TEDOM, an engineering and energy company, ranks among Europe’s top cogeneration providers, specialising in simultaneous electricity and heat generation. Japanese corporation Yanmar acquired it in 2024 in its largest-ever acquisition. The TEDOM Group CEO Ladislav Zeman discusses the company’s evolving growth trajectory, global expansion plans, and the role of cogeneration in contemporary energy systems.
TEDOM has been operating on the Czech market for more than 35 years, and you are one of the key players in cogeneration in Europe. What are the pillars of your business at present?
In more than 35 years, we have grown from a manufacturer of cogeneration units to a company that addresses all aspects of our customers’ energy needs. Cogeneration remains an important pillar of our business. Since our foundation, we have sold 10,000 cogeneration units to 50 countries worldwide, with an installed capacity of over 2,300 MW. Every year, we deliver approximately 200 to 400 new units to dozens of countries worldwide. In addition, we provide comprehensive ESCO services, including energy supply and purchase.
This reflects how the energy sector actually works today. Companies and institutions are not just concerned with technology; they are concerned with the entire system, and we can cover all its parts. Today, the TEDOM Group has over 1,100 employees and a strong base in domestic production plants in Jablonec nad Nisou, Třebíč, Hořovice, and Výčapy. We are, therefore, an exceptionally strong domestic player and, at the same time, a company with global influence and ambition.
What are the practical implications of TEDOM’s integration into Yanmar Group? Has this provided access to cutting-edge technologies, expertise, operational methods, or expanded investment capacity?
Our cooperation with Yanmar Group gives us a stronger platform for expansion and knowledge exchange, while providing access to international markets, including those in Asia, which are driving the global economy. In previous years, we have grown abroad through the acquisitions of Intergen in Italy and EuroSite Power in the United Kingdom. These moves have reinforced our capabilities in efficient combined heat and power generation, energy services, and digital technologies for distributed energy systems.
You have specialised in cogeneration units for many years. How can you quickly determine whether cogeneration makes sense in a particular case?
If a specific operation requires a stable supply of heat and electricity, cogeneration almost always makes sense. No other source achieves such efficiency because with cogeneration, you essentially produce heat as a by-product of electricity generation in a controlled manner. Cogeneration units are particularly irreplaceable where an outage could be catastrophic, typically in hospitals, heating plants or industrial enterprises. These are segments where we have long had a strong presence in Czechia and abroad.
However, we are also considering the broader energy context. Cogeneration in Europe has long provided approximately 12 per cent of electricity and 16 per cent of heat, but this share is growing. The reason is that production from renewable sources inherently fluctuates; therefore, it is necessary to have a reliable, flexible source that can quickly and reliably supplement them at the right moment. This is one of the things that is driving the cogeneration business forward.
When urban areas shift from a single large facility to multiple smaller units near end users, what are cogeneration’s main strengths and limitations?
The energy transition cannot succeed without cogeneration, largely because of its superior energy efficiency of over 90 per cent. Its ability to integrate with multiple energy sources provides critical advantages for decentralised production, and locating units at end-use sites avoids the heat losses that centralised facilities experience during distribution.
However, related services are also an important part of our offer. Remote operation, timely diagnostics, and, among other things, service intervention within 6 hours, including the availability of spare parts, make us unique not only on the Czech market. This is often just as important for operators, including local authorities, as the technology itself.
Unfortunately, we still encounter market segments that continue to overlook cogeneration. Customers are naturally familiar with the “good old” solutions, whether they are boilers or turbines. In the case of heating plant transformation, however, decisions are made 20 to 30 years in advance. That is why it is important to consider all options, how they fit into operating conditions and scenarios, and the trend.
The good news is that awareness of cogeneration is growing because it combines advantages that other sources simply cannot offer.
How can cogeneration help replace coal in a way that minimises the impact on the price of heat for consumers?
When replacing coal, it is essential that the change makes sense both technically and economically. Cogeneration combines heat and electricity production. Compared to separate production, i.e., traditional power plants or boilers, it can save 10-30% of energy, depending on the type of operation, which is exactly the parameter that helps keep costs under control. Moreover, when well designed as part of a broader energy mix, it can significantly ease the transition away from coal, reducing costs for households and businesses.
And, of course, there is an overlap that can also be quantified in monetary terms. Less air pollution with the possibility of switching to emission-free sources in the future, which is increasingly favoured by legislative and market developments.
What are the most typical TEDOM installations like? What have you learned from these projects, and what would you do differently next time to make the projects easier to replicate?
In the Czech Republic and the region, these are mainly hospitals, heating plants, industrial enterprises, and municipalities. Globally, they also include the municipal sector, agriculture, and shopping centres. Thanks to this, we have experience with both local and multinational players in the energy sector across multiple countries. We also see a strong example of adaptability in Ukraine, where we will soon deliver our 100th cogeneration unit.
These are almost always complex projects where cogeneration is part of a broader solution. It complements photovoltaics well; for example, photovoltaics work when it is warm and only electricity needs to be produced, while cogeneration supplements it when it starts to get cold or when there is less sunshine and heat is needed in addition to electricity.
Can your cogeneration units use gases other than natural gas?
Yes, and this is one of the important advantages of cogeneration in the context of energy transformation. In addition to natural gas, other gaseous fuels are also used in practice, depending on the specific operation, such as biogas, sludge gas or mine gas. Our cogeneration units are already prepared for various types of fuels and their mixtures during installation. This means that customers are not tied to a single setting and can use other fuels, such as biomethane, which is growing in importance. But we are also looking further ahead and are preparing hydrogen applications, among other things.
Thank you for the interview.
