Siemens Energy on Tuesday, says it will no longer participate in new tenders for pure coal-fired power plants.
Although, it said existing commitments including binding offers for coal-fired power plant projects will be met, new ones will not be accepted.
The energy firm, in a statement said it will also continue its CO2-reducing service and solutions business, such as combined heat and power (CHP) projects.
“Siemens Energy is now further analyzing with the requisite care what specific consequences this step will have for its employees and sites that are concerned.
“Siemens Energy will now discuss with its partners in the field of coal-fired power plant technology about the consequences of the decision for the partnerships,” it said.
Coal is one of the main sources of energy production around the world. Coal energy is generated when the fossil fuel is burned to generate heat and produce steam, which spins turbine generators that produce electricity.
Coal-burning energy plants are a major source of air pollution and greenhouse gas emissions. In addition to carbon monoxide and heavy metals like mercury, the use of coal releases sulfur dioxide, a harmful substance linked to acid rain.