Friday, 14 September 2018

Germany: 2G Energy AG receives order for hydrogen-driven CHP system

Source: 2G Energy AG, 12th September 2018

First CHP system in Germany in everyday operation with purely regeneratively produced hydrogen

Heek, September 12, 2018 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas-driven combined heat and power (CHP) systems, has received an order to deliver a purely hydrogen-driven CHP system to Stadtwerk Hassfurt GmbH. Together with the customer, 2G is thereby realizing a project that is groundbreaking in regenerative energy supply in combination with wind and solar energy. Hydrogen burns without emitting any carbon dioxide and almost without any harmful emissions at all, making it significantly more environmentally and climate compatible as a fuel than natural gas.

The higher costs incurred in the production of hydrogen to date and the problem of its availability are resolved commercially in the project through making recourse to local regenerative wind and solar energy producers. The hydrogen is produced by a power-to-gas-system located in the port of Hassfurt. This utilizes surplus electricity generated by the wind park in the adjacent Sailershäuser Forest for the electrolysis of the water. The CHP system then reconverts the hydrogen into electricity and heating in line with demand, achieving efficiencies of > 90%. The electricity from the CHP system is fed into the city's electricity grid. The heating is to be transferred to a neighboring malt factory, a school and a kindergarten via a heating grid that has yet to be constructed.

2G's hydrogen CHP systems represent an important building block to offset volatile energy production capacities through solar and wind power, making an important economic contribution to future supply security - especially given the enormous generating capacities that are to exit the grid with the phase-out of nuclear power plants by 2022 (around 13 % of production capacity) and the planned exit from coal (approximately 39 % of generation capacity). The power-to-gas method enables surplus electricity from wind and solar power to be stored in the form of hydrogen on a cost-efficient basis over long periods and within the already existing natural gas network as well as in tanks, from where it can be reconverted into electricity in response to demand. Hydrogen CHP systems thereby provide balancing energy in combination with regenerative producers.

Implementing only slight adjustments to a standard natural gas module, 2G has achieved technical success in enabling the highly efficient exploitation of hydrogen on a cost-sensitive basis. Compared to an equivalent basic motor, electric output of 168 kW is reached in hydrogen operation (natural gas: 210 kW) on a CO2-free basis. The mechanical motor efficiency is higher than that of natural gas-driven CHPs thanks to the rapid combustion of hydrogen. The utilization of standard components already makes hydrogen CHPs only slightly more expensive than a comparable natural gas-operated system.

The hydrogen modules comprise an expedient addition to 2G's existing product range and support the company in its strategy of producing generation units for both balancing and offsetting energy. The 2G hydrogen technologies are also suited to other high-hydrogen-content gases, and can be deployed without problem with variable (natural) gas mixtures.

2G company portrait

2G Energy AG is an internationally leading full-service provider of combined heat and power systems (CHP) with electric output between 20 kW and 2,000 kW, which are harnessed for the decentralised 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 systems realised, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalisation consistently implemented by 2G 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 600 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 31 countries and generated net sales of EUR 189.4 million in the 2017 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 April 2018, company founders Christian Grotholt and Ludger Gausling held a 53.3 % interest in the company, with the free float amounting to 46.7 %.

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.com