KTG Agrar AG passes 20 MW biogas mark
- More biogas plants with over 10 MW already under construction
- Clearly more than 30 MW to be on line in 2012
- EEG 2012 remains safe foundation for investments
Hamburg, 28 November 2011 - KTG Agrar AG (ISIN: DE000A0DN1J4) continues to expand its biogas capacity significantly. With several new plants connected to the grid over the past days, the company has passed the 20 MW mark. This means that KTG Agrar meanwhile produces environmentally friendly electricity for some 34,000 households - compared to only 28,000 households in mid-2011. A large number of plants with a combined capacity of over 10 MW are under construction. "Thanks to the mild start to the winter, we can still work at full capacity on the construction sites," said Dr. Thomas Berger, KTG Board member in charge of the biogas segment. "We have therefore begun to build plants that were originally planned for 2012, which means that we can take them on line earlier next year." KTG Agrar's production capacity is expected to rise to clearly over 30 MW in 2012.
More than 35,000 hectares of farmland make KTG Agrar one of Europe's leading agricultural producers. Apart from growing organic and conventional produce such as wheat, maize and rapeseed, the production of environmentally friendly biogas energy has been the third pillar of the company's business since 2007. KTG Agrar has exploited the advantages arising from the combination of farming and renewable energy production from the very beginning and continuously increased the use of intercrops and waste. Moreover, the company has efficient heat concepts in place at all locations. On the one hand, the heat is used to heat its own buildings and to dry the grains; on the other hand, it is supplied to nearby private homes and businesses - at low cost and in a carbon-neutral way. In Dersewitz, Mecklenburg-Western Pomerania, for instance, KTG customers pay five euro cents per kilowatt hour of biogas, which is far less than they would pay for gas or oil. KTG Agrar meanwhile supplies some 1,000 households with green energy.
By using intercrops and heat concepts, KTG Agrar already meets the new requirements of the amended German Renewable Energy Sources Act (EEG), which will come into force in 2012. This is why the company will continue its profitable growth in the biogas segment. Apart from the 10+ MW already under construction, another 9 MW is at the planning or approval stage. In the expansion of its biogas activities, KTG Agrar benefits from the corporate bonds issued by the company. "Far more than one year passes between the start of planning of a biogas plant and its operation under full load. The successful changeover to medium-term financing not only means that we have reduced our interest expenses but also that we do not have to enter into negotiations with banks for every single plant. This saves a lot of time." says Siegfried Hofreiter, CEO of KTG Agrar AG. As soon as the biogas plants are taken into service, they are financed under long-term project loans.
He adds: "We are optimistic about the future and will continue to invest in farmland and biogas plants. As the compensation for the production of clean energy is guaranteed for 20 years under the EEG, we can say already today that we will continue to increase both sales revenues and earnings in the coming years."
About KTG Agrar:
With cultivable land of around 35,000 hectares, KTG Agrar AG is one of the leading producers of agricultural commodities in Europe. As an integrated supplier, the company produces agricultural commodities and renewable energy and food. The Hamburg-based company's core area of expertise is the organic and traditional cultivation of market products such as cereals, maize and rapeseed. For organic market products KTG Agrar is the European market leader. The company mainly produces in Germany but has also operated production in the EU full member state of Lithuania since 2005. The third mainstay is the production of bio-energy. At present, KTG Agrar operates biogas plants with a total capacity of around 20 megawatts. As a result of the takeover of Frenzel Tiefkühlkost in 2011, KTG has expanded the value chain by the production of food. In the year In the year 2010, KTG achieved a total output of EUR 70.8 million and EBIT of EUR 13.4 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and has currently about 400 employees. Further information can be found at www.ktg.ag.