2G Energy AG receives next hydrogen order from Japan for the delivery of three H2 systems

2G Energy AG receives next hydrogen order from Japan for the delivery of three H2 systems

• New order intake picks up strongly in March and exceeds prior-year level significantly (EUR 25.9 million, +92 %)
• Sales increase by approx. 40 % to around EUR 68 million in first quarter (previous year: EUR 48.7 million)
• Management and Supervisory boards propose dividend increase of 12 % to EUR 0.14 per share

Heek, April 27, 2023 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) plants, received another order for the delivery of a total of three hydrogen-fueled CHP plants from Japan last month. The latest order already represents the sixth hydrogen-fueled CHP order (out of a total of eight plants) from Japan.

"We see this order as the next proof of the great interest in our hydrogen technology, not only in Japan, but in the Asian CHP market in general," as CTO Frank Grewe stated. "Japan has been playing a pioneering role in terms of the production and use of hydrogen as an energy source for several years and had already developed an ambitious national hydrogen strategy in 2017 – we are all the more pleased to be able to successfully position our H2 technology on this market." 

2G's H2 power plants are being deployed as part of the "Kashiwazaki Clean Hydrogen/Ammonia Project" by INPEX, Japan’s largest exploration and production (E&P) company. In addition to its core business of oil and natural gas production, INPEX aims to expand a total of five new business areas in order to trim its net CO2 emissions by 30% by 2030 and become CO2 neutral by 2050.

These business areas include the production of hydrogen, among other activities. In this context, INPEX will set up a demonstration plant in the Hirai area of the Higashi-Kashiwazaki gas field in the city of Kashiwazaki, and then build a blue hydrogen production plant, tapping INPEX's natural gas fields and existing infrastructure to produce hydrogen on a commercial scale by around 2030.

2G expects delivery of the three agenitor 412 H2 CHP units in March 2024, while the overall project is scheduled for completion by August 2025.

New order intake takes off in March

In the past quarter, 2G recorded a total new order intake of EUR 41.0 million, around 24 % below the previous year’s level (EUR 53.6 million). The temporary delay in new order intake, which 2G had already reported in its corporate news release on January 26, persisted in January and February.

In March, the unbroken brisk customer interest finally converted into a high level of new order intake amounting to a total of EUR 25.9 million (March 2022: EUR 13.5 million, +92 %). “The wait-and-see attitude that was evident in Germany and Europe over the winter half-year due to general uncertainties is clearly lifting, which is particularly evident in our project pipeline for the coming months and beyond, which is filled to above-average level”, comments 2G CEO Christian Grotholt. "In addition to the three plants for the project in Japan, we were able to successfully market another H2 plant in southern Germany, so sales opportunities continue to increase also nationally."

The composition of new order intake in the past quarter is as follows:

* Rounding differences arise.

Q1 net sales rise to over EUR 40 million

Preliminary net sales figures, which have not yet been finally consolidated, show a significant increase in net sales in the first quarter to around EUR 68 million (previous year: EUR 48.7 million). Following the increase in total operating revenue in the past financial year to around EUR 339 million as a result of an increase in Work-in-progress of EUR 26.0 million, it was possible to finalize a number of these projects in the first quarter.

Dividend of EUR 0.14 per share proposed

Based on the EUR 12.4 million of unappropriated profit generated in the 2022 financial year, the Management and Supervisory boards have authorized a proposal to the AGM to be held on June 13, 2023 for it to approve an 12 % year-on-year increase in the dividend to a level of 14 euro cents per share for the past financial year.

Annual Report 2022 now available for download

The audited consolidated financial statements, the 2022 annual report and a multi-year overview of key figures, are available for download in German and English at https://2-g.com/en/investor-relations/financial-publications.

2G company portrait

The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation as well as digital grid integration, the company offers comprehensive solutions in the growth market for highly efficient CHPs. After-sales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing hydrogen, natural gas, biogas as well as other lean gases. Worldwide, more than 8,000 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities.

2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional power conversion methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. As a consequence, 2G’s customers derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant technology for hydrogen, natural gas and biogas applications, as well as in specific software development. Moreover, in the energy revolution’s future electricity market design, the digitalization that 2G consistently implements 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.

2G employs more than 850 employees at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 312.6 million in the 2022 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange.

2023 calendar dates
May 15-16   Spring Conference, Frankfurt
May 25   Q1 key figures and business trends
June 13   Ordinary AGM, Ahaus
September 04  Key figures H1 2023 and business trends
September 07  Publication of half-year report 2023
November 27  Q3 key figures and business trends
November 27-29  German Equity Forum, Frankfurt

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