Linz Electric SpA has acquired a 60% stake in KWG. (Image source: Linz electric)

Linz Electric SpA has acquired a 60% stake in KW Generator GmbH (KWG), marking a significant milestone in their nearly two-decade-long partnership.

The move brings together two respected European manufacturers and blends Italian innovation with German engineering to address evolving global energy challenges.

The two companies offer highly complementary alternator product lines, and this strategic alliance results in one of the world’s most complete portfolios for power generation.

Their combined capabilities span a wide range of applications, from traditional generator sets to solutions supporting the energy transition, including mobile refrigeration, earthmoving machinery, and other equipment requiring continuous, reliable and flexible power.

New opportunities

With energy reliability and system resilience gaining renewed global importance, the strengthened partnership allows Linz Electric and KWG to pool expertise, resources and vision to deliver tangible solutions worldwide.

KWG brings advanced technologies and long-standing relationships with OEMs in sectors such as material handling, heavy-duty equipment, and extreme operating environments.

Linz Electric, part of the Pedrollo Group, contributes a well-established international distribution network and a direct presence in the US, opening up fresh opportunities and customer segments for KWG.

The acquisition reinforces Linz Electric’s position as a key player in a rapidly changing energy landscape, where innovation and strategic collaboration are central to long-term growth and competitiveness.

This partnership also strengthens the Pedrollo Group’s energy business. With annual revenues of US$540mn (€500mn), the group is increasingly recognised not only in water management and applied technologies but also as an influential force in the energy transition.

Giulio Pedrollo, CEO of the Pedrollo Group and founder of Linz Electric, said, "After years of collaboration, I am excited about the opportunities this transaction offers: the partnership between Linz Electric and KWG is a clear example of how international cooperation between companies that share values, vision and expertise can generate new opportunities for growth and development. Together, we are ready to face the great challenges of global energy transformation. We will continue to invest with determination in innovation, quality and customer service, while keeping our production roots firmly anchored in our home territories. For us, this project represents a concrete testimony to the value of European manufacturing excellence, capable of competing and innovating on an international scale."

Michael Werner, CEO and shareholder of KWG, added, "With Linz as our majority partner, we are confident in our ability to address the competitive landscape and capitalize on new growth opportunities. This partnership demonstrates our commitment to providing superior products and services to our customers."

Michael Kurz, technical director of KWG, said, "This collaboration with Linz is a strategic move that will allow us to leverage their extensive distribution network and technical know-how. Together, we can achieve greater innovation and offer even better service to our customers globally."

The company reported a drop in Scope 1 emissions. (Image source: Siemon)

The Siemon Company has announced a major step forward in its sustainability efforts, achieving a 52.5% absolute reduction in its combined Scope 1 and Scope 2 greenhouse gas emissions between 2021 and 2024.

This achievement highlights Siemon’s ongoing commitment to environmental responsibility and reinforces its long-term goal of operating more sustainably while ensuring consistent, reliable product delivery for its global customers.

The company reported a drop in Scope 1 emissions from 271 to 195 tonnes of CO₂ equivalent, and a significant reduction in Scope 2 emissions from 1,163 to 486 tonnes over the same period.

These improvements are the result of a comprehensive strategy that included extensive energy audits to identify and address inefficiencies, a shift toward renewable energy, especially solar power, and widespread upgrades to lighting and HVAC systems to enhance overall energy efficiency. Siemon also rolled out robust waste reduction and recycling initiatives and made targeted improvements to its manufacturing processes to support lower energy consumption and emissions.

These efforts form part of the company’s broader ESG strategy, which includes setting science-based targets and collaborating with supply chain partners on sustainable practices.

Looking ahead, Siemon plans to continue investing in advanced energy technologies and maintain its transparent reporting practices to ensure accountability and help customers meet their own climate goals.

“We are proud to announce this significant reduction in our GHG emissions as a critical step in our decarbonisation journey. Our commitment to innovative energy solutions and continuous improvement in operational efficiency is a testament to our proactive approach in addressing climate change. By investing in renewable energy, optimising processes, and engaging in comprehensive energy audits, we are setting new benchmarks for sustainability in our industry and building a more resilient and efficient supply chain to better serve our customers in the long run”, said John Siemon, chief technology officer and chief operations officer, Siemon.

Flaring is a leading source of the MENA region’s emissions

Fossil fuel operations in the Middle East and North Africa emitted around 20 Mt of methane in 2024, nearly all from oil and gas operations, with Iraq, Iran and Algeria accounting for more than 30% of the flared volumes and related methane emissions, according to the IEA’s latest Global Methane Tracker 2025

The annually updated Global Methane Tracker presents the IEA’s latest sector-wide emissions estimates – based on the most recent data from satellites and measurement campaigns – and discusses the various abatement options.

Flaring is a leading source of the MENA region’s emissions, accounting for around 25% of the total. Performance varies greatly, with Libya, Algeria and Iran having upstream methane intensities that are two to six times higher than Saudi Arabia, Qatar and the United Arab Emirates – all of which perform better than the global industry average.

Satellites made more than 800 methane emission observations over Algeria, 400 in Iran, and 165 in Iraq, with incomplete combustion from burning pits identified as the leading source of emissions in Algeria and Egypt, followed by gas lift system vents and equipment venting. A previous campaign in Iraq found flaring and direct venting as major sources. The IEA is working alongside the Clean Air Task Force and CCAC to support Iraq’s oil and gas mitigation efforts.

Many of the region’s national oil companies have joined the OGDC (Oil & Gas Decarbonization Charter) or OGMP 2.0 (Oil & Gas Methane Partnership), including the UAE’s ADNOC, Libya’s National Oil Corporation (NOC), Saudi Arabia’s Aramco, Bahrain’s Bapco Energies and Petroleum Development Oman. All countries in the region participate in the Global Methane Pledge except for Algeria, Iran and Syria, with many also taking part in the World Bank’s Zero Routine Flaring by 2030 Initiative. However fewer countries have developed regulations focused on limiting oil and gas methane emissions. Flaring and venting restrictions are common in most countries, but flared volumes have increased by over 50% since 2010.

Global methane emissions remain stubbornly high

Globally, the fossil fuel sector is responsible for nearly one-third of methane emissions from human activity. Record production of oil, gas and coal, combined with limited mitigation efforts, has kept emissions above 120 million tonnes (Mt) annually.

Abandoned wells and mines – included in this year’s Global Methane Tracker for the first time – contributed around 8 Mt to these emissions in 2024. Closure plans should include measures to mitigate methane emissions, the IEA says, noting that timely action is critical for effective mitigation as most emissions result from mines and wells that have recently been abandoned.

A further 20 Mt of methane arises from bioenergy production and consumption.

According to the Tracker, around 70% of annual methane emissions from the energy sector could be avoided with existing technologies such as leak detection and replacing faulty equipment. The IEA points out the cost-effectiveness of such measures, since the gas that is captured can be resold.

The Tracker finds that methane abatement could have made around 100 billion cubic metres of natural gas available to markets in 2024. A further 150 billion cubic metres of natural gas is flared globally each year, the majority of which is part of routine practices and can be avoided.

IEA analysis finds a huge range in methane emissions intensities across different countries and companies. Raising awareness and spreading best practices are essential to narrow this gap, it notes.

Satellites are bringing increased transparency, with satellite-detected emissions from super-emitting methane events at oil and gas facilities rising to a record high in 2024.

While current methane pledges by companies and countries cover 80% of global oil and gas production, only around 5% of global oil and gas output demonstrably meets a near-zero methane emissions standard. The focus should now be on turning pledges into action, the IEA says, with strong action needed to prevent a 0.1% C rise in global temperatures by 2050.

“Tackling methane leaks and flaring offers a double dividend: it alleviates pressure on tight gas markets in many parts of the world, enhancing energy security – and lowers emissions at the same time,” said IEA executive director Fatih Birol. “However, the latest data indicates that implementation on methane has continued to fall short of ambitions. The IEA is working to ensure that governments and industry have the tools and knowledge they need to deliver on pledges and achieve the goals they have set.”

The Middle East continues to develop its fossil fuels, along with renewables. (Image source: Adobe Stock)

Optimism about industry growth in the energy sector, as well as about energy transition prospects, is stronger in the Middle East and North Africa than anywhere else in the world, according to DNV’s Energy Insights 2025 Report

According to the report, based on an annual survey of more than 1,100 senior professionals, 84% of respondents in the Middle East and Africa express optimism about energy industry growth prospects compared to 68% globally, and this figure has risen sharply from 69% last year. The report highlights that the energy sector is booming in the region, as many countries look to develop both their renewable and fossil fuel resources, noting that it has become the fastest-growing renewables market outside China, mainly thanks to solar sector growth. Installed solar capacity is forecast to rise to 100GW of installed capacity by 2030, up from just 23GW today, with Saudi Arabia looking to generate half of its domestic electricity from renewables by 2030, including 40GW of solar PV – six times the current capacity. Early this year Masdar announced a 5.2GW solar plant combined with a 19GWh battery storage facility, making it the largest combined solar battery energy storage system (BESS)  in the world.

At the same time, the region is continuing to develop its fossil fuels, particularly natural gas, DNV notes. Iran, Qatar, and Saudi Arabia are in the world’s top ten natural gas producers, while other countries are also growing production.  The combination of gas and solar is a winning one, with solar offering a cheaper and cleaner way to meet rising domestic electricity demand, while natural gas can be profitably exported.

Middle East and Africa respondents are most optimistic about reaching revenue and profit targets in the year ahead, at 73% and 71% respectively, compared with 63%/54% in North America, 58%/48% in Europe, 55%/52% Asia Pacific and 63%/54% Latin America.

Uncertain political environment

The report highlights the uncertain policy and geopolitical environment, particular in the US, with political risk seen as the leading constraint to growth. Recent geopolitical shifts have caused considerable uncertainly, with a lot of capital being diverted from renewables into oil and gas, and emerging technologies such as green hydrogen CCS, green steel and synthetic fuels being negatively impacted.

Reflecting this uncertainty, several oil and gas companies, (bp for example), have scaled back renewables commitments over the past year and increased their investment in fossil fuels. 53% of oil and gas sector respondents say they will prioritise fossil fuels over renewables over the next five years — up from 46% a year ago, while 24% of respondents in the power sector are looking to prioritise fossil fuels over renewables over the next five years, more than double the figure (11%) of a year ago. While optimism in the oil and gas sector has held steady over the past two years, standing at 66% in 2025, most oil and gas respondents (60%) say that political issues such as elections, policy uncertainty and regime change are a major threat to success in the year ahead.

Policy reversals and uncertainty are expected to hold back the energy transition in some sectors and regions, with only 55% of energy industry professionals now believing the energy transition is accelerating, sharply down from 79% two years ago. A key factor noted is the shift in investor sentiment. However, many organisations continue to invest in sustainable energy, taking a medium to long-term view.

Certain parts of the world are positive about the  pace of the energy transition, notably the Middle East and Africa region, where 77% say the pace of the energy transition is accelerating,  and Asia Pacific, where the figure is 68%. In contrast, only 47% in North America and 48% in Europe think the pace is accelerating.

"Despite global economic and political uncertainty, most of the energy industry maintains a general optimism, supported by megatrends such as electrification and energy demand," says the report. "Energy security and affordability have become priorities and are influencing both oil and gas expansion and the acceleration toward renewables. Sentiment varies from region to region, with the Middle East and Africa the most optimistic, and North America the least."