Augsburg location to become competence center for gas engines

• MTU/MDE´s corporate alliance will concentrate the entire business for gas-engine-based decentralized power stations in Augsburg
• MDE: Company will remain independent and maintain its brand
• mtu´s sales and service network to ensure global presence, MDE to provide its systems expertise

The acquisition of the Augsburg-based MDE Dezentrale Energiesysteme GmbH by MTU Friedrichshafen GmbH on January 1, 2006 forms a solid basis for future success: Thanks to the purchase, mtu can now advance its growth strategy for decentralized power generation together with its subsidiary and invigorate its gas engine business. For this purpose, the MDE head office in Augsburg will be expanded into a competence center for gas engines where the entire business with cogeneration power stations will be concentrated.

“This way we can offer complete energy systems from one single source in the growing market for cogeneration power plants” explained Volker Heuer, President and CEO of MTU Friedrichshafen. “We will thus increase our systems expertise and also expand our technological leadership with environmentally compatible energy systems which can also be operated with biogases and other special gases.“

“Our respective fields of expertise complement each other perfectly“, says Klaus Deleroi, Director Sales of MDE and Head of the Application Center for Gas Engine Systems at MTU Friedrichshafen GmbH. “MDE has been involved in the gas-engine systems business for more than 25 years whereas mtu has almost one century of expertise in diesel-engine technology and will contribute its global sales and service network.” MDE is a leading provider of gas engines and energy systems with electric power outputs from 100 to 400kW; with mtu´s Series 4000 gas engines, the power range is rounded up to just under 2 MW. According to Delroi, “the market for gas engines offers an enormous potential for growth. This is made possible, on the one hand, by framework conditions such as the promotion of cogeneration technology, especially in Europe, but also by improved access to the natural-gas supply which offers operators in Asia, for example, an alternative to diesel fuel.“

Exclusive system completion in Augsburg

To increase market presence and win over new segments, the strengths of both companies are now concentrated in Augsburg: The MDE location on the Lech river will become a competence center for gas engines and will be responsible for the future development and sale of different application alternatives (e.g. public swimming pools or biogas plants) for all gas-engine systems as well as the related spare-parts supply and service. Furthermore, the production of MDE Series 400 gas engines and systems which are based on them will take place at MDE. MDE Series 400 gas engines are available as 6 and 12-cylinder versions for operation with natural gas, biogas and special gases.

Development of Series 4000 for operation with biogas and special gases

Only the larger Series 4000 engines will continue to be built in Friedrichshafen where this series will also be further developed. The integration of these engines into power generation plants (known as packaging) as well as sales and service will be assigned to the Augsburg location in the future. The complete range of Series 4000 engine versions is to be available for natural-gas operation by early 2007. Currently, the 12 and 16-cylinder versions can be operated with natural gas. Coming up soon will be the 8-cylinder version which will be followed by the 20-cylinder model a few months later. Additionally, the entire engine series is being developed for use with biogas and special gases. The gradual introduction of special-gas versions is planned for completion by 2009 at the latest.

Sales synergies to ensure greater market share

There will also be synergies in sales activities: mtu´s global network will make it possible to offer power generation systems based on gas engines on all continents. For their part, mtu personnel will benefit from MDE´s expertise when it comes to complete systems for gas applications. “So far we have sold a total of 4,000 engines and 2,000 energy modules“, said Hans-Peter Gügel, Managing Director of MDE. “We want to share our knowledge with mtu´s sales and service personnel. “As part of the gas engine strategy, linking the sales networks is to help increase the market share for decentralized energy systems to more than 15% by 2015. Because of its worldwide reputation as a gas engine packager, MDE will continue to operate under its current brand name. “MDE is a synonym for sophisticated energy systems, and we are looking forward to using our name as a contribution to global marketing“ added Gügel.