Westfalen CEO Perkmann at Handelsblatt decarbonization conference: “Major challenge for small and medium-sized enterprises”

The company supplies more than 60,000 commercial customers throughout Germany – mostly small and medium-sized enterprises – with fuels, thermal energy, and, above all, industrial gases, and therefore has extensive market insight.

In a keynote speech entitled “How can decarbonization bypass small and medium-sized enterprises?” Perkmann highlighted the enormous challenges facing small and medium-sized enterprises in the transition to a sustainable future: “For many companies, high costs and a lack of incentives are preventing them from switching to sustainable technologies such as hydrogen, CO2-neutral gases, and heat pumps,” he said, describing one of the fundamental hurdles for the future orientation of medium-sized industry.

Lack of political support slows down sustainable technologies

“Decarbonization is not only an obligation for SMEs, but also a great opportunity – but the path to get there is challenging for all of us,” said Perkmann. Despite numerous positive developments, the widespread use of environmentally friendly technologies is still a long way off. Perkmann called for more political support in the form of accessible subsidy programs and financial incentives to enable further progress. He sees great potential for reducing emissions with the right political framework, particularly in the area of process heat.

Don't let the potential of German SMEs go to waste

“It is right to start decarbonization with those who cause the most emissions. However, if we focus on large-scale industry and leave small and medium-sized enterprises out of the picture, a lot of potential will remain untapped,” Perkmann continued. He pointed out that the backbone of the German economy is characterized by particular flexibility and willingness to perform. Perkmann cited hydrogen as an example: “Small businesses would not have to wait for the hydrogen core network to be rolled out on a large scale before they can use green hydrogen. Instead, they could be supplied quickly and at any time with the necessary capacities through a decentralized supply system. We should take advantage of this.” However, reliable incentives are needed to make it worthwhile for businesses to switch to climate-friendly production.

At the same time, businesses also have a responsibility: “Those who fail to act and turn a blind eye to the transformation will lose out in the long term,” says the doctor of business administration with certainty. Westfalen itself has already reduced its own CO2 emissions by a third since 2019. Perkmann: “And we want more – especially as a supplier and partner to our mostly medium-sized customers. We are therefore continuing to expand our green product portfolio in the areas of electricity-based heating, hydrogen, and e-mobility.”