Siemens CEO Joe Kaeser is leaning on the company’s financial division as a means of funding new technologies in its energy division.

The $25bn financial services division is being seen as a means of growing the company’s infrastructure and energy projects, as Banks continue to show reluctance to lend, according to Bloomberg.

In particular it is now promoting the energy assets that Siemens bought for $1.3bn from Rolls-Royce Holdings Plc (RR/). The technology has applications in solar and wind plants, an area where SFS helps clients fund investments, unit head Roland Chalons-Browne said.
Siemens sign
“If it’s a renewables project that’s using new or relatively untested equipment, we participate in that with equity or debt,” Chalons-Browne told Bloomberg. “That’s seen as an incremental endorsement of the technology. It raises the level of comfort of third-party investors.”

The installation of the smaller fossil-fuelled turbines acquired from Rolls-Royce in renewables plants is an example of technology whose application is promising but still relatively untested in the eyes of customers, necessitating extra financing support.

They can be deployed in so-called hybrid projects, providing a backup to wind or solar plants by supplying power to the grid when the sun isn’t shining or wind isn’t blowing, Kirk Edelman, the head of energy financing at Siemens Financial Services, said in the same interview last week.

“We’re excited about that because the acquisition of Rolls-Royce gives us some fast-start aero-derivative technology which lends itself very nicely to these hybrid projects,” he said. An increasing number of US developers are considering adding these fast-start combustion turbines to their renewable plants, according to Edelman.