2G Cenergy to build biogas system manufacturing facility in Fla.
Northeast Florida will be the home of a biogas combined-heat-and-power (CHP) system production facility. The 2G Cenergy Power Systems Technologies Inc. manufacturing plant location was chosen based on a number of factors, according to Michael Turwitt, president and CEO of the company.
“Last year was very successful in 2G’s home market (Germany and Europe) because the company expanded its production capacity in 2009 and 2010,” Turwitt said. “Because of the high demand for 2G’s products, and the higher production capacity, 2G was able to increase sales and production.”
Now, Turwitt and his team hope to find the same success in the North American biogas market, and business in 2011 was an indication that they will. The module design, which includes a biogas conversion technology housed within a CHP system, was introduced in the U.S. in 2009. The company began to receive orders in 2010 and 2011, all of which helped lead to the decision of building a factory in the U.S.
According to Turwitt, 2G is the only manufacturer offering the all-in-one biogas modules in the U.S. “Traditionally all North American customers only had a choice of applying simple gas gensets, and the mechanical CHP portion was added separately,” he said. “Because no modular biogas CHP systems were available, customers very often had to get something custom built or individually containerized.
In the last three years, the company has installed roughly 2300 biogas CHP systems, mostly at dairy and livestock farms, municipal waste management facilities, waste water treatment plants and organic waste disposal sites. Projects have been in several U.S. states in the Midwest, Northeast and Northwest, as well as the Carolinas.
The benefits of the Florida facility will help the company reduce the unpredictable exchange rate risks, while reducing lead times for modules. “It has significant logistical advantages and also saves transport cost,” Turwitt said. He added that the company is adding a significant value to the U.S. economy through job creation and economic growth.
Turwitt also said he sees a bright future for both the manufacturing facility and biogas industry in the U.S., pointing to a high demand coupled with clear momentum in the biogas market. “The U.S. manufacturing facility is a very important milestone for the 2G Group. The company decided to establish its first foreign manufacturing plant in the U.S. simply because this is a large market with endless potential, especially regarding biogas and bioenergy in general.”
The manufacturing facility is in a commercial park in St. Augustine and measures nearly 60,000 square feet. The plant site is 10 acres, and when operational, will employ 125.