Dirk Röse

Take-over of lea­ding pro­vi­der of bio­mass in the Bal­tic region

Lat­vi­an group will streng­t­hen the company’s Rene­wa­ble Ener­gy Busi­ness Unit

The Klasmann-Deilmann Group with head­quar­ters in Gees­te, Ger­ma­ny, is incre­a­sing its acti­vi­ties in the field of rene­wa­ble ener­gy and resour­ces. With effect from 18 August 2016, the Group will take over the Lat­vi­an com­pa­nies SIA AJ Ener­gy, SIA PA Ener­gy and SIA BNP, a group which spe­cia­li­ses in bio­mass tra­ding. This important acqui­si­ti­on was faci­li­ta­ted by KPMG Bal­tics in Riga.

The three com­pa­nies are lea­ding and suc­cess­ful Lat­vi­an pro­vi­ders of bio­mass, which is incre­a­singly used as a source of ener­gy and heat in the Bal­tic regi­on. The tra­ding com­pa­nies AJ Ener­gy, PA Ener­gy and BNP have well-estab­lis­hed con­nec­tions with the major pro­du­cers of wood­chips and with key cus­to­mers in the seg­ments of heat and ener­gy pro­duc­tion. “The three com­pa­nies are an excel­lent match for our acti­vi­ties in the rene­wa­ble resour­ces sec­tor,” com­men­ted Nor­bert Siebels and Moritz Böcking, Mana­ging Direc­tors of the Klasmann-Deilmann Group. “They will pro­vi­de us with direct access to the bio­mass mar­ket in Latvia.”

Klasmann-Deilmann’s cor­po­ra­te stra­te­gy for the peri­od up to 2025 inclu­des a sub­stan­ti­al expan­si­on of its busi­ness in the rene­wa­ble ener­gy and resour­ces sec­tor. Pro­duc­tion and tra­ding in sus­tainab­le ener­gy sources are expec­ted to account for a signi­fi­cant share of sales by the year 2020. “Our acti­vi­ties in this new busi­ness unit will focus on the Bal­tic regi­on,” exp­lains Siebels. “As ear­ly as for 2017, we are plan­ning con­so­li­da­ted sales of approx. EUR 7 mil­li­on with a staff of about 15. This step will gene­ra­te syn­er­gies with our other sub­si­dia­ries in Lat­via and Lit­hua­nia, not only in our core busi­ness, but also at logistics and admi­nis­tra­ti­on level.” Böcking adds: “Demand for bio­mass for ener­gy pur­po­ses is incre­a­sing and the over­all eco­no­mic con­di­ti­ons for sus­tainab­le ener­gy con­cepts are far bet­ter than in Ger­ma­ny. The take­over of the­se com­pa­nies is an enor­mous step for­ward for our new busi­ness unit.”

Klasmann-Deilmann alrea­dy began to deve­lop its Rene­wa­ble Ener­gy and Resour­ces busi­ness unit back in 2009. Sin­ce then, the Group has purcha­sed almost 3,000 hec­ta­res of land for the crea­ti­on and manage­ment of short-rota­ti­on fores­try (SRF) plan­ta­ti­ons. The fast-gro­wing tree spe­ci­es plan­ted on the­se sites, main­ly wil­lows, can be har­ve­s­ted in cycles of three or four years. Wood resour­ces from SRF are pro­ces­sed into wood­chips and used for the genera­ti­on of electri­ci­ty and heat in bio­mass power sta­ti­ons. The good cli­ma­te foot­print of SRF fuels results first­ly from the avo­id­ance of fos­sil fuels and second­ly from the fact that the cycle of growth and uti­li­sa­ti­on has no impact on the climate.


Signing the con­tract (left to right): Artis David­ni­eks (Lawy­er for PA Ener­gy, AJ Ener­gy and SIA BNP), Ainars Plaucs (Direc­tor of SIA PA Ener­gy and SIA BNP), Nor­bert Siebels (Mana­ging Direc­tor of the Klasmann-Deilmann Group), Aldis Jotiks (Direc­tor of SIA AJ Ener­gy and SIA BNP), Aivars Jurcans (KPMG, Direc­tor M&A, Lat­via), Ieva Til­le­re-Til­ne­re, Lawy­er (Depu­ty Head KPMG Law Firm, Latvia)