US activist investor Elliott Management has taken a 5% stake in RWE and called for a strategic overhaul to bolster shareholder returns, putting the utility’s decarbonisation and hydrogen plans under the microscope.
Elliott, which had previously led investor revolts against the likes of BP, called for RWE to significantly increase and accelerate its share buyback programme – signalling a push for greater shareholder returns.
This follows RWE’s recent decision to reduce its 2025-2030 investment plan by 25% while implementing stricter investment criteria, and raising return targets.
While the activist investor said the measures were an “important first step towards more disciplined capital allocation,” it expressed “disappointment” over the lack of clarity regarding RWE’s plans to improve returns.
“Given the announced CAPEX reduction and RWE’s persistent undervaluation, we believe there is a compelling opportunity to significantly increase and accelerate the ongoing share buyback programme,” an Elliott statement said.
RWE posted a net income of €2.3bn ($2.49bn) in 2024, revealing plans to increase its earnings per share to €4 ($4.33) by 2030 and an annual increase of its dividends by 5% to 10%.
It also reduced its planned investments between 2025 and 2030 from €45bn ($48.69bn) to €35bn ($37.87bn), after it delayed investments due to offshore wind risks in the US and a slow ramp-up of hydrogen in Europe.
The company is currently constructing a 300MW electrolyser project at its Lingen power plant in Germany, which is scheduled to come online in 2027.
Earlier this month, RWE inked a 15-year offtake agreement with TotalEnergies for 30,000 tonnes of green hydrogen per year from 2030.
Elliott’s intervention brings fresh scrutiny to RWE’s energy transition strategy, including its ambitions in hydrogen. The activist investor has form in this space, having previously pressured BP to improve shareholder returns amid concerns it was prioritising green investments at the expense of profitability.
Earlier this year, activist investors succeeded in reshaping the board at Air Products after they accused the now-previous management of overspending on clean hydrogen and neglecting shareholder profits.
A similar dynamic could play out at RWE, where calls for accelerated buybacks and tighter capital allocation may constrain longer-term bets on clean technologies like green hydrogen.
With CAPEX already scaled back and offshore wind delays cited, the tension between investor expectations and the realities of decarbonisation is sharpening—not just for RWE, but for all major companies navigating the energy transition.
