DGAP-News: 2G Energy AG / Key word(s): Alliance 2G Energy AG: Strengthening international market presence through partner concepts 06.09.2016 / 09:24 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 2G Energy AG: Strengthening international market presence through partner concepts - Sales partnership with Penn Power Group bolsters US market presence - UK and Ireland: Cooperation with Veolia bears fruit - Gratifying demand trend and good order book position in Japan - 5 MW order in UK commissioned successfully - EU Commission gives state subsidy law approval to German Cogeneration Act (KWK-G) up to 1 MWel 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) plants, has signed a sales partnership agreement with Penn Power Group ("PPG"), Philadelphia (Pennsylvania), to further tap the North American market. Through its subsidiaries Northeast Energy Systems and Western Energy Systems, the Penn Power Group sells several manufacturers' gaseous fuel- operated energy generation plants in the northeastern and western states of the USA respectively. Feasibility studies, extensive plant system integration at customers' sites, and service and maintenance augment the Penn Power Group's offering. PPG expands its product portfolio with highly efficient 2G power plants in the lower and mid performance range. A study of potentials that the US Department of Energy (DOE) published in March 2016 forecasts capacity potential of around 85 GWel, especially in the 50 kWel to 5 MWel capacity ranges for industrial and commercial applications. Through expanding its sales and service network with PPG, 2G aims to further grow its market shares in biogas and natural gas driven CHP systems on the North American market. UK and Ireland: successful cooperation with Veolia The cooperation agreed upon by the end of 2015 between 2G and Veolia in the United Kingdom and Ireland proves to be successful. Until today ten orders with an overall value of about 2 million EUR have been generated with the collaboration of Veolia. The cooperation benefits from both parties excellence where 2G delivers its CHP power plants up to an electrical performance of 4.4 MW and Veolia undertakes sales, service and project management especially in the UK market. In addition, Veolia's worldwide corporate network contributes to the cooperation's success as 2G receives requests for projected CHP plants from all over the world which could trigger further orders. In the United Kingdom, a major order for UK sugar manufacturer British Sugar was also recently concluded. 2G reported on this CHP large-scale container project on November 10, 2015. Overall, at the Bury St. Edmunds site, 2G has installed plant output of 5 MW electric and an additional 5 MW thermal via an avus 3000a and an avus 2000a. The plants at British Sugar are connected to the national grid, and support supplies of around 8,000 households with electricity. Process heating is utilized at the industrial site. Due to the container design, 2G conducted manufacturing of the plant entirely at its German production site in Heek, and in July 2016 commissioned the plant to schedule within a few weeks after delivery. Gas to operate the CHP power plants derives from a neighboring biogas system that processes sugar beet remains. Around 210,000 tonnes of granulated sugar are shipped per year from the Bury St. Edmunds production site. A film about the project can be downloaded from: https://www.youtube.com/ watch?v=rnDfD9qnIt8 Good trend in orders in Japan Japan is also developing further as an attractive sales market. The order book position stood at EUR 4.5 million as of July 31, 2016. 2G addresses the Japanese market exclusively with its partner firms Technis, Tsuchiya and Fuji Electric. Demand to date has consisted exclusively in the 50 kWel to 2 MWel performance range for biogas operated systems for agriculture as well as for landfill and sewage treatment plants. The average output of the installed 2G power plants is in the range between 250 kWel and 400 kWel. The Japanese regulatory framework for feed-in payments for electricity derived from biogas is proving stable. 2G is well represented on the Japanese market with meanwhile 60 plants and installed output of around 15 MWel. Overall, the 2016 financial year in Japan is developing very well for 2G. Kamps bakeries rely on energy efficiency from 2G CHP technology Together with E.ON Energy Solutions GmbH as energy service provider, Germany's leading craft bakeries chain, Kamps GmbH, based in Schwalmtal on the Lower Rhine, commissioned a 2G agenitor 406 with buffer storage unit in July 2016. The natural gas operated CHP power plant supplies the production and administrative building in Schwalmtal with electric and thermal energy. The launch of an energy management system has brought an added focus on sustainable and environmentally-aware energy supplies to Kamps. With the commissioning of the 2G power plant with 250 kW of electric output and 260 kW of thermal output, the company is saving 490 tonnes of CO2 per year through providing electricity and heating in line with demand, according to the company's own data. With 85.3 % total efficiency, the 2G power plant helps to significantly reduce energy costs at the Kamps GmbH headquarter locations, and reduce environmental burdens. German Cogeneration Act (KWK-G) receives state aid law approval from EU Commission Following a long waiting period, the EU Commission issued state aid approval for the German Cogeneration Act (KWK-G), according to information from the German Federal Ministry of Economics and Technology (BMWi). Formal approval from Brussels is anticipated by mid-September 2016. The German Federal Office for Economic Affairs and Export Control (BAFA), which is responsible for approving CHP plants under the KWK-G, can then issue preliminary and decision notifications for CHP systems commissioned since January 1, 2016. The same also applies for approving the electronic notification process for mini-CHP systems up to 50 kWel, and the disbursement of outstanding CHP subsidies to CHP plant operators. KWK-G support applies for both new and modernized natural gas operated CHP systems as well as for retrofitted natural gas operated CHP systems. The most important new aspects: Most of the KWK-G remains as it stands in its version dated December 21, 2015. CHP plants with less than 1 MWel of electric output receive support as set out in the act (CHP subsidies). 2G presented the subsidy rates in an overview in a Corporate News item published January 12, 2016. For operators of CHP systems with electric output between 1 MWel and 50 MWel, support is to be converted to a tender process based on the German Renewable Energies Act (EEG). No reliable information is available yet providing details about the tender model, requisite statutory amendments and directives, or the start of the tenders, however. A transition regulation appears to be planned for systems commissioned after 2016 and up to 2018, although they must have approval under the BImSchV (German Federal Emission Protection Directive) or a binding order by the end of 2016. The 2G Management Board's appraisal of the KWK-G has not changed. It is important that the requisite legal and investment security for CHP systems now prevails again in Germany, especially in 2G's core market in the electric performance range between 50 kWel and 550 kWel. Possibilities exist to further boost CHP systems' share of electricity and heating supplies - applying suitable concepts and products. Essentially, the KWK-G creates opportunities for 2G. The growing export share in the CHP business and diversification across performance classes and gas types also generates numerous business options and growth opportunities above and beyond this. 2G company portrait 2G Energy AG ranks among the world's leading manufacturers of cogeneration (CHP) systems for decentralized energy production and supply by means of combined heat and power. The company's product portfolio includes systems with 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 40 countries to date. Especially in the 50 kW to 550 kW performance range, 2G commands proprietary technological combustion engine concepts characterized by low specific fuel consumptions, high operational availability and optimized 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 the 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 decentralized 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, for example, has been created with a software solution. Overall, the 2G power plant 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 digitalization-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 55.3 % of the shares as of December 31, 2015, with the free float amounting to 44.7 %. 2016 calendar dates Sep. 27, 2016 Semi-annual consolidated financial statements as of June 30, 2016 21-22 Nov. 2016 Germany Equity Capital Forum 2016 Nov. 30, 2016 Q3 key figures and business trends IR contact 2G Energy AG Benzstr. 3, 48619 Heek Tel.: +49 (0) 2568 93 47-2795 Fax: +49 (0) 2568 93 47-15 Email: [email protected] Internet: www.2-g.de --------------------------------------------------------------------------- 06.09.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange; Open Market (Entry Standard) in Frankfurt End of News DGAP News Service --------------------------------------------------------------------------- 499203 06.09.2016