Berlin to Bail Out Shipyard for Offshore Wind Energy

German Chancellor Olaf Scholz announced significant progress in negotiations to provide credit lines and purchase shares worth €2.8 billion for Meyer, a struggling shipmaker crucial to the country’s offshore wind energy ambitions. During his visit to the shipyard on August 22, Scholz emphasized the importance of Meyer Werft, describing it as an "industrial crown jewel for Germany." The government’s intervention comes as Germany aims to ramp up its offshore wind capacity from just under nine gigawatts to 30 gigawatts by 2030. The proposed bailout is designed to address a €2.8 billion shortfall in Meyer’s finances, exacerbated by rising production costs. Reports suggest that both the federal government and the state of Lower Saxony, where the shipyard is located, may invest up to €500 million each in company shares while also guaranteeing €1.8 billion in loans. Scholz acknowledged that while discussions have advanced, challenges remain, particularly in securing approval from the European Commission. The bailout is seen as a critical step for Germany’s offshore wind sector, which has faced delays in connecting wind parks to the grid due to a shortage of converter platforms. Meyer is contracted to construct four converter platforms, each capable of transferring at least 900 megawatts of power to the mainland, marking a significant development in the country’s renewable energy infrastructure. This move follows a trend of government support for companies struggling to secure credit, as seen in November 2023 when the German government bailed out Siemens Energy due to financial instability linked to quality issues with its wind turbines.