Business Unit Energy
Decentralized energy supply for a world in continuous operation
The Energy Business Unit serves a global future market with high growth rates. The world is hungry for energy. The population is growing, and with it the demand for electricity for industrial production, electrification, the rapidly increasing number of data centers and air-conditioning systems. Global demand is rising faster than grid expansion can keep up; in some regions the infrastructure is lacking or outdated and insufficiently resilient. The changing energy mix with a growing share of renewable energies also leads to instability, since wind and solar power are not always available and grids – even in many developed countries – are in poor condition. Finally, extreme weather events and acts of sabotage are increasingly creating the need for flexible and reliable decentralized energy supplies.
The portfolio of the Energy Business Unit has been created specifically for this market. The unit bundles all activities related to decentralized energy supply and power generation solutions. Whether for backup or emergency power systems for critical infrastructure such as hospitals, data centers or telecommunications networks, or for primary power sources in remote regions or on temporary construction sites: with our intelligent power generators – so-called gensets – and storage solutions, DEUTZ reliably delivers energy exactly where it is needed.
New subsidiaries Blue Star and Frerk: strong growth drivers for DEUTZ
DEUTZ engines have always been used in power generators; it is a market we know very well and in which we have strong expertise. Targeted acquisitions serve as additional growth drivers for us. The acquisition of US manufacturer Blue Star Power Systems (BSPS) in 2024 was a milestone in DEUTZ’s Energy business: it opened up access to the North American market for power generators.
Blue Star has been growing profitably for years, has a strong dealer network and stands for customer-specific, flexible solutions in the genset market. At the same time, we are strengthening synergies. In 2025, for example, we provided targeted training for technicians from the DEUTZ Power Centers in the USA on Blue Star gensets in order to tap additional service and growth potential in the medium term. Overall, the acquisition of Blue Star has significantly strengthened our positioning as an international solution provider in decentralized energy supply.
The next major step followed in December 2025 with the acquisition of Frerk Aggregatebau: the expansion of the energy business in Europe. Frerk operates seven sites in Germany, is one of the technological leaders among system integrators for diesel and gas emergency power systems, and is firmly established in the segment of critical infrastructures such as data centers. The company not only supplies power generators, but highly integrated turnkey emergency power systems that meet the most stringent requirements for availability and reliability. This market in Europe is benefiting in particular from the rapid expansion of AI applications and ongoing digitalization and is currently growing by 15 to 20 percent per year.
A globally scalable portfolio
Combining Blue Star in the USA and Frerk in Europe creates a globally scalable portfolio for decentralized energy and emergency power solutions under the umbrella of the Business Unit Energy. DEUTZ contributes its engine and system expertise, its industrialization capability and its global service and dealer network. Frerk adds comprehensive system integration know-how and direct access to European data center and grid operators to this structure. Through the acquisition of Frerk, DEUTZ expects additional profitable revenue of around 100 million euros. Building on this, revenue in the Energy business is to grow to around 500 million euros by 2030 through organic and inorganic growth.
Growth with a regional focus
In addition to North America and Europe, the Business Unit Energy is also expanding its business in other regions. In Africa, MagiDEUTZ is being further developed as a production and competence center, particularly for hybrid systems combining generators, batteries and solar technology, for example for telecommunications applications in off-grid regions. In the medium term, DEUTZ is examining further growth opportunities in Asia, especially where existing partnerships in the engine business provide points of entry for the genset business.
Energy as an integral part of the Dual+ strategy
The Business Unit Energy is closely interconnected with all other DEUTZ business areas. It strengthens the traditional engine business through additional volume (Engines), opens up application fields for new technologies such as hydrogen or battery systems (NewTech), offers proven genset solutions for the defense market (Defense), and creates long-term potential for the global service business (Service). At the same time, in line with the Dual+ strategy, the Business Unit Energy helps to broaden the DEUTZ setup and reduce dependence on the cyclical business with combustion engines. With the Energy business, we are setting a clear focus on a high-growth market in which we can fully play to our strengths and expertise.
Interview
How did the Business Unit Energy perform in 2025?
David Evans, Head of Business Unit Energy: 2025 was a very successful year for the Business Unit Energy, both operationally and strategically. The unit further strengthened its role as a growth driver within DEUTZ and set important course for the global expansion of the energy business. With Energy, we are active in a market that is growing structurally and in which DEUTZ has extensive experience and expertise.
What role does Blue Star Power Systems play in this growth?
David Evans: Blue Star is a central growth driver for us, especially in North America. The company is growing profitably, continuously expanding its dealer network and broadening its product portfolio. It was important for us to preserve Blue Star’s strengths and culture while providing targeted support. We have succeeded in doing that.
DEUTZ acquired Frerk Aggregatebau in December 2025. What does this acquisition mean for the Energy Business Unit?
David Evans: The acquisition of Frerk is a decisive step in expanding our energy business in Europe. Frerk is a technological leader in demanding emergency power systems and is very strongly positioned particularly in the segment of critical infrastructures such as data centers. Together, we are extending our offering well beyond the classic generator to highly integrated system solutions.
How do Blue Star and Frerk complement each other?
David Evans: Very well. Blue Star is our strong platform for the North American market, and Frerk ideally complements this structure in Europe. Together we are creating a globally scalable portfolio for decentralized energy and emergency power solutions. DEUTZ contributes its engine expertise, industrialization capability and its global service and dealer network. It’s a perfect match.
Which regions and applications will be the focus of the BU Energy in the future?
David Evans: In the short term, our clear focus is on North America and Europe. In parallel, we are further developing MagiDEUTZ in Africa, particularly for hybrid solutions in off-grid applications. In the longer term, we are also examining opportunities in Asia, especially where existing partnerships offer points of entry.