EnviTec Biogas AG, Germany’s largest biogas producer, continues to invest in expansion

Currently, EnviTec Biogas AG is running its largest investment program to date, totaling over 100 million euros, in the company’s history. “Expanding our own operations and massively increasing our energy production is at the core of our company strategy,” says Olaf von Lehmden, CEO of the medium-sized company operating globally from Saerbeck and Lohne.

The operation of the plants is either 100% managed by EnviTec itself or in partnership with agricultural partners. “Our partnerships always function on an equal footing,” adds CFO Jörg Fischer. “At the same time, tasks are clearly divided – for example, if the partner provides the location and input materials, we take care of the complete service and assume commercial management.”

“In our home market of Germany, we now have 81 plants with an annual biogas production of around 1,500 GWh per year. In the European foreign markets, we operate seven more plants with a capacity of 180 GWh per year,” continues the CEO. With the completion of the new investments started in 2023, annual biogas production is expected to increase to around 1,800 GWh/year by 2025. Currently, the share of biogas processing plants accounts for approximately one-third of this – a trend that is strongly increasing. Von Lehmden emphasizes that EnviTec is currently the largest biogas producer in Germany.

“As a versatile and leading biogas producer in Germany, we not only significantly contribute to the energy transition but also decarbonize all other energy sectors – such as the mobility sector or in the area of building energy,” says the CEO. For instance, EnviTec made a significant contribution to the decarbonization of the transportation sector with the acquisition of the BioEnergie Park Güstrow and the extensive conversion into Germany’s largest integrated bio-LNG facility, including CO2 liquefaction (LCO2). “With this proprietary facility, we are now also operating as an independent provider of climate-neutral fuel for commercial and heavy-duty transportation in the market, supplying green LCO2 and pioneering real work,” says von Lehmden. Green LCO2 is used in the food industry and will also be indispensable in hydrogen derivatives in the medium term. “Biomethanol or biokerosene, if produced from hydrogen, always require a green carbon molecule,” explains von Lehmden. Thus, EnviTec is already part of the hydrogen transition.

Urgent Appeal to Politics

In its proprietary operations, the globally operating medium-sized company has been experiencing healthy growth for years. “However, there is a lack of long-term perspectives and stability in the political framework,” says CFO Jörg Fischer. “The current declining THG quota remuneration, which has plummeted from 430 to 110 euros per ton of CO₂ in just one year, is simply being ignored,” he criticizes. This leads to uncertainty in the industry and a noticeable decrease in investments in hydrogen markets, green mobility, and also in the expansion of biogas plants, concludes Fischer. It is imperative to take immediate action. “We hope that the politicians promptly address this issue and take appropriate action,” concludes the financial expert.

Forecast and Outlook

• For the completed fiscal year 2023, a total revenue (or turnover) in the range of 400 to 450 million euros is still anticipated.
• Taking into account a one-time effect in the Energy sector, a pre-tax profit (EBT) in the range of 85-105 million euros is expected.
• The EnviTec board remains optimistic for the fiscal year 2024, despite some challenging regulatory conditions: “As we have emphasized multiple times in the past year, we may not achieve the exceptional results of 2023 in the current year. However, we will continue on the path of success in 2024 and aim to unlock further medium- and long-term growth potentials for our company group, with the help of the mentioned substantial investments,” concludes CFO Jörg Fischer.
• The full annual report for the fiscal year 2023, including a detailed forecast for the current fiscal year, will be released on May 15, 2024.

For more information, please visit: https://www.envitec-biogas.com