LEG and EGC agree on joint decarbonisation strategy

As part of the five-year decarbonisation agreement, all heating systems operated by EGC since 2010 will be modernised. In the future, the currently installed gas boilers will be supplemented by heat pumps, which will take over the majority of the heat supply. The gas boilers will be retained to cover peak loads. The result is a hybrid, future-proof supply concept that significantly reduces CO₂ emissions and at the same time ensures security of supply. The company is consistently pursuing this strategy despite the recently published key points of the Building Modernization Act (GMG). It is important to both parties not to overburden the tenants financially with the heating costs after the renovation work. Therefore, the LEG is planning extensive construction cost subsidies as support.

"We are currently in the midst of an energy policy upheaval. The Building Modernization Act, which is expected to be passed in the summer, means that individual market participants are currently holding back. However, it remains crucial for us to consistently support our customers on their decarbonization path. In view of rising CO₂ prices, it is important to reduce emissions quickly and effectively so that housing remains affordable in the long term. As part of this partnership, we will reduce CO₂ emissions in LEG's portfolio by around 13,000 tonnes of CO₂ per year."

By expanding their existing partnership, the two cooperation partners want to ensure a sustainable, CO₂-reduced energy supply for the housing stock. The project is an essential component of LEG's climate strategy, which aims to be almost climate-neutral by 2045.

Dr. Volker Wiegel, COO of LEG Immobilien SE, adds: "We are sticking to our comprehensive decarbonization strategy and the CO2 path. We are pleased that EGC is leading the way with us and is now tackling its investments in our portfolios with great momentum. EGC is an experienced and powerful partner that combines technical expertise with operational implementation competence, which we are convinced will also implement this major modernization plan efficiently and quickly. The decarbonisation of around 500 properties that has now been agreed is another important building block and an important step on our way to an almost climate-neutral portfolio by 2045. At the same time, we are ensuring that our tenants will continue to be supplied with reliable and, above all, affordable energy in the future."

EGC pursues a holistic approach: from the detailed analysis of the status quo to the technical design and implementation to the long-term operation of the plants. This means that decarbonisation is not understood as a single measure, but as an integrated transformation process.

After installation of the heat pump systems, EGC takes over the heat supply of the properties as a heat supplier. The total installed capacity of the turbines is expected to be 90 megawatts – sufficient to supply around 16,000 LEG households with heat reliably and in a much more climate-friendly way.

With the expansion of their cooperation, EGC and LEG are sending a strong signal for climate-conscious real estate management and jointly accelerating the sustainable transformation and thus the improvement of the building energy classes of the extensive residential portfolio.