H&R receives funding approval for climate protection project to reduce CO₂ at Salzbergen site

Press Release

H&R receives funding approval for climate protection project to reduce CO₂ at Salzbergen site

• BMWK funds H&R project for CO₂ reduction at a process furnace in Salzbergen
• Funding includes both investment and operating costs for a power-to-heat project

Salzbergen, Germany, October 16, 2024. H&R Chemisch-Pharmazeutische Spezialitäten GmbH, subsidiary of the H&R GmbH & Co. KGaA, announces that the Federal Ministry of Economics and Climate Protection (BMWK)* has approved the project application for the construction and operation of a process furnace at the Salzbergen site using electrical energy. The project will receive considerable financial support as part of a climate protection agreement (Klimaschutzvertrag - KSV). The official funding commitment was made on 15.10.2024 in Berlin.

This project is a significant step towards reducing CO₂ emissions and a crucial part of H&R's “CO₂ Reduction Roadmap”. “We are proud of this success and would like to thank everyone involved in developing the concept. Our efforts have now been crowned with success,” explains Dr. Thomas Röthel, Chief Commercial Officer.

As part of the climate protection agreement, H&R will implement the power-to-heat process in Salzbergen over the next few years, which will reduce the use of natural gas for heat generation. The project will be supported with funding of up to 116 million euros, which will primarily be invested in the electricity infrastructure at the Salzbergen site and the electric process furnace. For every tonne of CO₂ saved, the company will receive a defined payment for a period of 15 years.

“The switch to electric operation is another step towards a more sustainable and climate-friendly future for our company and the entire industry. The funding from the climate protection agreement enables us to achieve a significant reduction in CO₂ emissions and at the same time offset a potential competitive disadvantage,” says Detlev Wösten, Chief Sustainability Officer.

*On March 11, 2024, the Federal Ministry of Economics and Climate Protection (“BMWK”) issued the guideline for the promotion of climate-neutral production processes in industry through climate protection contracts (Promotion Guideline for Climate Protection Contracts (“FRL KSV”)), which was approved by the European Commission under state aid law on February 16, 2024. The FRL KSV is intended to support companies from emission-intensive industries, as the switch from conventional production processes to more climate-friendly production processes is associated with considerable additional costs for these companies.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

The H&R GmbH & Co. KGaA:
H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures chemical and pharmaceutical specialty products based on fossil, biomass, synthesized and recycled hydrocarbons and produces high-precision plastic parts.

Forward-looking statements and forecasts:
This press release contains forward-looking statements. The statements are based on the current estimates and forecasts by the Executive Board and the information available to the Board at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this press release.