Evangelos Mytilineos sent a clear message of danger regarding Europe's energy security, the impact of the crisis in the Persian Gulf, and the ever-increasing costs for industry during the Financial Times energy conference. The head of Metlen described a scene of heightened geopolitical uncertainty, emphasizing that Europe faces the risk of new energy turmoil at a time when gas storage facilities are filling slowly and fuel prices have already increased by 40% to 50%.
"Conditions are no longer normal"
He underlined that Metlen sits on both sides of the energy market, as it is simultaneously one of the largest private electricity producers in Greece and one of the most significant industrial consumers through aluminum production. As he noted, under normal conditions, these two activities act as a counterbalance; however, today the environment has changed dramatically.
Hormuz pressures natural gas and aluminum
Mr. Mytilineos explained that the crisis in the Strait of Hormuz directly affects both natural gas and the aluminum market. On one hand, aluminum prices are rising sharply, as a large portion of global production is located in Gulf countries due to low energy costs. On the other hand, natural gas—which he characterized as the most important raw material for Metlen—has become significantly more expensive.
Fears over natural gas reserves in Europe
The head of Metlen revealed that the company has already proceeded with hedging even for 2027, estimating that the greatest risk for Europe today is the slow filling of gas storage. As he mentioned, European reserves are moving at approximately 30%, whereas during the same period last year they were close to 50%, a fact that increases the continent's vulnerability to a prolonged crisis.
"We have neither Russian gas nor Qatari LNG"
His warning caused a particular sensation: if the crisis in the Gulf continues for a long time, Europe may find itself without sufficient alternative sources of supply. "We decided to get rid of Russian gas, and a few months later we have the war in the Gulf. We have neither Russian gas nor Qatari LNG. Who wins from this?" he asked.
Criticism of Brussels regarding natural gas strategy
Mr. Mytilineos criticized the European Union's decisions for the complete exclusion of Russian gas, arguing that Europe must make decisions affecting its energy adequacy with greater care. In fact, he warned that if the crisis worsens and reserves are depleted, a return of Europe to the Russian market for additional quantities of natural gas cannot be ruled out.
The new dependence on US LNG
Commenting on the LNG market, he admitted that Europe has largely replaced its Russian dependence with American LNG, noting that most of the cargoes Metlen uses today originate from the United States. However, he avoided taking a direct stance on whether this creates a new form of dependence, characterizing the issue as deeply political.
Explosive energy costs for industry
Evangelos Mytilineos directly linked the energy crisis to the competitiveness of European industry, emphasizing that as long as electricity prices remain tied to natural gas, production costs will continue to pressure businesses. As he explained, overproduction from photovoltaics leads to extremely low prices during midday hours, but in the evening, prices skyrocket to as much as 200 euros per megawatt-hour. "For an industry that competes internationally with electricity costs near 30 euros per megawatt-hour, such prices are not sustainable," he noted characteristically.
Barbs toward the EU's stance on heavy industry
In the same context, he criticized the long-standing stance of Brussels toward heavy industry, noting that for years, the perception dominated in Europe that energy-intensive industries were no longer necessary. As he said, this mindset has burdened the competitiveness of European production and left industry exposed to high energy costs.
The green transition and the "thorn" of storage
Referring to the energy transition, the head of Metlen argued that the development of renewable energy sources (RES) will continue, but will now be driven not only by decarbonization but also by the need for energy independence. At the same time, he emphasized that the biggest problem remains energy storage, especially covering demand during nighttime hours.
330 MW investment in batteries in Thessaly
In this framework, he revealed that Metlen is starting the development of one of the largest battery storage systems in Europe, with a capacity of 330 MW, in Thessaly. However, he noted that even modern large batteries offer a limited storage duration of about two hours, a fact that shows the technology still has significant limits.
Positive assessment for PPC's capital increase
Mr. Mytilineos also referred to the upcoming share capital increase of PPC (DEI) amounting to 4 billion euros, characterizing it as extremely important for the Greek energy market. He estimated that the move will be crowned with success and will strengthen the company's international expansion, while he underlined that the Greek electricity market is now in a much better state compared to previous years. At the same time, he noted that Greece has evolved into a significant exporter of electricity to neighboring countries thanks to increased production from renewable sources, emphasizing that "we export the midday energy that would otherwise be thrown away".
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