EQS-News: CGift AG becomes DWK Deutsche Wasserkraft AG and undergoes strategic reorganisation

CGift AG becomes DWK Deutsche Wasserkraft AG and undergoes strategic reorganisation

- Annual General Meeting approves change of name and votes 100 per cent in favour of all agenda topics

- Future focus on development, acquisition and operation of small hydro run-of-river power plants in Europe

- Renowned experts with decades of experience in the renewable energy sector appointed to the Management Board

- Strong market growth expected in the small hydropower sector in Europe in the coming years on the way to climate neutrality

Hamburg, 15 July 2024 - CGift AG becomes DWK Deutsche Wasserkraft AG. The new name goes hand in hand with the strategic repositioning of the company as the first listed independent hydropower producer, IPP (Independent Power Producer), in Germany. DWK Deutsche Wasserkraft - led by experienced industry experts - aims to utilise the potential of the hydropower market and at the same time make a contribution towards climate neutrality in Europe. The company's shareholders passed the necessary resolutions at the Annual General Meeting and approved all items on the agenda with 100% of the share capital represented. In addition to the change of name and the new definition of the company's purpose, a cash capital increase with the exclusion of statutory subscription rights by issuing up to 300,000 new shares was also approved.

Hydropower: highest efficiency, lowest CO2 footprint, low costs

With hydropower, DWK is relying on an energy source that is characterised by a unique combination of high environmental sustainability and maximum efficiency as well as maximum energy yield over the entire life cycle. DWK's business activities are particularly focussed on small hydro (run-of-river) power plants. In addition to the ecological advantages, hydropower is also economically competitive with other energy sources. With an efficiency of up to 90 per cent, hydropower outperforms other sources of electricity generation. Renewable electricity sources such as wind and solar power have a technical efficiency of up to 50 per cent and 20 per cent respectively. Nuclear, gas and coal-fired power plants are only around 35 to 50 per cent.

According to calculations by the IEA and independent studies, hydropower also occupies the top position in terms of energy yield over the entire life cycle. In contrast to other renewable energy sources, hydropower plants are base-load capable without complex and costly intermediate storage facilities.

Due to their compact design, small hydro run-of-river power plants in particular have relatively little impact on nature and do not change the basic natural flow of water. This is also reflected in a comparison of the carbon footprint: Hydropower plants are around 20 kilograms per megawatt hour of electricity generated (kgCO2 / MWh). Energy generation from fossil fuels comes in at massively higher values (gas 600 kgCO2 / MWh and coal up to 1200 kgCO2 / MWh). Renewable energies from the sun and wind, which have a CO2 consumption of approx. 100 kgCO2 / MWh and 40 kgCO2 / MWh respectively, are also associated with higher CO2 emissions.

Combination of ecological and economic advantages drives the market

Generating a megawatt hour of electricity from hydropower is on average cheaper than other sources of electricity. Accordingly, hydropower plays an important role in the energy transition and climate neutrality initiatives. The necessity for electricity from hydropower significantly exceeds the current supply, meaning that stable growth rates are to be expected. In view of the ongoing energy transition and Europe's goal of CO2 neutrality by 2050, hydropower plants are the ideal complement to wind and solar power.

The Norwegian market in particular, on which DKW intends to focus, has potential. In Norway, there is already a liquid market for existing plants with around 2,000 existing hydropower plants with a total output of 140 terawatt hours. This market therefore continuously offers transaction opportunities for operating plants. On the other hand, there is significant potential for new construction projects, which the company can tap into due to the existing market access and expertise profile of the new management team.

Experienced management with German-Norwegian roots

An important factor in DWK's market success is the experienced team with German-Norwegian roots, which will lead the company in the future. With Jan Erik Schulien and Henning Rath, renowned industry experts have been appointed to the company's Management Board.

Schulien, a Norwegian national, has more than 25 years of experience in the renewable energy sector. He was previously Managing Partner and Board Member of various hydropower developers and operators and built up the hydropower asset class at the real asset specialist Aquila Capital, among others.

Rath, a German national, has more than 23 years of experience in financing, business development and investor relations, specialising in hydropower, solar and land development. He was also previously Managing Partner and Board Member of two Norwegian hydropower companies. His other professional experience includes Aquila Capital, Engel & Völkers Capital and Branicks.

The management team has experience from more than 40 transactions involving 140 hydropower plants with a total volume of around 2 billion euros. The Supervisory Board of DWK was also strengthened by the Annual General Meeting with experts from the renewable energy sector from Germany and Norway.

Henning Rath, CEO of DWK Deutsche Wasserkraft AG: "With DWK, we are creating the first listed pure hydropower IPP in Germany. As an independent power plant operator and developer, we are positioning ourselves in a growing market that has great potential due to the combination of ecological and economic advantages. I am convinced that with our experienced team and extensive network in the European hydropower sector, we will be successful for our shareholders in this market. Our company also combines sustainability and profitability in an ideal way."

The voting results of the Annual General Meeting are available at www.cgift.ag

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