Provision of balancing energy: Alzchem Group AG supports grid stability through flexible load control

Trostberg, October 24, 2024 – Alzchem Group AG, a globally active specialty chemicals company, makes a significant contribution to the stability of the power grid with its two carbide furnaces at the Hart site. The electrical output of both furnaces is marketed as part of the new market-based instrument “system service product in real time from switchable loads” (“Systemdienstleistungsprodukt im Echtzeitbereich aus abschaltbaren Lasten” – SEAL). This marketing of flexibility also enables Alzchem to further optimize the costs of its energy-intensive production.

SEAL includes services designed to ensure the stability and reliability of the power grid. Industrial electricity consumers (“loads”), such as Alzchem’s carbide furnaces, can be switched off within fractions of a second if necessary. SEAL has been active since May 22, 2024, replacing the former “Regulation on Interruptible Loads” (“Verordnung zu abschaltbaren Lasten” – AbLaV), which was used until June 2022 to activate industrial flexibilities for grid stabilization, particularly in southern and western Germany. However, only a few companies meet the strict shutdown criteria of SEAL, leaving a large part of the industrial flexibility potential untapped. According to current estimates, the available flexibility potential is only around 400 MW. Alzchem’s two carbide furnaces, with their high total output, meet the high demands for the provision and delivery of shutdown services, making them an important tool for stabilizing the power grid.

Klaus Englmaier, COO of Alzchem Group AG: “Being the first company to participate in the balancing energy product SEAL is a great success for us – especially in view of the strict shutdown criteria and the demanding prequalification. We are pleased that we can not only contribute to grid stability in this way, but also optimize our operating costs at the same time. This makes this milestone extremely valuable both ecologically and economically.”

About Alzchem

Alzchem is a globally active specialty chemicals company that is one of the market leaders in most of its fields of activity. Alzchem offers answers to various global developments such as climate change, population growth and increasing life expectancy. We deliver solutions through brands and products of the highest quality and through a sustainable vision to help shape global developments.

The company sees interesting growth prospects for itself in the areas of human and animal nutrition and agriculture in particular. As a result of population growth, it is necessary to achieve efficient food production. Pharmaceutical raw materials and creatine products can contribute to a healthy old age as life expectancy increases. Alzchem is facing up to the goal of sustainability arising from climate change in the field of renewable energies and across the entire company. The fields of fine chemicals and metallurgy offer just as great a perspective.

Alzchem Group AG’s broad product range includes dietary supplements, precursors for PCR tests and pharmaceutical raw materials. These offerings are the company’s response to global trends and developments. Alzchem is ideally positioned in this respect and considers itself well prepared for an environmental future and global developments.

The company employs around 1,690 people at four production sites in Germany and a plant in Sweden, as well as three sales companies in the USA, China and England. Alzchem generated Group sales of EUR 540.6 million and EBITDA of EUR 81.4 million in 2023.