towards alternative energy sources such as industrial waste heat, natural gas, power-to-heat technologies, large heat pumps, biomass, and heat storage solutions. Full decarbonization is targeted by 2045 with increased reliance on hydrogen and geothermal energy.
Dr Velibor Marjanovic from KfW IPEX-Bank expressed satisfaction with supporting BEW's initiatives: “We are very pleased to support our new customer BEW in implementing the heating transition in Berlin and to accompany it on its path to decarbonization,” he said. “With this financing, we are once again underlining our commitment to supporting transformation projects on the path to a sustainable and climate-friendly society.”
BEW Berliner Energie und Wärme GmbH has over 140 years of history in providing reliable and sustainable energy solutions. It serves around one-third of Berlin’s apartments with district heating and hot water while also supplying other buildings like schools and museums.
KfW IPEX-Bank specializes in project and export finance within KfW Group. It supports German and European companies by structuring medium- and long-term financings for exports, infrastructure investments, raw material supply security, environmental projects worldwide while promoting future technologies essential for societal sustainability.