• KTS Engineering, INNIO’s Authorized Channel Partner for Jenbacher
  Gas Engines, to Provide Four J420 Biogas Engines to I&U Group
• Jenbacher Gas Engines Will Help I&U Group, One of the Largest
  Agricultural Producers in the Ukraine, to Reduce 24,000 Tons of Carbon
  Dioxide Emissions Annually
• Biogas Project Helps Meet Ukraine’s Renewable Energy Action Plan
  Goals, Focusing on Diversifying the Energy Mix by 2020

JENBACH, Austria–(BUSINESS WIRE)–INNIO* announced today that through KTS Engineering, INNIO’s authorized
Channel Partner, it will supply a complex solution based on four
Jenbacher* biogas cogeneration units for a new zero-waste biogas plant
of the Ukrainian agroholding I&U Group. The project will result in a
total reduction of 24,000 tons of carbon dioxide emissions annually for
I&U Group, one of the largest agricultural producers in the Ukraine.

With the Ukraine’s National Renewable Energy Action Plan focusing on
diversifying the energy mix and strengthening production of renewables
by 2020 and through 2030¹, projects based on biogas will help
to achieve these goals. The project is being financed through a loan
from the European Bank for Reconstruction and Development and the Clean
Technology Fund. It is under a program founded to help the agricultural
industry of the Ukraine develop renewable energy production from
biowaste.

“Our major focus is high-end service and maintenance, enabling biogas
operators to increase the efficiency of our customers’ investments,”
said Pavel Savenko, shareholder, KTS Engineering. “We are proud to offer
reliable, economical and sustainable power generation solutions from
INNIO, near or at the point of use, to the Ukrainian agricultural
industry. Biogas is not only a great source of renewable energy, but it
also helps reduce greenhouse gas emissions and provides a solution to
address the disposal of waste from livestock farms^1..”

INNIO’s fuel-flexible Jenbacher J420 biogas engines—which will be
installed at the Novomirgorodsky Sugar facility owned by I&U Group in
the Kirovohrad region—will have a total capacity of 6 megawatts (MW),
and the project includes equipment installation, startup and further
maintenance for the new plant. The Jenbacher gas engines are able to
produce power and heat from biogas from beetroot pulp, corn silage,
chicken droppings and animal dung.

The new combined heat and power plant will be equipped with INNIO’s
myPlant^* Asset Performance Management solution, enabling
around-the-clock remote monitoring and diagnostics of equipment
operation that will allow I&U Group to reduce downtime and costs moving
from a reactive maintenance schedule to a condition-based maintenance
approach.

The Ukraine is the pilot country for INNIO’s biogas projects in
Russia/CIS, with the first power plant in the region based on a
Jenbacher J312 gas engine commissioned in 2009. That plant has a total
capacity of 625 kilowatts. It is also home to one of the world’s biggest
biogas plant designed and erected by Zorg Biogas AG, located in
Teofipol, Khmelnitsky Region, based on 18 of INNIO’s Jenbacher Type 4
units—15 J420s and three J416s, with a total electrical output of 26.1
MW. Eleven of the engines are commissioned, with seven units in
production for delivery in the 2^nd and 3^rd
quarters of 2019.

This pilot is the first biogas plant of Ukrainian agroholding I&U Group
powered by Jenbacher gas engines and is expected to be commissioned by
fourth quarter 2019. Upon commissioning, the new biogas plant will be
eligible for the “Green Tariff” — a Ukrainian government feed-in tariff
scheme for electricity generated from renewable energy sources.

“We help companies in a wide variety of industries—such as utilities,
oil and gas, food and beverage, commercial buildings, data centers and
agriculture—provide reliable, economical and sustainable power to their
customers,” said Carlos Lange, President and CEO at INNIO. “With the
support of KTS Engineering, INNIO has succeeded in meeting customer
needs in the Ukraine by supplying 40 biogas and landfill gas
containerized Jenbacher gas engines in the last three years alone.”

In a move to increase renewable energy sources, the Ukraine has taken
steps to accelerate the deployment of renewables. With the national
power company, Ukrenergo, forecasting renewable energy to double from
1.5 gigawatts (GW) in 2018 to 3 GW by the end of this year, it is a goal
that by 2025, full integration with the European Network of Transmission
System Operators for Electricity will be achieved. As renewable energy
sources are growing their share in the Ukrainian power system, peaking
power plants with fuel flexible solutions like gas engines can help to
complement a volatile energy source. INNIO serves as a key enabler in
helping customers transition to renewable energy, providing tailor-made
solutions that operate as an integral part in the energy transition.

* INNIO, Jenbacher and myPlant are trademarks.

About KTS Engineering

KTS Engineering is an authorized Channel Partner for INNIO’s Jenbacher
gas engines in the Ukraine, operating since 2003 in the power and oil
and gas markets of the country.

About INNIO

INNIO is a leading solutions provider of gas engines, power equipment, a
digital platform and related services for power generation and gas
compression at or near the point of use. With our Jenbacher and Waukesha
product brands, INNIO pushes beyond the possible and looks boldly toward
tomorrow. Our diverse portfolio of reliable, economical and sustainable
industrial gas engines generates 200 kW to 10 MW of power for numerous
industries globally. We can provide life cycle support to the more than
48,000 delivered gas engines worldwide. And, backed by our service
network in more than 100 countries, INNIO connects with you locally for
rapid response to your service needs.

Headquartered in Jenbach, Austria, the business also has primary
operations in Welland, Ontario, Canada, and Waukesha, Wisconsin, US. For
more information, visit the company’s website at www.innio.com.
Follow INNIO on Twitter and
LinkedIn.

¹ https://shandaconsult.com/biogas-market-ukraine/

Contacts

Susanne Reichelt
INNIO
+43 664 80833 2382
[email protected]

Shaun Wiggins
Soteryx
+1 (518) 795-8096
[email protected]