en.Wedoany.com Reported - EnviTec Biogas has outlined its strategic shift towards biomethane production at its Annual General Meeting. The company acknowledged that while operational performance remains solid, regulatory headwinds continue to impact profitability.
During the meeting, the Executive Board and Supervisory Board presented the company's repositioning strategy, recent results in tenders from the German Federal Network Agency (Bundesnetzagentur), 2025 financial performance, and forward-looking investment plans. Shareholders agreed to retain all earnings and approved a proposal to distribute no dividends for the 2025 fiscal year.
In 2025, despite higher total output and stable operations, consolidated earnings declined. Management primarily attributed this to regulatory changes, including the German legislature's elimination of double counting for greenhouse gas quotas, as well as weaker plant construction business in the first half of the year. This pressure has already been reflected in early 2026 data. In the first quarter, EnviTec reported total output of €92.4 million (compared to €85.3 million in Q1 2025), but pre-tax profit fell to €4.1 million from €8.5 million in the same period last year, in line with expectations following the policy changes.
Chief Financial Officer Jörg Fischer stated that despite a challenging market environment and regulatory headwinds, the 2025 fiscal year demonstrated that the company's business model has been strengthened through strategic investments in recent years. This is reflected in higher performance compared to earlier periods and continued strong internal financing capabilities. Given the current short-term impacts, suspending dividends provides the company with the necessary financial flexibility to rigorously pursue development across all markets and segments. Overall, the company is optimistic about the coming years.
Chief Executive Officer Olaf von Lehmden highlighted the momentum in the international biomethane market and pointed to a key policy victory: success in the EEG tender process secured follow-up subsidies for the majority of the company's power portfolio (approximately 16 MW of electrical output). This support extends the operational life of existing plants by up to 12 years and new plants by up to 20 years, thereby locking in long-term revenue stability. The company is now accelerating its transition from electricity-focused biogas production to biomethane. EnviTec plans to invest approximately €100 million (including equity method investments) between 2026 and 2029 to retrofit existing plants and significantly expand biomethane production by 2031. These funds will be used to continue operating EEG plants under the new compensation structure and to shift from power generation to gas upgrading.
Although greenhouse gas quota prices have improved and the RED III framework is stable until 2040, management warned that regulatory uncertainty remains a key risk. The draft implementation of the EU Gas Market Directive could allow biomethane plants to disconnect from the grid after just 10 years, raising concerns about investment security. Olaf von Lehmden stated that reliable and technology-neutral regulatory conditions for gas grid connections are crucial for the further expansion of green gases. At the same time, the company sees significant opportunities for biomethane in the planned Building Modernization Act (GMG), particularly the proposed "bio-ladder" mechanism. The biomethane volumes currently discussed in public debate can be easily supplied by German industry, provided planning certainty regarding grid connections is established.
Looking ahead, EnviTec expects total output for the 2026 fiscal year to be between €330 million and €370 million, with a pre-tax profit forecast of €5 million to €15 million. The company anticipates a return to growth in 2027, driven by improved plant construction demand, service expansion, and increased biomethane production.
