As Europe's energy crisis has sent prices soaring while also forcing industry to rely on alternative sources, Volkswagen will make huge trading profits from hedges on natural gas.
The natural gas contracts are enough to heat 200,000 homes for a year.
The company started buying gas in 2020 at a price of about 30 euro per megawatt hour. Russia's invasion of Ukraine has led to a rise in their price.
Based on current prices, the trading profits would be $400 million, but the amount will depend on price fluctuations as the contracts are sold across several weeks.
The natural gas was supposed to be used to power the company's two facilities. The company is sticking to coal for power because of the worsening energy picture in Europe.
The German government wants industries to conserve gas and make sure they have enough for the winter.
The profits from Volkswagen's gas hedges will be used to offset the costs of changing to coal or fuel oil, according to sources.
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