DGAP-News

2G Energy AG: Order book position above EUR 100 million for CHP systems

DGAP-News: 2G Energy AG / Key word(s): Incoming Orders
2G Energy AG: Order book position above EUR 100 million for CHP systems

04.07.2016 / 08:54
The issuer is solely responsible for the content of this announcement.

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- Order book position as of May 31, 2016: EUR 101.1 million (previous
year: EUR 72.4 million)

- Founding of independent subsidiary in Nantes, France

- Contract with CFO Dietmar Brockhaus extended for five years

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading
manufacturers of gas driven combined heat and power (CHP) systems, reports
an order book position of EUR 101 million for CHP systems as of May 31,
2016 (previous year: EUR 72.4 million). The export ratio amounts to 44.1 %.
Along with high order book positions in the UK (EUR 19.8 million) and the
USA (EUR 13.3 million), France also contributes a pleasing EUR 3.0 million
to the Group's total order book position. This consequently confirms the
anticipated tangible demand recovery in the wake of France's new energy
policy act (see corporate news published on November 10, 2015; www.2-g.de).

The outstanding approval by the EU Commission (state aid law review) of
Germany's 2016 Cogeneration Act is reflected in 2G's order book position,
insofar as the company's EUR 7.0 million of new orders received in Germany
for natural gas operated 2G power plants lies below the previous year's EUR
19.0 million. This compares with a EUR 16.2 million order book position for
biogas driven 2G power plants (previous year: EUR 5.7 million). 2G thereby
demonstrates again that, as a medium-sized company, it can respond quickly
to corresponding market conditions, and position itself flexibly while
doing so. The company's Management Board takes a relaxed view of the
government's draft of the 2016 amendment to the German Renewable Energies
Act (EEG), which the German federal cabinet approved on June 8, 2016. This
draft includes some (market economy based) modifications for biomass
systems (including CHP systems, in other words) in compensation and subsidy
structures. State payments for electricity generated by biomass systems are
to be calculated through tenders in the future. Tender volumes (for new and
existing biomass systems) are to amount to 150 MW in each of the years 2017
to 2019, and to 200 MW in each of the years 2020 to 2022. Existing biomass
plants can also participate in tenders to receive ten-year follow-up
financing, thereby establishing a follow-up regulation in the German