Posted on 10 Nov, 2015 by Derek Sivyer
The Management Board of 2G Energy AG (ISIN DE000A0HL8N9) – one of the internationally leading manufacturers
of gas operated combined heat and power (CHP) systems – confirms its expectation of significant
growth in the share of its international business in light of a sustained recovery of international new order
intake during the current second half of 2015. The strategic focus on a broad international diversification of
sales activities that the company has launched in recent years is already proving increasingly successful.
2G receives major order from leading UK sugar industry company
2G has won an order for a 5 MW CHP plant in close cooperation with a German full-range service provider
that is highly specialized in the planning and construction of biogas plants for the agricultural and industrial
sectors. Two engines (2.2 MW and 2.8 MW) will generate 5 MW of installed electric output. This order comprises
one of the largest orders in the company's history to date. Delivery of the plant is planned for mid-
April 2016, with commissioning scheduled for June 2016. The order comprises a large-scale container project,
the first of its type for 2G. This promising concept is especially interesting for utilization in countries
where local powerhouse installations are expensive or difficult to realize. All of the CHP modules, each
weighing 30 tonnes, including medium voltage plants, are being installed in 8.5 meter high container structures
as part of this concept. Value is thereby being created almost entirely at 2G’s headquarters in Heek,
reducing construction site assembly risks. This order will be recognized as sales revenue in the second half
New cooperation with Veolia subsidiary COGENCO already bearing first fruit
The new partnership with Veolia/COGENCO is already coming alive with a first order in the UK and the
planning of further projects. This first order relates to a natural gas driven 400 kW electric output CHP for a
hospital that is to take over its primary heating supplies in-house, which will also result in a significant total
energy cost reduction. 2G's CHP management also delivers clear long-term operating benefits and a sustained
availability boost. Service evaluations can be conducted remotely from the control station in Heek,
with potential operating interruptions being addressed and planned proactively via the service fleet.
2G's Management Board and the UK regional management team that is heading up the project are pleased
with the high speed at which their cooperation is being implemented. The technology leadership of 2G and
the flexibility that it offers as a medium-sized company proved decisive to the partner's decision. The immediate
start to this collaboration has highlighted how the partners wish to make their cooperation venture
a mutual success. Indications already exist of follow-up orders and other enquiries are being processed.
New French energy policy legislation comes into force – France aims to increase feed-in payments
for biogas systems
France approved new energy policy legislation at the end of July 2015, thereby also paving the way for
strong growth in the biogas sector. A total of 1,500 new biogas systems are to be constructed by 2020.
France currently operates a total of 274 MW of installed plant output, with average plant output of 217 kW.
With the construction of an additional approximately 325 MW, installed output would consequently more
than double by 2020. To this end, the French Ministry of Ecology, Sustainable Development and Energy has
announced that it will modify feed-in payments for electricity generated from biogas plants. Both existing
and new biogas systems can benefit. The compensation period will be raised from 15 to 20 years. Existing
systems and plant projects that are about to be constructed and have already submitted all documents to
the French Environment and Energy Management Agency (ADEME) can benefit from applying for the new
feed-in payments from November 3, 2015. These payments amount to 18 cents/kWh for existing systems
up to 80 kW, and to 16.5 cents/kWh for systems from 300 kWh up. The draft ministerial decree envisages
compensation of 17.5 cents/kWh for new systems up to 80 kW, and 15.0 cents/kWh for 500 kW plants. Tariffs
for intermediate output levels will be calculated by linear interpolation. Current compensation for plants
with 500 kW capacity stands at 13 cents/kWh, and at 14.2 cents/kWh for systems up to 150 kW. The premium
for utilization of waste from livestock farming is also to be increased from currently 2.6 cents/kWh to 4
cents/kWh. An act relating to direct marketing is also being discussed, with the idea of tenders being introduced
from 2016 for plants from 300 kW (optional), or from 500 kW (mandatory). In addition, plant optimization
safety is to play an important role in the further development of the French biogas sector. Given the
prospect of a new support framework for biogas plants, 2G is already noting a tangible pickup in demand
for biogas driven CHP systems in France. Demand is emanating both from 2G's French liaison office in
Rennes, and through biogas plant builders – so-called resellers. 2G anticipates a significantly more positive
business trend in France over the coming years.
Japan: 2G wins tender through partners to install CHPs at treatment plant
Through its regional sales partners, 2G has now for the first time won against the Japanese market leader in
direct competition in tenders. 2G will supply three biogas driven CHP systems each with 75 kW electric output
for a treatment plant at Jonanjima in Tokyo Bay. Commissioning of the reference plant that is still under
construction is planned for summer 2016. High potential exists over the coming years to win orders and realize
sales given the currently around 2,000 treatment plants in Japan (only 20 % of these are equipped with
systems to exploit the energy contained in the gases from treatment plants). At present, 2G is the only provider
in Japan in the area of smaller biogas driven systems of 75 kW to 400 kW electric output. Compared
with its competitors, 2G is able to offer Japanese customers higher CHP system efficiency accompanied by
optimization of space requirements through container solutions and compact powerhouse installation design.
2G's regional sales and service partner of many years' standing provides the related service.
2G company portrait
2G Energy AG ranks among the world's leading manufacturers of cogeneration (CHP) systems for decentralised energy
production and supply by means of combined heat and power. The company's product portfolio includes systems with
an electric capacity between 20 kW and 4,000 kW for operation with natural gas, biogas, biomethane and other lean
gases. 2G has successfully installed several thousand CHP systems in 35 countries to date. Especially in the 50 kW to 550
kW performance range, 2G possesses proprietary technological combustion engine concepts characterised by low specific
fuel consumptions, high operational availability and optimised service intervals. Besides the main production site at
the Group headquarters in Heek, Germany, the company has invested in an additional production and sales & service
site in St. Augustine, Florida, USA. 2G's customers range from agricultural and industrial operations, local authorities,
and the residential sector through to municipal utilities and large-scale utilities. The high level of customer satisfaction
is founded on a dense service network as well as 2G power stations' high technical quality and performance. These
power stations achieve an overall degree of efficiency from 85 percent and to well above 90 percent thanks to combined
heat and power performance.
Along with the construction of combined heat and power stations, the company, located in Westphalia in the northwest
of Germany, offers integrated solutions spanning the planning stage and installation through to service and maintenance
work. In the context of the energy policy revolution, and as part of modern energy supply concepts, CHP systems
are gaining considerably in importance in intelligent energy grid systems – so-called virtual power plants – due to
their decentralised and scalable operation, and predictable availability.
2G is consistently expanding its technology leadership through continuous research and development work, both in gas
engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software
development. The "virtual power plant" operating type has been created with a software solution, for example. Overall,
the 2G system is thereby operated on a basis that is "heating-managed and electricity-oriented" in order to significantly
simplify integration within a grid group. In the energy policy revolution's future electricity market design, such digitalisation-
enabled flexibility forms an indispensable system-relevant element in combination with solar, wind, biogas and
natural gas producers, and creates a high barrier to market entry for competitors.
The shares of 2G Energy (ISIN DE000A0HL8N9) have been listed in the Entry Standard of Deutsche Börse AG since July
31, 2007. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. The company's founders
held 56.1 % of the shares as of December 31, 2014, with the free float amounting to 43.9 %.
Further information: www.2-g.de
2G Energy AG
Telephone: +49 2568 9347-2795
Telefax: +49 2568 9347-15
Members' press release