Energy production/Biogas

Since 2007, the generation of bioenergy has been the third business activity of KTG Agrar. We currently operate biogas plants with a total electrical output of approx. 16 MW. A heat concept is in place at the locations, on the basis of which the heat produced can be used virtually throughout the year.

The KTG Group pursues an integrated strategy, which links the individual business segments and creates synergies. A good example of this is the production of biogas. The required renewable resources are grown on land areas that are close to the biogas plants and managed by the company itself, which means that the company is not dependent on suppliers. In addition to energy maize, we increasingly use residues from the farming of food crops such as grass and straw, which could not be used in the past. Moreover, the cultivation of intercrops creates huge synergies for the whole Group. We first grow rye or barley for the production of food, harvest it in the early summer and then sow millet for the production of energy. This way, we have two harvests per year, increase the utilisation rates of our machines and protect the soil, as unused land may be damaged as nutrients are washed out and the soil erodes. Finally, the residual matter is used as fertiliser for the cultivation of food crops.

On the output side, the sale of electricity and heat generates reliably plannable revenues and high margins. The regular cash flow allows us to advance finance the seasonal farming activities with less debt capital and, hence, lower interest expenses. However, the main advantage is that fermentation residues produced in the process are an excellent natural fertiliser.