EnviTec Biogas AG to build first biogas plant in Serbia

Biogas plant manufacturer accelerates international expansion

Lohne, 27 January 2011 – The international expansion of EnviTec Biogas AG, the leading European biogas plant manufacturer, continues. The company is just about to enter the Serbian market, where its subsidiary, EnviTec Biogas South East Europe, has signed a contract for the construction of the first biogas plant with the operator of a dairy farm. The latter will use the plant to generate electricity and heat from liquid manure and maize silage and cut the cost of its dairy production by using the heat generated. EnviTec Biogas South East Europe beat nine competitors to win the contract.

The plant with a rated electrical output of 635 kW will be built in Curug, a village in the autonomous province of Vojvodina, with construction scheduled to start in March of this year. The contract was awarded by Velvet Farm, a member of feed manufacturer Global Seeds. Apart from the compensation for the eco-friendly electricity generated, the plant will offer two more benefits to Velvet Farm; first, the company will no longer need artificial fertiliser, as the fermentation residues from the biogas plant can be used as high-quality fertiliser. Second, the dairy farm operator can use the exhaust heat from the biogas plant’s co-generation unit to heat the drinking water of its cattle as well as the offices and other staff facilities.

Northern Serbia features ideal conditions for the operation of a biogas plant. The fertile soil and the moderate continental climate mean high crop yields for agricultural businesses. On average, 60 tons of maize silage are harvested per hectare, compared to 40 to 50 tons in Germany, depending on the location and the weather. The feed-in compensation for ecologically generated electricity from biogas amounts to 15 cents per kWh and has been fixed for twelve years.

“We are very pleased that we will ultimately be able to realise a reference project in Serbia, having successfully established a presence in the French, British, Latvian and Slovakian markets last year,” said Roel Slotman, CCO of EnviTec Biogas AG. “Like in all new markets, we believe that the plant in Serbia will be the best possible advertisement for our company.” Market studies carried out by EnviTec Biogas have shown that there are 20 businesses in Curug that are similar to the dairy farm and could benefit from a biogas plant. “Once the plant has been taken into service and runs successfully, we expect to win further contracts in Serbia. Negotiations with some prospects are already underway,” said Roel Slotman.

About EnviTec Biogas AG

EnviTec Biogas AG covers the entire value chain for the production of biogas - including the planning and turnkey construction of biogas plants as well as their commissioning. The company provides the biological and technical service, and also offers full plant and operating management. In Güstrow, in the German state of Mecklenburg-Western Pomerania, EnviTec Biogas built the world’s largest plant for the production of biogas to natural gas standards with a thermal output of 55 megawatts. In addition, the company also operates its own biogas plants. Today, the company is represented in 15 countries throughout Europe, as well as in India. EnviTec Biogas generated revenues of EUR 120 million and EBIT of EUR -0.5 million in 2009. The EnviTec Group currently has 420 employees. EnviTec has been listed on the Prime Standard segment of the Frankfurt Stock Exchange since July 2007.

Press contact:
Thomas Bolte
EnviTec Biogas AG
Tel: +49 25 74 88 88 -198
E-mail: t.bolte@envitec-biogas.de

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