Hello everyone, once again, this is Julien Moulin, I'm the Chairman of FDE. I'm here with my colleague Aurélie Tan, CFO of the group, Salma Ibrahim, who's part of the finance team, and our new Head of IR , Ronald Vasilek. Today, Aurélie and I will be taking the lead in presenting those annual results. I'm very, very pleased to present those annual results for 2025. FDE's purpose has always been quite clear, it is to produce local low-carbon energy with positive impact for the local consumers. Over the past year we've just continued to strengthen our position as a leading European platform for clean energy, mainly across five complementary energies: electricity, heat, gas, hydrogen, and biogenic CO2.
The year 2025 marks an important step for us in our transformation from a very niche energy producer to a diversified and innovative European group, even more resilient than before, to reach our goals that we will highlight again during this presentation. If we go to slide two. Salma, if you can go to the next slide, please. Now if you can go to slide two. Slide two, thank you. Going back to this slide, what are we building with FDE? Our vision has been to provide integrated solutions that support consumers in their transition to low carbon. We use and we produce low-carbon energy from biogas, abandoned mine methane to hydrogen. We complement all those energies with Cryo Pur technologies for upgrading and carbon capture of the gas, but also of the different types of gases, being CO2, being hydrogen, being biogas.
This combination allows FDE to cover the entire low-carbon value chain from production all the way to utilization and in the future storage, creating quite a lot of synergies across those activities. We feel that in a context of growing demand for secure, local, sustainable energy, our platform is ideally positioned for this long-term growth. If we go to the next slide. Today, our presence and operations is spread around five countries: France, Belgium, Luxembourg, Bosnia, and increasingly Norway. We'll go back to that later on the project. This has been a strong focus of the past year and a half. In France and Belgium we operate a strong and profitable base of cogeneration and photovoltaic assets, producing around 220 GW hours of energy per year.
This foundation provides stable recurring revenues while we continue to expand into natural gas, biogas, hydrogen, and CO2 projects that will basically drive our next phase of growth and allow us to reach our goals of 2030 and beyond. In Norway, we are developing a significant new platform around biogas and hydrogen. We've discussed that in length in the past, but this is really a key focus for us over the next couple of years. In Bosnia, our solar farm continues to deliver power locally. It's still a bit of an isolated asset for now, but the next 12 months will allow us to strengthen our positioning there or sell this asset to focus on our key developments. This geographic and technological diversification makes us one of the most resilient energy transition players in Europe. Our numbers are showing that if we go to the next slide, slide four.
Key takeaways of 2025: I think despite continued market volatility and some gas injection constraints on our assets in northern France, FDE delivered a solid set of results for 2025. We achieved revenues of EUR 30.4 million, an EBITDA of EUR 17.2 million, and that demonstrates once again the robustness of our business model. Our balance sheet remains strong with a cash position of EUR 62.6 million at year end and EUR 22 million in new corporate loans secured to support our development pipeline. Over the past 12 months, we have basically tripled our investment efforts with about EUR 24 million of CapEx in 2025 versus EUR 9 million last year. That illustrates our commitment to achieving our 2030 ambitions. We entered, as you saw, a strategic partnership with Cemex to develop a CO2 capture pilot which could be, if successful, rolled out across Cemex plants in Europe. That's seven plants minimum in Europe.
That's a promise. That's a very interesting new growth avenue for FDE that is absolutely not captured in our 2030 growth plan. This year, the key thing is a strategic step up in Norway with the acquisition of Alltec that basically enhances significantly our engineering, technical, and construction capabilities and will allow us to accelerate the build up and the construction of our low-carbon projects. It's been a very, very busy year. Let me detail a bit more the acquisition of Alltec on slide five. Alltec is an EPC company we worked with in 2022 when we built for a third party the first liquefied biogas and biogenic CO2 plant in Western Norway that we commissioned in May 2022 and we integrated with the Prime Minister of Norway.
We worked with this team and we thought it was an excellent idea to team up with them to accelerate our development in Norway. Alltec employs about 50 engineers and technicians, mainly technicians, highly skilled technicians, generating just under EUR 10 million of revenues. Very importantly and completely underrated. Go on Sustainable Energy House is one of the largest test centers for green fuel and green energy technologies in Europe. This move basically brings us, I would say, five major advantages: strong technical and operational know-how in Scandinavia, in Norway, lower development cost, shorter on time to market for our projects. Of course, it will bring additional revenue opportunities and it also brings again a secure pipeline of about EUR 100 million of identified projects. This will definitely bring and contribute to our 2030 targets.
Alltec expertise is mainly in biogas, hydrogen, ammonia, CO2 storage and therefore all those systems perfectly complement our portfolio of solutions or portfolio of assets, creating very, very strong synergies across our European portfolio and across our European operations, not just on Norwegian operations. With this acquisition we feel that we now have a fully integrated local value chain in Norway and we feel that's going to help us to position ourselves as a major low-carbon energy player in that part of the world. Now I will leave the floor to Aurélie who's going to highlight the key results financial numbers for 2025. Aurélie, all yours.
Okay, thanks Julien. Good morning everyone. Very happy today to present your annual results for the fiscal year 2025. As mentioned by Julien, it has been a year of consolidation. Obviously integrating Greenstat that we bought last year and Alltec earlier this year. You will see as well in the next few slides the performance we made and also preparing the next step for the growth of FDE going back to 2025 on a solid revenue performance. We've discussed, we've disclosed that back in July we had quite stable revenues, EUR 30.4 million for the year end 2025. We mentioned there's been normalization of the energy price market. We saw a 35% decrease in average selling price even though most of our portfolio is still benefiting from the feed-in tariff. We had also during this year some impact on the availability of the injection point.
We had some interruption for over three months. It has been back on stream. You will see as well on our Q1 numbers we published last night a full gas production for this quarter. For those who have followers, you know we are in discussion at the minute with NaTran making sure that those uneven doesn't repeat on the long run and also seeking for financial compensation on the lost revenue we had over the last few years. Consolidation of all new Norwegian entities. Full year for Greenstat for EUR 3.1 million and for five months for EUR 5.7 million. Julien mentioned this is bringing additional resources to be able to speed up some of the deployment we have in Norway at the lowest cost possible, bearing in mind that Alltec will carry on with their EPC activities. As of June 2025, EUR 5.7 million on the five months.
You would expect to have ongoing and increasing also EPC revenues from Alltec going forward. Overall 30% annual growth since the IPO. As we mentioned, we'll continue the investment this year and we'll see some significant growth in revenues from the year 2027 if we go on the next slide on the key metrics, a solid margin EBITDA EUR 17.3 million. That's a 57% EBITDA margin. If you retrieve some of the IFRS retreatment, which are non-cash related, we add 60%. In any case exceeding the target we set ourselves for 2030. For those who have followed us for some time, we have continued our rigorous cost management. Actually our administrative costs have decreased. If you look at the existing parameters, obviously adding our new Norwegian entities and bringing up close to 60 new employees, that adds up in total for this exercise close to EUR 3 million.
Bearing in mind that we are integrating the team, we are integrating the cost structure. We are still streamlining those costs and we would expect that from this exercise, by 2026 we will see some rationalization around those costs. Drin Energija, which is basically a subsidiary we have in Bosnia for a photovoltaic plant, contributes EUR 2.8 million for this exercise as a working interest of 49.5%, leading to an operating income of EUR 12.2 million, being 40% of our revenues. Net income group share is EUR 3.7 million. That represents 12% of our revenues. We have had increased financial cost for this exercise, EUR 5.7 million. That was on the back of new debt that has been raised over this exercise. For the first time we did raise some financing at the FDE level.
At the group level, without security, benefiting from quite some interesting rates ranging from south of 3% to a bit over 4%. That allows us obviously to support the development of the group. It had some impact as well on the net income on our financial structure, sound financial structure. We have strengthened our balance sheet close to EUR 260 million. That's EUR 60 million of additional balance sheet size, mainly on investment. In addition to Alltec acquisition we continue to invest on our main activities, so EUR 24 million over the year, pretty much equally spread between CHP and biogas for EUR 7 million- EUR 8 million. We also started to spend on our Agder project in Norway that will be commissioned at the end of next year. Cash position, we mentioned EUR 63 million on the back of strong operating cash flow. Cash flow from operations were around EUR 16 million this year.
We have raised also additional debt. Our net debt as of June 2025 is at EUR 55 million. That's excluding the IFRS retreatment around the leases. Looking at our equity book of EUR 100 million, that gives us still some adequate leverage and gearing ratio with a net debt to equity of 64% and a net debt to EBITDA of 3x with a cost of capital which remains quite good given where the interest rates are at around 5%. If we go to the next slide on this new exercise. We published last night our Q1 revenues very much in line with the previous exercise in terms of normalization of the energy price. As I mentioned earlier, we are fully producing at our gas facilities with EUR 1.8 million of revenues, also benefiting from Alltec contribution on its EPC business for EUR 2 million.
EUR 6.6 million of revenues for Q1 represents a growth of 32% compared to the same quarter last year. Overall, as a summary of both the results and this Q1, we have a solid business model on our abandoned mine methane. Wherever energy prices are, we're still benefiting from the feed-in tariff for 10 years, which remains a floor for the abandoned mine methane business. For the four new CHP [double B] producing this year and contributing for the revenues, we have definite tariffs, which means that overall, 55%-60% of our French CHP portfolio will be at a definite tariff. We are carrying on with this investment over this exercise, benefiting obviously from our strong cash position of EUR 63 million.
We also had some headroom under the EUR 85 million green bond we have with [Rothschild] and we are continuing some dialogue with banks to project finance at quite a low cost of capital. All of the projects we are pursuing, especially on the abandoned mine methane and the biogas. I am going to hand over to Julien to go through what we are focusing on especially over the next 18 months and also the roadmap to 2030. Thank you.
Thank you, Aurélie. Indeed, as we look beyond those solid results that Aurélie just described to you, I'd like to focus more on our key project pipeline and the progress we've made. We are making over the next, I would say, 18 months. Despite a more complex permitting environment across Europe, it's not been just France. We talk a lot about the permitting in France, but it's been complex in many places. Pretty much all of our major developments have been confirmed and are moving forward. As you know, a few of those projects have experienced those delays. The CHPs in France are the focus point on that, and we are getting to the end of this process. In Norway, it's been mainly related to the final connection or the zoning approval, but none have impacted our medium-term or 2030 objective.
The fundamentals remain very strong, and our assets are now pretty much permitted, financed, and supported by clear offtake opportunities that I will detail. Let's get on to the next slide. I'm going to detail the plan in France, the short-term growth plan in France, and we'll go to Norway afterwards. When we go to France, you know, we continue to build on our strong operational base. Nothing new there for the new cogeneration units, which are scheduled to start as soon as possible. It's a matter of weeks rather than months, as we've said before. I hope we'll be able to make an announcement anytime over the next few weeks on the final approval to press the button and start generating power from our existing four new CHPs in northern France.
This approval will give us not just the opportunity to develop those four CHPs, but will likely give us over 15, potentially 18, new sites. It's a meaningful milestone for longer-term deployment of CHPs on abandoned mine methane in northern France. CapEx has already been spent, as already explained, and we expect about EUR 4 million of annual revenues from those units. That will help move forward towards our 2030 objective. Of course, we will update the market once those new sites are ready to go. I expect calendar year 2026 and calendar year 2027 to be quite busy on new CHPs. In Lorraine, you might have seen the news, we are resuming our low-carbon methane development activities this October with two wells to be drilled and first production expected by early 2027 at the latest. The objective remains the same.
It's to produce this gas that is trapped into the deep coal and use this gas to replace imported gas with locally sourced gas with a much lower carbon footprint. We've been using the same team that we used for our 2015 campaign in [Lorraine], and we added up quite a few talents dedicated to directional drilling and other things that are required to put the maximum chances of success for this drilling campaign. At the same time, we are also preparing the first natural hydrogen drilling campaign which will start end of 2025, early 2026.
We are also making good progress with our partners Saint- Gobain, [Sal Expert], CNRS, University of Lorraine on detailing the parameters for the membrane and the equipment that we will use to measure the hydrogen concentration at the bottom of the well, but also the tools that will be used to do the test production of hydrogen and will be able hopefully to provide some initial result by summer 2026. These two programs represent about EUR 18 million in investments and are expected to generate first an initial EUR 4 million of annual revenues by 2027. Overall, I would say our French project illustrates our commitment to active development with now permitting catching up and all the resources available and ready to deliver on the growth plan that we have. If we go to the next slide. Turning to Norway, which has become really a cornerstone of FDE's international expansion.
In Norway we are advancing on one side the portfolio of renewable natural gas and biogenic CO2. We call it renewable natural gas, but it could also be called liquefied biomethane. Those projects are progressively ready to under construction and the objective is to enter production during the financial year 2027 and onwards. The first two are in Agder where construction has begun. We've secured the land, we've secured over 50% of the feedstock. The site is fully permitted and we have already ordered the long lead items. This project we've secured about 17% of the CapEx via subsidies and we've already secured 30% of the offtake through our local partner. The remainder is on the final negotiation with the local distributor in Stavanger, which we expected Stavanger to be our first new project in renewable natural gas in Norway. Permitting has been slower than in Agder.
We've secured the land and we've secured a larger amount of feedstock. I think we reached about 85% of the feedstock. We will continue to grow with the objectives to secure between 110% and 120% of the necessary feedstock. Local authorities are slow, but they are positive about the final zoning amendments, and we expect validation of these zoning amendments that will allow us to press ahead with our second stage of construction anytime soon. Subsidies for this project are about 10% of the CapEx. So far, discussions are progressing well. To give you a bit more flavor on the offtake for Stavanger, we had about 11 LOIs from different parties: Norwegian offtakers, distribution in the distribution sector, in the transportation sector, German offtakers, transportation and traders, and also other Scandinavian offtakers.
We have selected three parties for final negotiations, and we expect to sign the contract by the end of this calendar year 2025. Each of those projects represents about EUR 40 million of investment. We are really stepping up the size of our activity, we are stepping up our game, and we should deliver. Each of those projects should deliver about EUR 15 million of annual revenues. This project will be a significant portion of the 2030 targets that we put forward. Now, if we move south to the hydrogen side, the Agder project that you've heard a lot about is advancing rapidly. It's at the southern tip of Norway on the Port of Kristiansand. Construction started in August 2024. There was quite a lot of work to do to make the site ready for hosting the equipment. We've ordered the key equipment.
We signed a contract with ITM Power, the English listed company, for the electrolyzer and with a Swiss company called [Hoerbiger] for the compressors. That was a key contractual negotiation, and we were very happy with the outcome. Phase one of this project benefits from about 40% of soft funding of subsidies from Enova. Enova is the environmental agency in Norway. It's a good, strong validation of the project quality and the importance of this project for the region, but also for the country, because I think we will be the first significant green hydrogen project in production in Norway. For this project, CapEx stands at about EUR 37 million, and the objective is to reach EUR 20 million of annual revenues by 2027. These Norwegian developments also confirm that we're quite ambitious in Norway.
We are quite ambitious in building an integrated low-carbon energy hub in that part of the world, combining bio, renewable, natural gas, hydrogen, CO2 recovery, potentially other types of new fuels, but all secured with public funding and with local partners that will help our team at Alltec to speed up the development of this project and be successfully running those operations. If we go to the next slide on the project pipeline and 2030 targets, we wanted to show you this slide to show you the scale of what FDE is building because it's quite an ambitious plan and we wanted to show you that it's becoming clearer by the day as we progress our project. From today's base of about 20 MW - 22.5 MW of cogeneration and about 65 MW of solar, our installed capacity will increase more than fivefold by 2030.
We are on track to deliver over 300 MW of low-carbon generation, a mix of cogeneration, solar, biogas, and hydrogen. Any number of energy output, that's more for the analyst, our production should rise from about 220 GW hours today to just under 1,000 GW hours by 2030, so about just over a fourfold increase. This growth will not be just driven by new assets coming online in France and Norway, but also by our continuous ramp up in renewable natural gas and natural hydrogen in Lorraine. More importantly, I feel for the visibility, the development sequence is now fully laid out. Projects through 2026 and 2027 are under construction. Final permitting, offtaking agreements, the final negotiation are signed for some, and with later stage projects to 2040 already defined and progressing through the pipeline.
While we face some serious permitting delays in France with the CHPs and some minor delays in Norway, the overall schedule remained fully consistent with our 2030 growth plan. If we go to the next slide, this leads us through our long-term outlook. The objective by 2030 is that FDE achieves annual revenues of over EUR 175 million and EBITDA exceeding EUR 85 million. A key other commitment is to reach CO2-equivalent emission reduction of over 20 million tons per annum. Those are ambitious goals. Of course that's who we are at FDE, but they are underpinned by visible project secure financing as already mentioned, and growing industrial demand. For local low-carbon solution, I think the overall background of the geopolitical dynamic strengthened our case for local low-carbon solutions in Europe. I think we are extremely, extremely well positioned. Our portfolio is resilient, it's diversified, and overall technically mature.
The combination of high-margin recurring assets and new scalable projects gives us strong visibility on both our cash generation and our growth. We remain fully confident in achieving our 2030 targets with all the key levers now firmly in place. Maybe a closing remark before we go into Q& A, I feel it's important to understand this transition that has been within FDE over the past two years. I think we embarked with the acquisition of Cryo Pur into this journey of moving away from a Franco-French asset into a European low-carbon energy platform with strong pipeline and clear trajectory. Growth company moved from being 15 people to over 100 people now, over 100 talented team members now. It's a big change over a relatively short period of time and our projects are progressing very well.
The fundamentals are very, very solid and we continue to deliver step by step on our strategy to provide this local energy with positive impact. Very proud of the achievement of the team and I would like to thank you all for your continuing interest and continued support of the company. Thank you very much. We'll go into Q & A. Salma put it in the chat. The way it works, it's important to put either your question in the chat or raise your hand and we'll enable the mic so that everybody can hear your question. Thank you so much and I'll leave it to Salma to organize the Q & A. Thank you.
[Foreign language]
Okay, so thanks for your questions. It was a couple of questions around [indebtedness]. One of the questions was about the level of debt we had in our accounts and that's why you see in the presentation. Just to clarify, our debt as per the balance sheet is EUR 125 million. If you deduct the cash of EUR 62 million, that gives you basically a net debt of EUR 62 million. The reason why that includes some IFRS treatment around long lease items. That's why in the presentation we showed you the sort of indebtedness retreated of that which gives you a net debt of EUR 55 million. You're right, the debt has increased. We are accounting roughly around EUR 5 million of interest based on the average interest rate we do have.
As I mentioned, we have increased this level of debt on this exercise linked to your question around the development subsidies, which will contribute indeed for a portion of the CapEx, but we will use either the cash available, cash flow generation, also a drawn facility to finance that. In parallel, we are in discussion to raise project finance. Project finance will be dedicated to certain projects both on the abandoned mine methane and on the biogas. We are talking now about a lower interest rate because you are refinanced to the project and the idea is to use the funds we have from the green bond to finance first and then we refinance that with our project finance.
You write in your analysis that given the development we will have over this exercise and going forward to take, as we say, the FDE to the next level and to get to the revenue target we set ourselves, it means that yes, you're right, the level of indebtedness will increase, especially during 2026, while the recognition into revenues will be more in 2027. Yes, 2026, you will see some level of indebtedness that will raise and that will normalize. If you take it back to, for example, your EBITDA level in 2027, when those projects will come on stream. We discussed that during the presentation. Compared to the CHP, our new projects are more capitalistic, even though they benefit from subsidies. One project, for example, of biogas or hydrogen brings between EUR 15 million and EUR 20 million of revenues.
You will see that from 2027, this cash flow generation and revenues will start normalizing back those levels on the indebtedness to a more level that we used to have.
To complement what already mentioned is 2026, 2027 is a peak, that is a peak for us of our indebtedness. Cash flow generation of our project will start kicking in. New project will start kicking in significantly during those. The bucket, the 2027. We should see reduction of that. That's also one thing that we did is we didn't want to be in the position where we were short of cash for developing our project. We actually called the cash a bit earlier to make sure that we had enough room for maneuver on each of our project and also to put maximum pressure to our contractual partners. When you have cash in the pocket, it's so much easier to make those negotiations with key partners, including some of the names that we discuss in the presentation. The last thing that two things maybe to add on to that is.
Julien, we can't hear you anymore.
It's valid for some subsidies, some subsidies that should come in. It's valid for Norway, but it's also valid for Lorraine. I think one of you mentioned a question on Lorraine. Part of the hydrogen program will be subsidized and that's also not really fully taken into account. I think we need to do more on those aspects. Given the positioning of our production assets and the evolution of the overall European environment on energy, I think there is no reason why we won't get much more support from both the French, Belgian, Norwegian, and European institution overall. The last thing that is also important to keep in mind is that will potentially have an impact on our indebtedness. Overall indebtedness is that we own 100% of our key assets.
We pushed, we decided that was an initial strategy of the group to push our advantage and to create as much value as we could on our own. There might be discussion, as we had in the past, with several key large industrial partners, to bring them in on some of the assets. That's something also to keep in mind, that we have the full flexibility on how we deal with those assets. Keeping in mind that so far for green energy or new energy group, or low-carbon energy group, we've always stayed on the very conservative side of the leverage. We didn't want to be seen as some of our competitors were three times, four times, five times more leveraged than we were. That's something that has always been the policy internally. That's why we brought the cash in earlier on.
We will continue to be very strict on the financial side because that's something that is of the utmost importance for our ability to maneuver our projects going forward. We take your point on the guidance on EBITDA versus the debt level. That's something that we will consider and discuss internally to assess whether or not it makes sense to guide you more precisely on that front.
Thank you.
Okay, thank you. We have a question from Mr. Piveteau.
Yeah, yeah. Thank you, Julien and Madame Tan, for your respective presentation. Extremely convincing, very clear and full of potentialities on the near future. Appreciate a quick question. It's hardly mentioned the competition for the precise activity, which is one of the. Would you mind to be a bit more specific regarding what are any competitors exactly on the same line of activity of business and which one? Both in France and other European countries, including Norway. Merci.
Bonjour, Michel. [Foreign language] . I'll switch to English. The question was about competition on the various activities. Let's kickstart with CHP units or abandoned mine methane, which is one of our key activities in northern France and in Belgium. In France we've got a near monopoly situation because we've got long-term concessions that will expire in 2042 and will be renewed for another 25 years and potentially 2x 25 years. Competition in France for abandoned mine methane is, I will not say completely nonexistent, but we haven't seen it so far. In Belgium we applied for new concessions and when we applied, there was no bidder against us either. The two key competitors in abandoned mine methane are one in Germany, a company that used to be called Steag and has been bought by a private equity called Asterion Capital.
I think they are fixing their operational issues. It's part of a larger group and they are fixing their operational issue and growth has not been a very strong focus there. We tried to buy those assets. It didn't work and we will continue to monitor the situation. I see it as a growth opportunity for us, not as a threat for competing with us in some of the jurisdictions where we operate. In the U.K., we've got a large group called Infinis that is also owned by a private equity group called 3i. Infinis is much larger than FDE. They've got over 100 sites in production and they do landfill gas and abandoned mine methane. Those guys are focused on consolidating the U.K. We also had a lot of discussion with them.
We know them extremely well, but they were not keen to enter Europe when we last talked to them. We have monthly or quarterly discussions with them. We keep track of what we are, what they are doing. It's a very cash flow generative business for the 3i fund and they don't want to sell for now. We don't see them as real competitors. If we go further east in Poland, in Slovakia, Czech Republic, you have smaller groups that also could potentially grow in that space. So far we only see coal mining companies trying to learn the business and try to use the fact that they have the concessions for coal mining and therefore want to potential gas. We see that as a very low, low risk of success.
We've seen that in France, we've seen that in Germany, we've seen that in the U.K., we've seen that in the U.S. The coal miners, they don't know how to deal with gas. That's as simple as that. It's a completely different business, and they really struggle to shift from gas is the enemy to gas is the opportunity completely. You need to move from geologist to reservoir engineers. You need to have subsurface and surface knowledge, and they struggle with that. We see limited competition in abandoned mine methane. Now, if we go to solar, solar, zillions of competitors. It's what I call low margin, low barrier to entry business. We only develop it opportunistically when we see, when we have land for free, when we have in the areas where we already operate. Otherwise, we are not promoting this activity actively.
When we go to renewable natural gas, that's where I would think the competition is the toughest in a sense that you need to secure a large amount of feedstock to be able to develop your activity. In certain parts of Europe, it's really, really cutthroat competition for that. We feel Norway has not dealt much with this waste for many, many decades, and therefore the volumes of feedstock available is much more significant than it is. I mean available, not contracted. It's much more significant than in other parts of Europe. There are more players, more players because it's a very attractive market. Margins are good. The regulators, the politicians are supporting this activity. This is an area where we see significant competition. Everything is mature as well. There is no technology or risk. Different pieces of the puzzle to get into.
Productions are very, very clear, well defined, and very mature. Competition is relatively high, but margin stays for now, very good. That's why we want to contract offtake and feedstock supply for very long term to those margins. If we go to hydrogen, on the green hydrogen side, or hydrogen produced from electricity with electrolysis process, many PowerPoint companies, i.e., many companies who have pre-project or project on paper, but very, very few companies are executing those projects for a couple of reasons. One is the market has been maturing much, much more slowly than expected. A lot of buyers have used the same strategy, saying, oh, we are interested in hydrogen, but they haven't committed or they haven't bought the infrastructure necessary to offload or offtake those volumes of hydrogen. That's the first thing. The second thing is the technology is not as mature.
It's more complex than what you see in other parts of our portfolio. If it's more complex for us, with a very strong process engineering team and experience in dealing with different types of energies, it's very difficult for newbies to come to that space. It's been tough. Third, because there are very few tangible production sites in Europe, financial partners, being on the equity side or on the banking side, are relatively prudent with this activity. If you are a dedicated green hydrogen developer, it's very, very complex for you to finance that. The chance that we have is because we have a base of recurring portfolio, we are able to use the mass of our activity to first show that we are a competent energy producer, energy operator, and two, have the credibility with our financial partners to be able to raise capital associated to those projects.
Three, we are credible with the offtakers, because the offtakers cannot commit to those PowerPoint companies. If you talk to all the big traders who are interested in hydrogen or even the biggest buyers of hydrogen in Western Europe, we went to visit [Saarstahl] as an example, a steel manufacturer that just got EUR 3 billion of subsidies from the German government to move to hydrogen process. They are saying, okay, but we don't have a serious counterparty because all the guys who are developing green hydrogen in Europe, they are small PowerPoint companies. We feel that within two years or three years, they won't be there to deliver what they committed to. Therefore, it creates an opportunity for us because we are credible, we have those relationships, we know how to handle gas, that's part of our DNA.
We have probably one of the two best projects from a location point of view in Norway. I think we see competition, but we don't see serious competition for now. The key for us is to be able to use the experience of Alltec, who has built and operated small green hydrogen projects, use that, use our process engineering capabilities, integrate that efficiently, and finance it in the most efficient way. We have subsidies, but we should be able to get additional support from the state. Don't make any mistake on the off take. On the off take, we have a lot of discussions, a lot. As we keep saying to our team, let's mature those discussions because it's not a great, it's an OTC market, it's over the counter market. Every deal is different. The same molecule in Agder can be sold to 15 different parties.
Each of those parties want a different deal. It's not like the gas or the power that we sell. We press the button and we sell it on the market or we sell it through a feed-in tariff, super simple. This is completely different and it's very good because we like that, because we like to extract more for our shareholders. It takes time to mature those discussions. The more we progress our project, the stronger we are in those discussions with our partners. That's the key project. Jean Michel, there is also the technologies developed by Cryo Pur. I very briefly talk about Cemex, our carbon capture. We made an announcement, we signed a partnership with them. Cemex is one of the world's largest cement manufacturers and they need to decarbonize their activities.
We use Cryo Pur technologies that have been very successful from an operational point of view in biogas. Now we apply it to the cement business. There we see a lot of competition because there are so many technologies available. So far, the technologies have not delivered what they were supposed to deliver. When we talk to Olseme, when we talk to the Chinese players, when we talk to Cemex, Heidelberg, all the key guys, they're all telling us we need technology that is able to reach the standard that we need in terms of CO2 purity and in terms of low concentration of CO2 within our industrial fumes.
I think, yes, we see competition, but we feel that with the Cemex pilot that hopefully will be as successful as what we did on the biogas, we will be able to show that Cryo Pur technology and the cryogenic process is the most efficient process and it will bring quite a lot of business towards us. Sorry it took five minutes for outlining the different parts of the businesses, but it was a very good question. Thank you, Jean Michel.
Merci Julien. My question was very short, very quick, and your answer was very comprehensive. It's good to know that there is some competition in some areas. It's very challenging, and it's full of opportunities. Merci.
Okay, I think there's been quite a few questions on the chat and the Q&A. What I suggest maybe is to take by activities. There was a lot of questions around the CHP and also [on gas] in Lorraine. Maybe if I start on some of the questions. Hopefully some of them have been answered during the presentation. There was a few questions around the CHP. How many are we going to install this year and what price? As we mentioned, there's Angres and Rouvignies. So 2 CHP in Angres and 2 in Rouvignies. Angres is ready to connect. We are waiting for the last authorization and maybe I'll leave just after Julien to give an update as he's been quite involved in the discussion. When we get the last piece of paper, we are ready to connect.
Rouvignies will be shortly after as we are finalizing the tying into the grid. As I mentioned during the presentation, the feed-in tariff remains a floor. We have got the feed-in tariff for both the four CHP in Angres and Rouvignies. Given where energy prices are, we are expecting to basically enter into the feed-in tariff, which means that I think it was a question from Cornelis. Today, around 40% of our French portfolio is under feed-in tariff. With those four additional moving to the feed-in, that will be around 57% of that portfolio under feed-in tariff. I don't know, Julien, if you want to give a quick update on the—just to finish up on the CHP on this authorization that we've been discussing and agreeing with the government.
Yeah, it's the Three Parties Convention, as the government calls it, between the RGM Ministry of Environment and us to have access and control the number of wellhead or former, sorry, former decoration sites in northern France. It's been a long back and forth over now, almost three years on this. We expected to get it signed three weeks ago because we had one of the ministry who confirmed in writing the agreement on the convention. The convention is in final form and now to be in a position to give you, to make an announcement over the next few days on the signature of this agreement. We're almost there.
The sites, the first two sites are ready and as I said during the presentation, we will be updating with much more details the rollout of the new sites in northern France once we get the final list. There are two lists. One is 12 sites and another one is 18 sites for implementing our new CHPs in northern France. We're almost at the end of this very painful session with the government. By the way, the terms that we've achieved are very positive terms and are in line with what we've discussed with you. That is, we take only charge of the gas aspect and we don't have to deal with the rest of the liabilities.
I think there's a question from [Thomas Lombard] as well.
[Foreign language]
For each, the paper, if you want, or the approval that needs to be published, gazetted, as we say, officially signed, is commercial. It's a three-party convention between the parties that I mentioned, between you. As you know, how it works is you go through those negotiations with different parties of the government, and once it's signed, you go through the pipes of the signature. That's why it stands at the moment. We were supposed to get it signed by [Ferracci and Runacher], our former Ministry of, you know, a couple of weeks ago. It didn't happen. One signed, the other didn't have time to sign. We have to wait until the new ones came on board. I think [Liscua] gave the green light to the other minister, and hopefully we'll get it signed. It's a matter of days, as I said.
Once we've got this signature, the next one for each of the sites, we don't need any of the conversion. This convention will cover all the site. For each site, what you have to do every time anywhere in, I think, in Europe is construction sites. You need to have the construction approval. We already have a significant portion of that. Out of the 18 potential sites, we already have half of that, so that's done. The OTM, so authorization to install the equipment on site, that's also the case in some of the sites. It's relatively simple moving forward, and it's all local. It doesn't go back to the central government anymore.
I have a last question regarding the Cemex pilot. It's not clear to me, is it running yet or will it run in a few months?
No, it's not running yet. We are building the equipment as we speak. It's a modular equipment that can be moved to other sites if necessary. That's 100% Cryo Pur technology. I think it will be up and running in the first half of 2026, most likely in Q2. That's between April, May, and June. To give you the full flavor on that pilot, we have certain performance criteria that we need to hit. One is the volumes that we are dealing with. Two is the purity of the CO2 we are providing at the end of the process. Those are the key criteria. We will run this pilot for six months, and if we hit those targets for the period, we will be moving towards an industrial 10 x bigger installation on the first site in Poland of Cemex.
As a reminder, the deal with Cemex is that if we are successful and we decide on the rollout, it's a pan-European rollout on all of their sites, which could have implication also on future developments with Cemex for now, potentially outside of Europe at some point in the future. Okay.
Hopefully we have answered most of the question on CHP . If I move to the gas and natural hydrogen in Lorraine, I think there was questions around whether we'll review the reserves based on the drilling wells we are doing and what could be the export. I think there's a few questions from [Francois Lamy] around the natural hydrogen.
Okay. In Lorraine, I think it's most likely we will do an update of reserve. The objective of this campaign is not really to upgrade the results. I think we have enough reserves on our book in Lorraine. The key goal of this campaign is production, to show that we are transforming reserves into cash. That really is the key. The beauty of this campaign is that it's on the site that has already been partially built and we kept intact from the previous campaign. This site is already connected to the distribution grid via a pipeline that has been built by the local power and gas operator and distributor called Energies. That's where we already are. We are on the market and that's a positive. Yes, over the next two years we will do an update of reserve. The key really is production and it's the key focus.
The team has been on how to de-risk this site and we will drill those first two wells, make an assessment before we get to the next phase of the campaign. The next development phase could be much more significant, but we want to have a final assessment after we've drilled those two wells and we've got the production numbers, the desorption number, and all the parameters that are necessary to assess the updated viability and economics associated with this project in Norway.
Okay. I don't think there's any other question from what I see on the.
On the gas, there is one question from Dominique Chauvin, [Foreign language] . I'll do it in English. Sorry. The question is about the claim that we made against GRTgaz. GRTgaz is now called NaTran and it's the gas transportation company in France. We've updated the numbers of our claim. In September we had a session, a long session with the judge in September and the lawyers and GRTgaz on both sides. The regulator confirmed that our claim was valid, that GRTgaz was not doing its role as allowing an energy producer or gas producer in France to connect to the grid, connect to the pipeline. It's confirmed that GRTgaz NaTran is in breach and we continue this discussion. The memo is about 2,600 pages. It's quite painful, but it continues. We don't have a final date for the decision from the judge.
It's at the commercial court, but they had to bring some experts. It takes time. The total amount is about EUR 12 million. EUR 12 million in our favor. Sorry, just to be clear, it's not something we have to pay, it's just plus plus for us, it's just gas that we were not able to sell to the market and we should have sold over the past five years.
Okay, so maybe in the interest of time, I think there was a few questions if we go back to Norway on the biogas and the green hydrogen and then maybe a few questions on numbers on the biogas. There was some question about when are we going to commission Stavanger and the status of Alltec. I can take that one. Hopefully it has been also explained into when we present it. Stavanger, we mentioned we are waiting for the last approval for the construct permit. We are fully permitted on Halsa, so Halsa is very likely. Okay, can you hear me? Okay. Halsa is fully permitted. This one is likely to be pretty much commissioned at the same time as Stavanger. We're expecting towards early 2027. While we have started the construction for Halsa, we are discussing offtake contract for our fourth installation in Norway.
As Julien mentioned, we are in discussion with a few actors that are willing to take not only a biogas home run project, but for the project, all of the project we have. This is well on track and associated obviously to the offtake. We're also in discussion alongside the subsidies we got, as I mentioned, to project finance that at a lower cost of capital. That was on the biogas. I think there's some questions on Agder and maybe a question for you. Yeah, Julien from Rothschild around the risk and profile for H2 projects versus the rest of assets and technologies.
Yeah, a couple of things. One is the strategy of the group. We decided in 2020 that we wanted to look at all the renewable natural gas, green gas or whatever we call them. Hydrogen was definitely one of them. Actually, we did that a bit earlier than that because we started in 2018 with the activity in Lorraine. We look at all those gas because we feel comfortable with gas. We feel that we cannot reach our 2050 zero or some even lower targets that the EU has put forward and each of the governments in Europe has put forward without a portion of that fuel being used in Europe being hydrogen. We were not happy with what we saw in 2020, 2021, 2022 in hydrogen. We thought that there was a lot of hype and, you know, our philosophy is we don't like just to follow the trend.
We try to use our brain and think through those issues and we don't like to overpay our entry into any business or any new activities. We were monitoring a lot of assets and we decided to go into hydrogen in Norway because we thought Scandinavia was the only place in Europe where we could see a real business case for green hydrogen because power is relatively cheap and infrastructure for transport for export via the maritime sector is quite well developed. We thought that was the opportunity. We spent time monitoring the various companies that were involved. A lot of PowerPoint companies, as I said, a lot of developers that have very limited experience in bringing an idea into real tangible assets that are producing an energy that is sold over the next 20 years to somebody. We just waited until we saw an opportunity that fitted our case.
This opportunity was [unclear]. That's how we, that's the strategy to go into entering H2. From a tactical point of view, why do we allocate, how do we allocate and how do we compare? We compare that to the other assets that we have in the portfolio. Let's take a step back. If we could only grow the business with abandoned mine methane, that's what we would do because abandoned mine methane is the best risk reward we have in our portfolio. There is no doubt about it. The reality is that there's a limit as to how we grow this activity. From a strategic point of view, again, we thought it was a good idea to get into those other types of gas, low-carbon gas. Therefore, you know, we had to go into those space.
When we look at what are the competition in terms of capital, we have renewable natural gas and hydrogen. When we look at the risk profile, what are the differences? Hydrogen, the technology is less mature. Therefore, what we've done is we used a lot of our process engineering skills Cryo Pur to up our game into hydrogen and try to reduce as much as we could the risk of technology by forcing some changes on the supplier of equipment. That's the first thing too. It's a contractual risk. We reduce that by having very, very tight negotiation on the contract. On the offtake, we see a market developing, maturing slowly, but we see a massive opportunity on the market side. There are players who have built, who have purchased infrastructure, that is boats that are running on hydrogen.
We see that more and more in Norway because you cannot enter the fjord, the World Heritage fjord, if you have a boat that is not zero emission. We see a massive demand coming up in Norway for hydrogen and there is no production. We feel that our bargaining power at the table is going to be quite positive. As I said, that's why we didn't want to enter in 2020. We thought it was way too early. There was a massive hype, then it went down significantly. We feel that we bought the assets at a relatively good price at the time where we will be able to be on the market and be one of the first, if not the first in Norway to have a supply of power, of significant supply of hydrogen when the market demand is coming through.
We see that already we have a lot of demand for hydrogen and it needs to be transformed into a stake agreement. We feel that we are in the right momentum, in the right timing. Now we compare that to renewable natural gas. Renewable natural gas, the risk is not only cryogenic process, this is something we control ourselves. It's not on the digestion, anaerobic digestion process. It's more on the external stuff. Supply of your feedstock, how do you deal with the digested, you know, the stuff that remains after you transform your waste into gas and CO2 and on the offtake side.
We take all those parameters into account, and at the end of the day, what we realize is EUR 40 million of investment in hydrogen can deliver the sort of double-digit returns that we are looking at and potentially could be slightly more profitable than our renewable natural gas. Assessing all those risks, not just the technological risk, we decided to press ahead and move forward in a modular approach with the Agder project. We do not go for a big project straight away. We keep in mind that Alltec has built and has operated 1 MW and 5 MW hydrogen projects.
Now we are moving to 20 before going to 60, but we did not go straight to a bigger project. This modular approach is the same on the biogas we have with Cryo Pur, which has done in the past 75 normal meter cube per hour, 150, 250, 500, 700, and now we are going to 2,000 because we feel comfortable enough to go to the next stage. We always keep this modular, agile approach, assess all the risks, not just the technological risk. At the end, if from an economic point of view we are in the ballpark of where we feel comfortable investing money, then we go for it. I compare it again, last one, to solar.
Solar is at the very end of our priorities in terms of capital allocation because yes, the technological risk is low, but of course the returns are insignificant compared to what we are looking at in our portfolio.
Okay, thanks, Julien. I think we've tried to answer most of the questions that we got on the chat. I think there was a last few questions maybe on the numbers and also what our expectation for fiscal year 2026 and to a certain extent beyond, as we mentioned, 2026 will be very much a year of investment. I think we spoke at length about the authorization on the CHP and also the rollout of the activities there and also the addition of the biogas business and the hydrogen that will kick off in fiscal year 2027. Expectation in terms of numbers pending the authorization in France, we should see those 4 CHP starting production as soon as we get the authorization. That will contribute for the exercise 2026.
Bearing in mind, as I mentioned, we will sell under the feeding tariff at EUR 80 per megawatt hour and for the rest it would be the business as usual in terms of the volumes we will produce from our existing business. There was some question around Greenstat and Alltec. We expect, as I mentioned, Alltec to at least doing the base revenue they've been doing over the last exercise, which is, you know, around EUR 9 million revenues a year. Greenstat, there was a question from Anis. What we brought from Greenstat is the Agder project. In the meantime we were using the staff to finish some of the EPC contract we had. That's why we had some revenues last year. The main purpose of Greenstat is redeveloping Agder.
The contribution from Norway on the side business of what we're doing that is building and producing from our low-carbon project will be coming from Alltec. You're right, I think there was some question around the margin. EPC contracts or EPC business doesn't bear the same margin that we do for example on other businesses. That's between 15% and 20%. Nonetheless, given the pipeline of project we have and the economicity we do have on all of these projects, we are confident in terms of the guidance we provided which set the EBITDA margin at above 50%. In summary, next year we'll be very much continuing the investment we've started on this project. You will see the translation and the recognition of revenues starting from the exercise 2027, which start in July. Basically 2026.
Sorry, in English. Are you going to rationalize further your portfolio of projects? Maybe. Specifically, I would think one of the key candidates if we were to rationalize our project portfolio is solar, because that's where we see less value added and therefore less margin for our business. Keep in mind that we've developed solar as a natural add-on in the areas where we operate already on specific sites that are wasteland that cannot be used for anything else. There is a value, an optional value in solar in the sense that you can potentially do autonomous sites of production by having power, green power, biogenic CO2 to do potentially some issue developments. We feel the assets that we have are a bit on the low end in terms of size. That's probably again a bit too small to develop larger issue projects.
This is potentially a candidate for rationalization of our portfolio of projects, but the rest we are at the heart of what we are trying to achieve. I don't think, you know, we review every year all our projects, but I don't think we have seen a candidate that drops out of our portfolio for now. That doesn't mean that we cannot bring a partner in some of our projects to crystallize value for our shareholders, lower the CapEx burden on our side, and show that we can attract very serious industrial partners, not just Saint-Gobain, not just offtakers as clients, but also real industrial partners, not just Cemex but other real industrial partners in some of our key projects. That might be something on the table. It depends on the opportunities.
It depends on how fast those discussions are going and how much operational we are ready to give up at this stage. We are continuing to progress our projects as a 100% basis controlled by FDE. I can see already showing up the 2030 target again. Yes, it hasn't changed and we will be giving more details on each of the developments that we've highlighted in our growth plan earlier on as we get along and as we make progress and new permitting being awarded on the various parts of our portfolio. Thank you so much for taking the time. I think Ronald will be in touch with most of you moving forward and we'll be absolutely delighted to see you at the shareholder meeting which will happen on the 5th of December in Paris. Thank you so much for your time.
Thank you for your continued support and I look forward to giving you good news in the next few weeks.
Thanks everyone.