Corporate News Heek, November 11, 2019

2G and Rolls-Royce cooperate on gas generators for CHP units

Heek/Friedrichshafen, November 08, 2019 - 2G Energy AG, based in Heek, Germany, and the Power Systems division of the Rolls-Royce technology group based in Friedrichshafen, Germany, have signed a cooperation agreement on November 8, 2019, for the mutual purchase of gas generators for combined heat and power plants (CHPs).

Rolls-Royce will be supplied by 2G Energy gas generators and CHP modules in the 250 to 550 kW power range, both including and excluding heat extraction. Equipped with its own controls and other specific components, Rolls-Royce will market them under its MTU product and solution brand.

In return, 2G will purchase MTU Series 4000 gas generators from Rolls-Royce with an electrical output range of 776 to 2,535 kW for its CHPs for the decentralized generation of electricity and heat.

Christian Grotholt, CEO of 2G Energy AG, sees the partnership as the fruit of many years of development work at 2G aimed at combining high efficiencies with low lifecycle costs in engine development: "The combination of environmentally compatible energy conversion, high availability and low service costs enables plant operators to run CHP plants on a sustainably profitable basis. This is the guiding principle for our CHP solutions, which are designed to meet rising operational flexibility requirements. We see these CHPs with gas engine technology for natural gas, biogas or e.g. hydrogen as a backbone technology for the economic implementation of the energy revolution."

Grotholt expects the partnership with Rolls-Royce to further strengthen 2G's market position in the electrical power range from 50 to 550 kW, which should lead to further progress in delivering customer benefit: "We will further pursue the expansion of our technological leadership through continuous research & development work beyond gas engine technology to include software development and the digitalization of plants and processes."

"The strategic partnership with 2G complements our product range with energy-efficient and environmentally compatible CHPs and represents a further strategic step towards becoming a solution provider," comments Dr. Petar Pelemis, Vice President Corporate Strategy & Product Management of Rolls-Royce's Power Systems division. Within the foreseeable future, the 2G products will replace Rolls-Royce's low-power cogeneration units, which were previously based on the proven MTU Series 400 gas engine.

"Rolls-Royce CHP's, based on gas generators in the output range of currently 220 to 11,800 kW, are ideally suited as components of microgrids, i.e. self-sufficient power grids that combine renewable energy sources with battery storage and, for example, gas-powered generators," notes Andreas Görtz, Vice President for Decentralized Energy Systems at Rolls-Royce. "Thanks to intelligent controls, they optimally harness the energy sources available in the microgrid, thereby avoiding climate-damaging CO2." If the gas engines are powered by biogas or synthetic fuel produced with electricity generated from renewable sources, these combined heat and power plants, either on their own or as part of microgrids, make important contributions to environmentally compatible energy supply. "The fact that 2G has decided to rely on MTU gas generators with our successful Series 4000 in the upper power range furnishes further proof of our outstanding technological position and will further strengthen our position in the gas generator market," Görtz added.

A reciprocal service agreement is associated with the procurement partnership, whereby the service organizations receive the rights to the comprehensive servicing of the respective other manufacturer's products. This ensures optimum service for all engines integrated into the systems of both cooperation partners.

2G company portrait
2G Energy AG is an internationally leading full service provider of combined heat and power plants (CHP) with electric output between 20 kW and 2,000 kW, which are deployed for the decentralized generation and supply of electricity and heating. 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. In particular, this product range, which is based on thousands of plants realized, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These include rising energy demand accompanied at the same time by the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalization that 2G consistently implements 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 cogeneration of mechanical energy and heating/cooling make CHP technology more efficient and more environmentally compatible than conventional energy production methods. Compared with conventional electricity generation, CHP technology saves up to 40 percent of primary energy, and emits up to 60 percent less carbon dioxide and nitrogen oxide. 2G customers thereby benefit consistently from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G employs around 640 staff at its headquarters in Heek, Germany, in St. Augustine, USA, as well as at five other European locations. The company is active in a total of 50 countries and generated net sales of EUR 209.8 million in the 2018 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. The share capital amounts to EUR 4,430,000 and is divided into 4,430,000 shares. As of June 30, 2019, company founders Christian Grotholt and Ludger Gausling held a 53.0 % interest in the company, with the free float amounting to 47.0 %.

2019 calendar dates
November 25 Q3 key figures and business trends
November 25-26 German Equity Capital Forum 2019, Frankfurt am Main
January 16 Pareto Securities Power and Renewable Energy Conference, Oslo
 

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