Corporate | 3 February 2014 07:28

2G Energy AG: largest order in the company’s history comes from the USA

2G Energy AG / Key word(s): Incoming Orders/Incoming Orders

03.02.2014 / 07:28

Corporate News

2G Energy AG: largest order in the company’s history comes from the USA

– EUR 46 million order book position as of December 31, 2013 slightly ahead of expectations

– January 2014 new order intake at around EUR 30 million including USA

– German Renewable Energies Act amendment: CHPs remain indispensable in Germany- 2G reinforces it’s international business

– 2G production and sales DIN EN ISO 9001 certified

– 2G CHP systems receive Lower- and Medium-Voltage Directive certification

Heek, February 3, 2014 – 2G Energy AG (ISIN DE000A0HL8N9), one of the leading manufacturers of combined heat and power (CHP) plants, has received the largest individual order in its company’s history – a mid-single-digit in millions of euros – through its US sales and service unit 2G Cenergy Inc. 2G is supplying a modular biogas and landfill gas driven CHP with an installed output of 9.4 MW for the world’s largest waste recycling plant located in Ohio, USA. The customer, Team Gemini, has also ordered a gas treatment plant and a combustion management system from 2G as part of the order. Overall new order intake in the USA for both the biogas and natural gas markets are on a positive organic growth trend. Tender and approvals procedures in 2013 have now fed through to the expected orders for 2G. 2G continues to expand its market share in one of the world’s largest markets – which is not distorted by either artificial guarantees or feed-in payments. 2G Cenergy has concluded further orders with renowned customers such as automotive supplier group MAGNA, supermarket chain Wholefoods, Eden Resorts Hotels and Anaergia Waste Management. Some of the 2G CHP plants will not be commissioned until 2015 depending on the projects concerned. The related revenue and earnings will not be recognized until 2015 due to German commercial code (HGB) accounting standards.

At around EUR 46 million as of December 31, 2013, excluding the USA, 2G Group’s consolidated order book position comprising new CHP plants was slightly ahead of expectations. Some work has already started on projects from this order book position. Such work is reported as partially completed work within the changes to inventories item in the 2013 balance sheet, but will not be recognized as revenue until 2014. Around two thirds of the orders derive from Germany. In turn, two thirds of these comprise orders relating to the supply of natural gas-driven CHP plants, and one third relate to the delivery of biogas-driven CHP plants. Orders from abroad are dominated by biogas-driven plants. As far as Europe is concerned, not only Germany, but also the United Kingdom and Benelux markets registered especially good order book positions. Overall, the Group received around EUR 30 million of new order intake in January 2014 (including around EUR 21 million from the USA).

Discussion on EEG revision will not be able to unsettle 2G
CEO Christian Grotholt comments on the discussion paper of the German federal minister of economic affairs and energy, Sigmar Gabriel: ‘For the time being a broad discussion about the minister’s proposal to revise the EEG takes place on different levels among national and state politicians, among industry associations, investors and plant operators. According to the minister’s discussion paper the revised EEG is scheduled to come into force by August 1, 2014. The restarted political discussion about the handling of promotions for renewable energies reassures the 2G management in it’s strategy which we have been following over the last couple of years: a) to powerfully expand our business activities to markets which are independent from such promotions like the US market and b) to make sure that technologically and from a geographically perspective 2G has a diversified business model. Nevertheless, we will continue to plead for fostering highly efficient CHP power units as the political targets to reduce CO ₂ emissions will only come into reach by using such a technology. The government already has set a target for CHP: 25 % of power in 2020 shall be provided by CHP power units. This is a clear avowal to promote CHP given by the government.

DIN EN ISO 9001 certification
Production and sales at 2G Energietechnik GmbH, an important 2G Group company, received DIN EN ISO 9001 quality management certification at the end of 2013. 2G is thereby strengthening its expertise in the growing German market for natural gas-driven CHP systems, as well as on international markets as part of tenders.

Lower- and Medium-Voltage Directive
The complex structure of energy supplies in Germany, in which increasingly smaller and decentralized generation units are involved, is making significantly higher demands in terms of electricity networks’ stability. The BDEW directive for the connection and parallel operation of self-generation plants to the medium-voltage power network (the so-called ‘Medium Voltage Directive’) as well as the EU low-voltage directive serve to secure the supply quality and integration of decentralized and smaller generation units such as PV systems, wind turbines, and CHP systems driven by fossil or regenerative fuels.

Certification pursuant to the Medium Voltage Directive is a requisite for combustion engines such as gas motors as of January 1, 2014. 2G has undergone a corresponding inspection process, and conducted related measurements as part of testing over several weeks. Since TÜV Nord has already confirmed conformity, final certification will occur before the end of the first quarter of 2014. For this reason 2G’s CHP plants are well prepared from a technological as well as formal perspective to be part of the claimed grid- and electricity-market integration of decentralized power units. In Germany and Europe 2G complies with all grid-specified requirements. Thus, the sales unit and participations in tenders are supported in an optimized way.

2G Energy AG company profile
2G Energy AG is amongst the world’s leading manufacturer of cogeneration systems (CHP) for decentralized energy production and supply by means of combined heat and power. The company’s product portfolio includes systems with an electrical capacity between 20 kW and 4,000 kW for the operation with natural gas, biogas or bio methane. So far, 2G was able to successfully install thousands of CHPs in 25 countries. Especially, in the performance range of 75 kW to 450 kW 2G posses own technological combustion engine concepts characterized by low specific fuel consumptions. Next to the main production site at its headquarter 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 farmers to industrial clients, municipalities, real estate industry, up to municipal utilities and big utility companies. The high level of customer satisfaction is founded on the close-knit service network as well as the high technical quality and performance of 2G power stations. Thanks to the combined heat and power performance they achieve an overall degree of efficiency between 85 percent and well above 90 percent. To further enlarge the technologically leadership the company continuously invests in its R&D activities for gas engines for the use of natural gas, biogas and synthetic gases (e.g. hydrogen). Next to the construction of combined heat and power stations, the company, located in Westphalia in the north-west of Germany, offers integrated solutions reaching from the planning stage and installations to serial service and maintenance work. Due to its decentral locations, scalability and projectable availability combined heat and power stations shall play a crucial role as part of intelligent networked energy systems – so called virtual power stations – within the ongoing switch to clean energy.

In the context of Germany’s new energy policy, CHPs within smart grids – so-called virtual power plants – are becoming rapidly important due to their predictable availability. 2G Energy (ISIN DE000A0HL8N9) is listed in the Entry Standard of Deutsche Börse AG. The share capital amounts to EUR 4,430,000, and is split into 4,430,000 shares. As of December 31, 2013, the company’s founders held 55.9 % of the shares, with the free float amounting to 43.9 %. In 2012 financial year (January 1 to December 31), 2G Energy generated EUR 146.5 million of revenues, EUR 16.5 million of earnings before interest and tax (EBIT), and EUR 11.3 million of net income. The company currently employs 486 staff.

Forthcoming dates in 2014
May 28, 2014 Publication of the consolidated annual financial statements as of December 31, 2013
July 16, 2014 Annual General Meeting
Sept. 30, 2014 Publication of the half-yearly consolidated financial statements as of June 30, 2014

Further information: www.2-g.de

Investor relations contact
2G Energy AG
Benzstr. 3
48619 Heek
Germany

Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
E-mail: ir@2-g.de
Internet: www.2-g.de

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Language:	English
Company:	2G Energy AG
	Benzstr. 3
	48619 Heek
	Germany
Phone:	+49 (0)2568-9347-0
Fax:	+49 (0)2568-9347-15
E-mail:	service@2-g.de
Internet:	www.2-g.de
ISIN:	DE000A0HL8N9
WKN:	A0HL8N
Listed:	Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in Open Market (Entry Standard)

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