EnviTec Biogas used its Annual General Meeting to signal a decisive strategic shift toward biomethane production while acknowledging that regulatory headwinds are dragging on earnings despite steady operational performance.

 

Executive Board and Supervisory Board centered discussions on the company’s repositioning strategy, recent success in a German Federal Network Agency (Bundesnetzagentur) tender, and the 2025 financial performance alongside a forward-looking investment push.

 

Shareholders agreed to retain earnings in full and approved the proposal not to pay a dividend for fiscal year 2025.

 

While the company posted higher total output and stable operations, consolidated earnings declined in 2025. Management attributed the drop primarily to regulatory changes, including the German legislator’s abolition of double counting for greenhouse gas quotas, as well as weaker performance in Plant Construction during the first half of the year.

 

The pressure is already visible in early 2026 figures. In Q1, EnviTec reported total output of EUR 92.4 million (Q1 2025: EUR 85.3 million), but earnings before taxes fell sharply to EUR 4.1 million from EUR 8.5 million a year earlier, in line with expectations following the policy change.

 

"Despite a challenging market environment and regulatory headwinds, fiscal year 2025 has shown that our business model has been reinforced by the strategic investments of recent years. This is reflected in results above those of earlier periods and in the continued strength of our internal financing capacity,” said Jörg Fischer, Chief Financial Officer. 

 

“In view of the current short-term impacts, suspending the dividend gives us the financial flexibility required to rigorously advance the further development of our company across all markets and segments. Overall, we are optimistic for the coming years.”

 

Chief Executive Officer Olaf von Lehmden highlighted momentum in international biomethane markets and pointed to a key policy win: success in the EEG tender process, which secured follow-up subsidies for a significant portion of the company’s power portfolio—around 16 MW of electrical output. 

 

The support extends operational lifetimes by up to 12 years for existing installations and up to 20 years for new plants, locking in longer-term revenue stability.

 

The company is now accelerating its transition away from electricity-focused biogas production toward biomethane. EnviTec plans to convert existing plants and expand biomethane output significantly by 2031, supported by planned investments of around EUR 100 million between 2026 and 2029, including equity-accounted investments. 

 

These funds will target both continued EEG plant operation under new remuneration structures and conversions from electricity generation to gas upgrading.

 

Despite improved greenhouse gas quota prices and the stabilising framework of RED III through 2040, management warned that regulatory uncertainty remains a key risk. A draft EU gas market directive implementation could allow biomethane plants to be disconnected from the grid after just 10 years, raising concerns about investment security.

 

“Reliable and technology-neutral regulatory conditions for gas grid connections are essential for the further expansion of green gases,” says Olaf von Lehmden. 

 

“At the same time, we see significant opportunities for biomethane in the planned Building Modernisation Act (GMG), especially with the proposed ‘bio-stairs’ mechanism. The biomethane volumes currently under discussion in the public debate can easily be supplied by the German industry, provided the required planning certainty regarding grid connections is established.”

 

Looking ahead, EnviTec expects total output for fiscal year 2026 between EUR 330 million and EUR 370 million, with earnings before taxes forecast at EUR 5 million to EUR 15 million. The company anticipates a return to growth in 2027, driven by improved plant construction demand, expansion of services, and rising biomethane production.