MDE and mtu: Cooperation on Decentralized Energy Systems

• mtu obtains a stake in MDE, the Augsburg Combined Heat and Power (CHP) Systems Manufacturer
• Complementary product range for gas engines, major components and complete combined heat and power (CHP) systems
• Environment-friendly electricity and heat generation with high market potential

mtu obtains a stake in MDE, the Augsburg Combined Heat and Power (CHP) Systems Manufacturer

MTU Friedrichshafen, a DaimlerChrysler AG company, has acquired a 1/3 stake in the CHP Systems Manufacturer MDE. A joint venture agreement in the field of gas engine driven energy systems complements the stake, whose acquisition was signed on January 9. The joint venture covers the development, production and marketing of gas engines, generator sets and CHP systems. MDE can fall back on Mercedes-Benz basic diesel engines as well as mtu's gas engines from the 2000 and 4000 series.

Complementary product range for gas engines, major components and complete combined heat and power (CHP) systems

mtu and MDE will be offering a complementary product range with gas engines, generator sets and combined heat and power systems. Both sales organizations with their own brands will be involved in the marketing. The plan is to broaden the cooperation further.

The joint venture will greatly improve the competitive strengths of both companies in the area of gas engines and CHP systems. Now both can offer a much broader product range than before. With the mtu engines, MDE will be able to extend its performance range to up to 1500 kW per unit thus covering all relevant output ranges in this market segment. Moreover, the joint venture will give MDE the chance to greatly step up the internationalization of its business activities. Use of the mtu distribution network will give MDE further access to the markets in Europe, Asia and North America.

With the addition of MDE, mtu will be gaining an experienced partner in the field of decentralized power generation which will enable it to continue to expand its product offensive in the field of gas engines. In this process, mtu will be making use of MDE's technical know-how on anything from gas engines to turnkey systems.

Pooling the available resources in development, production and marketing will enable the company to reach the best possible competitive position on the world market. In Germany the Augsburg-based MDE is the market leader for decentralized energy systems with gas engines in the power range of 100-400 kW. The company, which emerged as part of MAN AG in 1986 and has been active on the market as an independent company since 1998, was one of the first German suppliers of CHP systems and thus possesses a high level of expertise in this technology. MDE has installed 1,600 CHP modules in Germany alone. There are over 3,600 MDE gas engines in operation worldwide.

Environment-friendly electricity and heat generation with high market potential

Combined heat and power means energy production that is especially friendly to the environment. CHP systems not only generate electric current, but also utilize the heat generated by the engine. In this way, utilization of over 90% can be attained. Systems such as this are used in the industrial and municipal fields, e.g. in hospitals, indoor swimming pools, and large building complexes, as well as in sewage plants, waste dumps and bio-gas systems.

Such decentralized combined heat and power systems are especially designed to reduce carbon dioxide (CO2) in energy production. The amounts involved are considerable: through the systematic extension of CHP systems a reduction of carbon dioxide emission by 23 million tons per year in Germany could be achieved by the year 2010.