DGAP-News: 2G Energy AG / Key word(s): Miscellaneous/Incoming Orders 2G Energy AG: Successful major CHP project with STEAG goes into operation in Essen 08.07.2014 / 07:28 --------------------------------------------------------------------- Corporate News 2G Energy AG: Successful major CHP project with STEAG goes into operation in Essen Facts relating to 2014 amendment to the German Renewable Energies Act (EEG) end long period of uncertainty - 2G acts as general contractor in replacing part of old, coal-fired heating plant with highly efficient CHP system - Reference project for further major projects with industrial companies and utilities - Investments in decentralized CHP systems remain highly attractive Heek, July 8, 2014 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading manufacturers of combined heat and power (CHP) systems, has acted as general contractor in installing a turnkey, biomethane-gas driven combined heat and power (CHP) system for STEAG New Energies in Essen-Rüttenscheid. 2G assumed responsibility for the entire project management for this major order. In Steag's heating plant, an old, coal-fired boiler unit consisting of the existing boiler house was replaced by an efficient CHP system with 4.4 MW electric output and 4.1 MW thermal output. The Münsterland-based company assumed responsibility for all services spanned planning, assembly of the CHP system and system peripherals, the integration of Steag's existing systems, and through to commissioning. Project director and 2G Management Board member Ludger Holtkamp expressed his satisfaction with how the project had run: "As a general contractor, we took just nine months to replace an old, conventional, coal-fired heating plant with a highly efficient CHP system based on biomethane - a regenerative fuel - that now delivers heating and electricity for regional consumers. Steag is very satisfied with our performance. As a developer and manufacturer of CHP systems, we are also a sought-after partner with our experience with large-scale, turnkey CHP projects that entail construction measures and integration into existing infrastructure. We are conducting discussions with STEAG about follow-up orders, and with other municipal utilities and major industrial companies about similar projects." Utilities and industrial operations with continuous demand for heating comprise an important group of customers for 2G. They are gradually transitioning to decentralized, environmentally compatible and highly efficient energy supplies, operate regional and district heating grids, and wish to increasingly structure their energy supplies on an independent basis, among other objectives. In Germany, Steag has commissioned six biomethane CHP power plants with a total electric output of 10 MW and invested more than EUR 13 million over recent months, for example. The modern CHP system in Essen is the by-far largest project to date in this context. Steag relies on the efficient combined heat and power principle: "At all our locations, the heat given off by the gas motors replaces some of the heat generation in the existing heating plants." Now that the Lower House of the German Parliament has ruled on the amendment to the German Renewable Energies Act (EEG), which will become effective from August 1, 2014, the facts relating to the future compensation scheme and the mandatory levy have now been fixed for all new self-suppliers. The period of uncertainty for investors and producers is now over. Following months where no information was available, there is now a clear view and basis for the calculation of investments in highly efficient and economic CHP systems. At the same time, the German government's expansion target to boost the CHP share of electricity generation from currently around 16 % to 25 % by 2020 remains plausible. To do this, however, the German government needs to implement the legislation of the EU Energy Efficiency Directive (2012/27/EU) through a reform of the German Combined Heat and Power Act (KWKG). German legislation plans an interim review of the KWKG before the end of this year. The EU directive aims to promote energy efficiency measures, to reduce climate gas emissions, and lend specific form to an estimate of the potential relating to the utilization of CHP. It obligates EU member states to adopt appropriate measures to establish and expand infrastructure for efficient district heating and cooling supplies, while taking into account the development of highly efficient CHP, and the utilization of heat and cooling from waste heat and renewable energy sources. 2G anticipates that German customers' ordering patterns will normalize again following the temporary extraordinary/acceleration effects during the first seven months of the current financial year. Of the EUR 112 million of orders as of June 30, 2014 (previous year: around EUR 60 million), a share of EUR 14 million (72 2G CHP systems, of which 38 comprise orders from Germany worth around EUR 6 million) carry delivery dates after July 31, 2014. 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 50 kW to 550 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 2013 financial year (January 1 to December 31), 2G Energy generated EUR 126.1 million of revenues, EUR 3.1 million of earnings before interest and tax (EBIT), and EUR 1.0 million of net income. The company employs 518 staff as of 31 Dec., 2013. Forthcoming dates in 2014 July 16, 2014 Ordinary Annual General Meeting, Heek Sept. 30, 2014 Publication of the half-yearly consolidated financial statements as of June 30, 2014 Nov. 25-26, 2014 Deutsches Eigenkapitalforum 2014, Frankfurt 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: [email protected] Internet: www.2-g.de End of Corporate News --------------------------------------------------------------------- 08.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: [email protected] Internet: www.2-g.de ISIN: DE000A0HL8N9 WKN: A0HL8N Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 277018 08.07.2014