March 19, 2025 – A.H.T. Syngas Technology N.V. (ISIN: NL0010872388, WKN: A12AGY) continues to strengthen its role as a comprehensive energy supplier while also advancing its core technology portfolio. In this current interview with GBC AG Analyst Cosmin Filker; our CEO, Mr. Gero Ferges offers insights into the latest business developments, the handling of project delays, and the company’s plans to grow beyond the traditional plant manufacturing business. Below is the full interview text:
“We are evolving from a plant manufacturer into an energy supplier”
GBC AG: In the first half of 2024, AHT recorded a sharp increase in revenue (+40%) and earnings (+20%). At the end of the year, you withdrew your positive forecasts for the 2024 fiscal year after project schedules for a major Japanese contract were postponed. Can you outline the background to this?
Gero Ferges: The reason for the delays in executing the framework contract is that the first project in the pipeline encountered unforeseen difficulties on the customer side in locally procuring and integrating the plant. Components such as those needed for biomass drying and transport, heat distribution, and the adjustment of our technology to Japanese conditions are all affected by this delay. The responsibility for procurement lies with our customer. Nonetheless, the first of four lines for the first power plant was put into operation at the end of last year.
GBC AG: Which measures have you taken to address this issue, and do you expect the upcoming projects within this framework agreement to be commissioned as scheduled?
Gero Ferges: Since we are still in negotiations with the customer, I cannot provide more detailed information. I can only say that we are in ongoing communication with them and have submitted extensive proposals—for example, for additional support services.
GBC AG: The framework agreement includes the completion of 20 biomass power plants and can be considered a strong proof of concept for AHT’s technology. What significance does this framework agreement have for future business development?
Gero Ferges: For the framework agreement, establishing series production at AHT was always the main priority. Already with the third project, we were able to achieve cost and time reductions of 20%. This directly impacts project margin quality and validates our strategic approach. This benefit is not limited to Japanese projects alone but also strengthens us in other markets.
GBC AG: In the 2024 half-year report, you mentioned an increase in project inquiries from Europe. Will Europe therefore gain importance for AHT’s business development?
Gero Ferges: Business in Europe has developed well. At our flagship project for a CO2-neutral natural gas replacement in industrial heat, we are currently in the commissioning phase. Local waste materials will be used to generate about 1.2 MW of high-temperature heat. Each year, the plant will save about 700 tons of CO2 and make our customer less dependent on natural gas.
This plant represents a blueprint for secure, CO2-neutral high-temperature heat in industry. Demand for such systems is extremely high. We expect an approximately 200% increase in revenue in the high-temperature segment. We anticipate receiving another contract soon for a plant that substitutes natural gas using sewage sludge. In the high-temperature sector, we expect incoming orders of more than EUR 3 million in the first half of the year. Replacing natural gas is also an important topic in other European countries. Moreover, decentralized energy supply is becoming ever more important. Many European countries are supporting these technologies through investment subsidies. Secure energy supply is a key success factor for both our customers and ourselves in these times.
GBC AG: In addition to the already fully developed technology for producing synthesis gas, you plan to add hydrogen production to AHT’s product range soon. Are projects in this area proceeding on schedule?
Gero Ferges: Since 2021, AHT has been pursuing several projects in hydrogen. First, we are looking at separating hydrogen from gas mixtures. We recently achieved a breakthrough here: using the FHT process, we have succeeded in continuously separating hydrogen from a mixed gas stream. This process is now being scaled up significantly and will also be used in a publicly funded project. Delivery of this module will take place in March.
Furthermore, in October 2024, we received approval for a project combining an electrolyzer with a synthesis gas plant. Combining both technologies offers major synergies that significantly increase hydrogen yield.
The third area involves hydrogen production on a larger scale. In this case, the synthesis gas process is operated so that hydrogen production is the main focus. Since 2023, we have been in concrete planning for a site in northern Germany. Ultimately, about 1,600 tons per year of CO2-neutral hydrogen will be produced from about 1.6 tons of biomass per hour.
GBC AG: Hydrogen production is very expensive. Aren’t these projects too big for AHT?
Gero Ferges: Yes and no. Our organization is indeed reaching its limits here at the moment. Therefore, we are bringing in external partners to support us both operationally and financially. We are collaborating with one of the world’s leading consulting firms in energy transition strategies to bring our hydrogen projects to market in a targeted manner. This partnership lays the foundation for sustainable scaling and market penetration.
GBC AG: That sounds like a new corporate strategy, doesn’t it?
Gero Ferges: Indeed, yes. In the future, AHT will not just be a plant manufacturer. We are evolving from a plant manufacturer into an energy supplier. We are offering this comprehensive concept in several projects. Customers receive a predictable, secure, cost-effective, climate-friendly energy supply. We will build up a portfolio of plants that will also make AHT attractive to infrastructure investors. From our experience in Japan, we have learned that a plant can yield significantly higher recurring revenues as opposed to a one-time sale.
GBC AG: The legal form “N.V.” (public limited liability company under Dutch law)—which affects both accounting and the annual shareholders’ meeting—has been an issue among AHT’s investors. Are there plans to change the legal form?
Gero Ferges: Converting to an AG (German stock corporation) is still AHT’s intention. We have worked out and finalized plans for the conversion with our advisors. Our current focus is on operations. Still, we will go ahead with the conversion in the foreseeable future.
GBC AG: Where do you see AHT in the next three to five years in terms of target markets or sales territories, revenue levels, and your technology portfolio?
Gero Ferges: AHT will develop into an energy supplier. The plant business in various markets will continue to be the foundation of this growth. However, more and more of our own projects will come into play, providing us—and therefore also our investors—with recurring revenues. The growth in the plant business will still largely take place in international markets, while the operation of the plants will initially be expanded in the DACH region.
GBC AG: Mr. Ferges, thank you for the interview.
Following this insightful interview, we at A.H.T. Syngas Technology N.V. remain confident that our evolution from a plant manufacturer to a comprehensive energy supplier will drive robust, long-term growth. By strengthening our technological capabilities, entering new markets, and focusing on recurring revenue through contracting models, we plan to deliver climate-friendly energy solutions that benefit our customers and investors alike. We appreciate the continued interest in our developments and look forward to sharing more updates soon.
For the full original document, please see the attached file below. (German)
GBC AHT Interview 19_03_2025 IR
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Disclaimer
This interview has been translated from German into English for convenience. While we strive to ensure an accurate rendering, in the event of discrepancies or uncertainties, the original German version shall prevail. Neither A.H.T. Syngas Technology N.V. nor any other party assumes any liability for errors, omissions, or inaccuracies in this English translation.