Capstone Media Events
Greenvironment CEO Issues Letter to Shareholders and Outlines 2011 Strategy for Future Growth
Berlin, 3rd February 2011 – Greenvironment plc, a leading technology specialist in the use of innovative microturbine technology in electricity generation from biogas and natural gas, today issued a shareholders letter, which will be posted to its website.
The text of the letter follows:
February 3, 2011
Greenvironment made great progress in achieving its objectives for 2010. During the past 12 months we focused our attention on strengthening our position in the marketplace by providing state-of-the-art combined heat and power producing plant technology based on microturbines that meets the customers’ demands and by offering innovative solutions that serve the growing decentralized energy field. Greenvironment's priority for 2010 was to establish the Company as a leading technology specialist in the emerging power generation industry for natural gas and biogas applications - focusing on initiatives to capture market share and expanding into Eastern Europe, thus setting the foundation for long-term growth. As a result, several key developments and milestones were achieved during 2010, including:
• Completion of listing the company on the Frankfurt Stock Exchange whereby we gained access to the capital markets;
• Formation of a 50/50 Joint Venture in the Czech Republic with strong local partner Gascontrol společnost s r.o. (www.gascontrol.cz) for the roll-out of decentralized microturbine power plants in the Czech Republic and Poland – the short-term goal of the JV is to commission 4.5MW of plants in 2011;
• Successful commissioning of the first microturbine plant in the Czech Republic through the Gascontrol JV, a 65kW plant in Havirov, and the first large order for a 800kW plant on the same site;
• Greenvironment GmbH, a 100% subsidiary of Greenvironment plc and the main operational arm of the Company, was ranked as a ‘Top 100’ most innovative medium-sized companies in Germany and was decorated by Lothar Späth;
• Signing of a long-term industrial cooperation agreement with financially strong Finnish defence group Patria (www.patria.fi), owned by the State of Finland (73%) and EADS (27%), for the installation and operation of environmentally friendly microturbine CHP plants in Poland. The goal of the partnership is to install 20MW of decentralized capacity by 2015;
• Receive of first large order in Poland for a 1000kW microturbine biogas plant in Klepsk;
• Entering into a strategic development contract with WELTEC BIOPOWER (www.weltec-biopower.com), the world market leader in the production of stainless steel biogas plants, and receive of an order for the first installation of a microturbine plant in the field of biomethane upgrading – a 600kW CHP unit at Barsikow. This offers Greenvironment an excellent opportunity to break into the fast-growing market segment of biogas treatment, with up to 5MW of sales with WELTEC alone by 2012;
• Improvements on the Company's balance sheet;
• Greenvironment fleet of plants (in operation and under construction) in 2010: 69 microturbines on 28 sites with a total installed power of 7.14MW
• The sales pipeline of projects at the end of 2010 stood at 23 million Euro.
The ability to introduce new solutions and significantly grow sales is a testament to our long-held strategy of delivering innovative technology and executing a focused plan to transition the market to microturbine technology. This allowed Greenvironment to further differentiate itself from any other company in the industry.
Moving forward in 2011, we are looking to build on these milestones and execute our plans to be the leading technology specialist in the decentralized energy industry and to thereby improve shareholder value for our investors.
Strategic initiatives for 2011 include:
• Formation of further subsidiaries and JVs in Poland and Romania – our network of industrial partners and customers is growing rapidly in these less developed energy markets;
• Increase sales in both the biogas and the natural gas sector - projected sales of approximately 20 MW for the fiscal year 2011;
• Our clear focus will be the use of 200 kW microturbines utilizing air bearing that means these turbines do not use any oil or cooling water. Depending on the application, these turbines provide 200 kW of electrical power and 345 kW of heat, have an electrical efficiency of 33.0% and a total efficiency of 91.9% and have a lifespan of at least 10 years.
• Intensify our long-term cooperation with WELTEC BIOPOWER - sales potential of up to six 800 kW microturbine systems by 2012;
• Execute new cooperation agreements with strong partners in Germany and Eastern Europe, including further local utilities;
• Accelerate growth plans - targeted expansion into new Eastern European countries based on local partnerships;
• Explore opportunities to exploit mature gas fields in Romania and other countries – the high availability and reliability, and remote monitoring and control capabilities of microturbines make them ideal for this application;
• Introduce and sell our self-developed SCADA (Supervisory Control and Data Acquisition) software for remote monitoring to third parties;
• Launch a 20 million Euro project financing fund offering investors an efficient way to invest in the renewable energy asset class that has historically provided steady cash flows with tax advantages;
• Accelerate our “build, own & operate” business model in joint ventures with local municipal utilities in Germany and Eastern Europe;
• Move from the Open Market of the Frankfurt Stock Exchange to the Entry Standard supported by ICF Kursmakler AG, our Designated Sponsor, which will increase our investor visibility.
We are excited about the opportunities in the year(s) ahead for Greenvironment. Our pathway and optimism is fueled by our understanding that the catalyst behind growth in the biogas and natural gas field is driven by innovation and execution - concepts that have been at the forefront of our efforts since day one. With that in mind, we will continue to take steps towards expanding our market, and, when appropriate, will work with select partners on a broader range of applications.
Looking ahead to 2011 and beyond, we see strong demand for our products and expect to grow revenue and market share to levels indicative of Greenvironment's emerging leadership in the industry. We expect to file our annual audited financial statements for the current fiscal year ending February 2011 by May this year. BDO AG Wirtschaftsprüfungsgesellschaft was appointed as our auditing firm.
I would like to offer my sincere thanks to all our employees, customers, and shareholders for their tremendous ongoing support. We look forward to updating you on our progress toward achieving our goals.
Chief Executive Officer
Greenvironment is a European company active in the decentralized energy generation market and plans, builds and operates cogeneration heat and power plants (CHP) utilising microturbine technology. The company offers CHP plants in a power range of 30 kWel to 1 MWel and is a market leader in the use of innovative microturbine technology in electricity generation from biogas and natural gas.
Microturbines benefit from high availability, low maintenance requirements, low emissions, favourable EEG and KWKG bonus compensation and flexible heat utilization. All Greenvironment CHP plants are operated by a highly efficient centralized process management system at the operations centre in Berlin. See also: www.greenvironment.com.
For further information:
CEO Greenvironment plc
Tel.: +49 (0)30 311 6712 30
Fax: +49 (0)30 311 6712 59
This press release contains forward-looking statements based on beliefs of Greenvironment management. When used in this press release, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. Such statements reflect the views of Greenvironment as of the date made with respect to future events and are subject to risks and uncertainties. Many factors could cause actual results to be materially different from those projected here, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Greenvironment disclaims any intention or obligation to update these forward-looking statements.