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2G Energy AG: Successful major CHP project with STEAG goes into operation in Essen - Seite 2

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