WEBVTT

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At Piesteritz nitrogen plants,
basic chemicals like nitric acid and

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ammonia are produced mainly for
fertilizers but also for explosives.

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For this managing director Carsten
Franzke needs a lot of electricity

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and even more gas.

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Natural gas makes up to 80% of
nitrogen production costs, with

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electricity adding another 7%.

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In January, Franzke had to shut down
one of his two ammonia plants because

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competitors in China,
Russia and other countries.

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Pay much less for energy
and can produce more cheaply.

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In Russia for instance, gas prices
are below €5 per MW hour and here we

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pay €34 per MW hour.

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At some point you reach a point
where you save for self protection.

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Rather than going bankrupt due
to non sales, I will take the more

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economically sensible route
and limit losses.

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According to  Franzke, most 
energy-intensive companies in Germany face

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similar challenges with high energy
prices, grid charges, gas storage

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levies and additional
taxes costs that international

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competitors don't have.

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Franzke can notes that the new
German federal government's focus on

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industrial electricity prices
shows awareness of the problem.

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However, for many
chemical companies still works.

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It's already almost too late.
In two months, he says,

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energy intensive industries would
need better economic conditions.

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Anything that takes longer threatens
our very existence and we're truly at

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risk of relocation or even shutdown,
so we must act immediately.

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That's my message to
the federal government.

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Piesteritz Nitrogen Works, located in
eastern Germany's, Saxony-Anhalt,

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with 860 employees, is one
of the most important employers

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in the region.

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Its significance extends
far beyond that.

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Without its production, Germany would
be dependent on imports, for example,

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from China or Russia.

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Then we depend on goodwill
just to get the products we need.

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And we're talking about products like
fertilizers, which means food, for

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example, we produce AdBlue;

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Every product in Germany is delivered
by a truck that runs on AdBlue.

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That means no more goods would
be transported through Germany.

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Shelves would be empty.

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And even in defense, energy-intensive
industries play a crucial role.

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Without steel production, there
are no tanks or weapons, and without

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nitric acid like the
one produced at Piesteritz, there would

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be no ammunition.