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BioConstruct extends good position in Europe

Optimistic for 2017: Strengthens wind power business segment in Germany

BioConstruct GmbH increasingly focuses on Europe for new construction of state-of-the-art biogas plants. Among other things, the enterprise, headquartered in Melle, in the German state of Niedersachsen, will further intensify its activities in the wind energy business segment.

Thus the leading provider for planning and construction of turnkey biogas, wind energy, and photovoltaic projects in Europe responds to the constantly changing economic environment. Through the new amendment of the Renewable Energy Act (EEG), as well as the low prices for oil and gas, operation of new biogas plants in Germany is no longer economically viable.

"We have made the right decisions for the future in an increasingly difficult market environment and are well-positioned", states Managing Director Henrik Borgmeyer, who is optimistic with regard to 2017. With construction of six biogas plants in Great Britain, BioConstruct has worked out a strong position with good references in the current fiscal year in the United Kingdom, and has established an effective basis for further projects. The plants have a total installed capacity of 28 megawatts (MW). Moreover, with the planning and implementation of projects in Leffincourt (France) and Sochos (Greece), the firm has entered two promising additional European markets. The French biogas plant was constructed for an agricultural customer and was successfully commissioned in mid-November. With a capacity of 25 kW the combined heat and power plant processes a total of 17 tons of crushed maize kernels, cattle manure, liquid pig manure and sugar beets per year. Since late summer 2016 the l combined heat and power plant in Greece with a capacity of 999 kWel has obtained energy from up to 36,600 tons of cattle slurry and maize silage, a year. BioConstruct planned and built the turnkey plant in Greece for a project development company.

The biogas plants should not remain isolated cases. In both countries negotiations are already underway for additional plants. In France discussions are progressing concerning the planning and implementation of at least one additional project in 2017; in Greece a contract for construction of a plant has already been signed, three other plants are in the planning phase here. Turkey is another interesting market. BioConstruct has had an office and a sales employee in Istanbul since 2014. Since then, the Turkish market has developed well for the company with one biogas plant a year. Further development remains to be seen at this point in time.

However, BioConstruct has set a course for the future that extends beyond biogas plants. The wind energy segment is again gaining regional significance.  Thus, among other projects, the enterprise has taken on project development and project management, extending to commissioning, including infrastructure and grid connection, for the wind park in Gerde and the wind park in Badbergen in the Osnabrück district.

Overall Borgmeyer expects a good development in 2017. Also, because in the coming year several larger projects will be concluded.  However, the political uncertainties, as well as continuing international conflicts in the Ukraine and elsewhere, as well as debt and banking crises in Greece and Italy remain challenges. The exchange rate of the British pound, which came under pressure in fiscal year 2016 as a result of the British people's Brexit vote also had effects on the result.

About BioConstruct

BioConstruct GmbH, headquartered in Melle (Niedersachsen), Germany, is a leading provider for planning and construction of turnkey biogas, wind energy, and photovoltaic projects in Europe. Since its founding in 2001, the enterprise has implemented more than 300 renewable energy projects in Germany, Great Britain, Greece, Italy, Czech Republic, Latvia, Estonia, Turkey and the Netherlands. With extensive expertise in plant engineering, project development, process engineering, financing, funding and approval, BioConstruct works side-by-side with its partners from the feasibility study, to technical planning, construction of the plant and commissioning, and after-sales service. The general contractor for renewable energy develops custom-tailored complete solutions for farmers, project developers, municipalities, co-ops, public utilities, and landowners. In addition, BioConstruct operates 18 of its own plants. The company has approx. 90 employees at the headquarters site in Melle, and earned turnover of approx. €60 million in 2015.