Internationalisation of EnviTec Biogas bearing fruit

First contracts signed in Latvia and Slovakia with a volume of EUR 10 million

Lohne, 13th August 2009 – Eastern Europe is beginning to discover the benefits of biogas as an environmentally compatible and local source of energy. As the industry leader, EnviTec Biogas benefits from this trend. Based in Lohne, the company has expanded throughout Europe. The success of this strategy is not least reflected in the fact that the company has just signed the first contracts with a combined volume of approx. EUR 10 million in Slovakia and Latvia. “We invested in our internationalisation at an early stage. It takes time to develop new markets, but now our efforts are bearing more and more fruit,” says CEO Olaf von Lehmden.

The Latvian contract has been awarded by an pig farm operator, who has ordered two plants with a rated electrical output of 1 MW each. The biogas plants are to be erected on the farm near Liepaja. The agricultural company will use liquid manure and renewable resources as input materials. The heat produced in the process will be used to heat the pigsties. The Baltic state is one of the EU countries that cannot satisfy their electricity needs with their own power plants. The shortfall is covered, for instance, by the Ignalina nuclear power plant in Lithuania. The EU Treaty requires the latter to be taken off the grid
at the end of 2009, though. Given that Latvia is also dependent on gas imports, the government is looking for ways of establishing its own energy supply. Apart from fossil sources, the country aims to use primarily renewable energy sources. “Biogas can be produced day and night in any weather,” explains Olaf von Lehmden. “You can use it to generate electricity and heat or replace natural gas. This makes biogas the ideal element for an independent energy supply. Needless to say, this also applies to Latvia.”
To produce biogas, you can use not only liquid manure and renewable resources but virtually all sorts of organic matter. In recognition of these benefits, the Latvian government subsidises biogas with a feed-in compensation of 15 to 25 euro cents per KWh. EnviTec Biogas will also build two biogas plants in Slovakia. The plants with an electric output of 1 MW each have been ordered by an investor and will be erected near Vrbina and Novy Dvor. Construction is scheduled to start before the end of August. Liquid manure and energy maize will be used as input materials. A compensation of 15 euro cents per
KWh makes biogas an attractive alternative also in Slovakia. “The good framework conditions in Latvia and Slovakia for the production of biogas mean attractive long-term revenues for the operators. We therefore expect more orders to be placed by customers from both countries,” says Roel Slotman, Export Manager at EnviTec Biogas.

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 the full plant and operating management. In Güstrow, in the German state of Mecklenburg-Western Pomerania, EnviTec build the world’s largest plant for the production of biogas to natural gas standards with an thermal output of 55 megawatts. In addition, the company also operates its own biogas plants. Today, the company is represented in more than 15 countries throughout Europe and as well in China and South Korea. In 2008 EnviTec generated revenues of EUR 101 million and EBIT of EUR 3.2 million. The EnviTec Group currently has about 350 employees. Since July 2007 EnviTec is listed on the Prime Standard segment of the Frankfurt Stock Exchange.

Special event: 8th EnviTec Biogas Conference on 8 September 2009 at the Umweltforum in Berlin. For further information, check www.envitec-biogas.de

Investor Relations:
Olaf Brandes
EnviTec Biogas AG
Tel: +49 44 42 80 65-118
E-Mail: ir@envitec-biogas.de

Press Contact:
Fabian Lorenz, Grit Pauli
HOSCHKE & CONSORTEN Public Relations GmbH
Tel: +49 40 36 90 50-56 /-31
E-Mail: f.lorenz@hoschke.de; g.pauli@hoschke.de