Vattenfall's CEO Anna Borg looks on after the presentation of the sales report at the headquarters in Stockholm, Sweden April 29, 2021. Janerik Henriksson/TT News Agency/via REUTERS

STOCKHOLM, May 4 (Reuters) - Sweden's Vattenfall (VATN.UL) has initiated a strategic review over a possible divestment of its Berlin heat business, as it looks to phase out remaining fossil fuels in its operations, the utility said on Wednesday.

The state-owned company said there were good arguments both to keep and sell the business, which supplies hot water and heating to about 1.3 million residential units.

"In both scenarios, Germany remains a key market for Vattenfall," Chief Executive Anna Borg said in a statement, adding the company would "continue to play an important role in the German energy transition".

Vattenfall said that the head of its heat business area, Ulrika Jardfelt, would leave the company in connection with the review, to be temporarily replaced by business area Customers & Solutions chief Martijn Hagens.

Vattenfall's heat business in Berlin owns and operates 10 heat and CHP (combined heat and power) plants, 80 small-scale CHP facilities, and various other assets. It employs roughly 1,700 people.

Source: Reuters

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