How pipeline builders master the challenges of the energy transition

Interview with Christopher Geng, Managing Director of Markstahler Rohrleitungsbau

klarx met with one of our customers – Christopher Geng, Managing Director at Markstahler Rohrleitungsbau. In the interview, we asked how sustainable pipeline construction really is and how much influence it actually has on the energy transition.

What does Markstahler Rohrleitungsbau actually do?

Until early 2022, we were mainly responsible for expanding natural gas pipelines. The war situation and the advancing energy transition led us to optimize and adapt our business model.

Our core business remains pipeline construction, especially water and gas pipeline work. The electricity sector has become enormously larger, so we now work for major energy providers. District heating is increasingly coming into focus.

How do you typically approach construction projects until completion?

It depends on the project. As a rule, we work with annual contracts and the services are clearly defined. With project-based work, it's about calls for tender from municipalities, for example. Once everything is arranged, planning and construction begin. From the planning stage onwards, you – klarx – come into play to provide us with the construction equipment we need, such as lift platforms, excavators or dumpers. The great thing is that thanks to you, we can also rent equipment at short notice if something shifts or we have internal bottlenecks.

You mentioned that you had to adapt your business model.

What challenges do you see in implementing the energy transition in the construction industry, and how do you address them?

An important topic is CO2 accounting, which we'll start working on this year. I can imagine that a company can gain an advantage in tenders if it knows its own values.

Sustainable work is increasingly coming into focus. Last year, we replaced all our power generators with power banks. Since we work at specific sites, we don't need large generators on construction areas. These are not only loud but also consume a lot of energy. We also use electric cars when we drive to job sites.

As a business owner, I have to ask myself every day how we can best handle the issue of sustainability.

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How do you personally approach the topic of "sustainability"?

Whenever we dig a trench, we try to coordinate as many projects as possible and ask municipalities if there are other measures we can include. We always try to think ahead and influence the areas in the value chain where we can. This ultimately saves effort and energy.

From left to right: klarx employee Nele Dörk, Markstahler Rohrleitungsbau Managing Director Christopher Geng, klarx employee Nicky Rau

To what extent do EU measures influence your decision when renting construction equipment?

How sustainable the rental of construction equipment can really be and how to define it – we didn't always consider that at first. You pay close attention to maximum transport kilometers* and machine operating times on the job site. When we have the option to decide whether to rent an electric version or diesel, we choose the former – as long as the performance is sufficient, of course.

Now, to get to the point: How do you see the future?

What challenges do Markstahler Rohrleitungsbau and the construction industry face in 10 years?

The switch to alternative drive types will definitely cost money and be time-consuming. There's a shortage of skilled workers, especially in the trades. Plus, we need enough resources for alternatives. Biogas is a good example, which we offer. But there isn't enough of it, so demand is met right up to the limit until it runs out. The question is whether this approach itself is sustainable. Even if the energy derived from it is sustainable, there are shortages elsewhere. The same applies to hydrogen. You can replace natural gas with hydrogen and are supposed to by 2035, but if there isn't enough of it, it doesn't help anyone. Currently, too much is lost in hydrogen production for it to be profitable.

Okay, that sounds like a paradox. So who are the winners in all this?

Electricity providers will have all the advantages in the future. Ultimately, everything can be converted to electricity – gas, solar energy, wind energy – it all comes down to electricity. There's a lot of momentum in grid expansion right now, and many operators are realizing that cable cross-sections are too small when heat pumps or e-mobility are added. In some cases, entire solar farms can't be connected to the grid because the grid can't handle the required voltage at certain points.

I have one more question – about renovation requirements: Are you already feeling the effects of the EU decision?

Currently, it's limited. We notice it when it comes to quickly replacing heating systems according to the GEG (Building Energy Act). But builders are running out of work. This means in the future we'll need to focus less on new construction and more on renovation.

Summary: What we learned about pipeline builders and the challenges they face

Much of it seems more like an ad-hoc government announcement that can change at any time. This also raises the question of sustainability: How sustainable can a statement itself be if the conditions aren't yet in place?

That's why it's all the more important to reliably plan the things you can actually control. klarx as a solution provider for renting construction equipment and job site facilities ensures guaranteed availability of construction equipment and provides comprehensive service. This allows pipeline builders to act sustainably from the planning phase onwards and meet their construction equipment needs. Reliability means providing resource-saving measures to successfully realize construction projects. And that's what klarx does.

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Image credits:

"Nele Dörk, Christopher Geng and Nicky Rau" © Own representation