Three strong partners to create a bioethanol plant in Sachsen-Anhalt

- MAN Ferrostaal, EPURON and AGRAVIS Raiffeisen AG cooperate

- Investment volume of approx. 130 million Euro

Essen/Hamburg/Muenster/Hanover, February 27, 2007: EPURON, a subsidiary of Conergy AG, a company listed on the stock exchange along with AGRAVIS Raiffeisen AG and MAN Ferrostaal are jointly constructing one of the largest bioethanol plants in Germany with a planned capacity of 200,000 m³. The site will be located in Buelstringen. The three companies have finalised a cooperation contract and have scheduled construction of the plant to begin this year. They expect the production of bioethanol to be ready in the first half of 2009. The investment volume for the development and construction of this large plant will total approximately 130 million Euro. Thanks to the strongly growing bioethanol market, the economic conditions are favourable to the project.

Bundling decisive strengths

Nikolaus von Veltheim, Member of the Board at AGRAVIS Raiffeisen AG, emphasises the partners' expertise: "With EPURON we have a company with international experience in the field of renewable energies on board for the planning and financing of the plant. MAN Ferrostaal will take charge of managing the implementation phase; and as a producer of industrial plants, will also be responsible for the approval permits, design concept and turnkey construction of the plant."

EPURON and MAN Ferrostaal will develop a concept for operational management that will be responsible for the marketing and sale of bioethanol. With close proximity to BARO Lagerhaus GmbH & Co. KG, a subsidiary company of AGRAVIS, and its direct location on the Mittelland Canal, Buelstringen has an optimal infrastructure for fuel distribution.

Dr. Wolfgang Knothe, Member of the Board for Projects at MAN Ferrostaal, points out the strategic function of AGRAVIS Raiffeisen AG: "The agricultural trading company has a storing capacity of 550.000 tons here, from which it will deliver the necessary raw materials for the production of bioethanol. The long-term access to the input-materials will be assured all year round."

"All the companies involved are leaders in their respective fields, and will optimally combine their strengths in the operating company. So far, we have a model that is unique in the market, ensuring long-term success", said Nikolaus Krane, Board Member at Conergy AG and responsible for bioenergy project development at EPURON.

Great demand for bioethanol

With the creation of this plant, the companies will gain access to the bioethanol market which is growing strongly worldwide. The EU Commission, for example, is planning for biofuels to take a ten-percent share of the overall fuel market by 2020. The Biofuel Quota Law, which came into effect on 1 January 2007 in Germany, obliges the mineral oil industry to add bioethanol to petrol which has been provided to the consumers. The capacity of the plant in Buelstringen would suffice to cover roughly a quarter of the additive quantity required in Germany in 2008. Furthermore, an increase in requirements of E85, which contains 85 percent bioethanol and only 15 percent petrol, must be expected. The plant operators will profit from the increasing demand from refineries, the petrol importers, and the medium-sized mineral-oil dealers for biofuels.