development of the production of alternative, environmentally- friendly mode of consumption...
TRANSCRIPT
Presentation of the project Enterprise creation for for the production of
industrial wood pellets at the Crimean republican enterprise «Crimean grain elevator»
Main goals of the project:
Development of the production of alternative, environmentally-friendly mode of consumption
(granular solid fuel) from renewable sources, exactly from plant biomass
Strengthening agriculture and energy potential of Crimea
Improving the socio-economic and investment and innovation activity in the Autonomous Republic of Crimea, as well as directly in Simferopolsky region
Increasing revenues to the budgets of all levels and state funds
Solving social and economic issues in rural areas through the creation of new jobs with year-round
employment
The potential of Crimea’s resource base
The main raw material for the production of alternative fuels are crop waste. 20% of the collected straw can be directed to the production of alternative fuels.In Crimea the average annual potential of the resource in the straw of cereal crops is 458,4 thousand tons (based on 2008-2012)., with low productivity of grain crops amount of straw that can do for biofuels, will be 272,5 thousand tones.
РАЗДОЛЬНОЕ
ЕС
БА
СЕВАС ЛТА
АК
ФЕОДОСИЯ
ВЕТСКИЙ
ЕГОРСКИЙ
К
АЛУШТА
130 000 т 125 000 т
60 000 т115 000 т
Name of the district where economically feasible to place the plants for biofuel production The total capacity of lines, t/h
Annual productivity,tonnes/year
The required amount of raw material, tonnes year
Simferopolsky region 10 67,2 80,6Razdolnensky region 10 67,2 80,6Nizjnegorsky region 10 67,2 80,6Leninsky region 5 33,6 40,3Total 35 235,2 282,2
Information about the production of alternative fuels in Crimea
According to the Ministry of agricultural policy and food of the Autonomous Republic of Crimea in the Crimea 7 companies produce solid biofuels, with a total capacity of lines - 21 thousand tons/year.
The project concept
Create a new line of production at the Crimean republican enterprise «Crimean grain elevator» urban village Gvardeiskoe, Simferopolsky region
The project includes the construction of a plant for the production of solid biofuel capacity of 65,000 tons/year of finished products
Kind of finished product - fuel pellets from waste grains (wheat, barley, oats, rice).
General volume of investments – 1609,5 thousand USD. The period of investment development - 2 years.
Features of the project
The project is the first industrial production of alternative solid biofuels with capacity of over 65,000 tons per
year in Crimea
The project can be used as a typical to create a new production of alternative
fuels to other areas in Crimea
The project can be used in the development of the national program to modernize the boiler at social and communal areas in the rural areas of
Crimea in order to replace use of natural gas and search of budget
financing of these activities
Predictive markets of production distribution, tons
Index 1st year 2nd year 3rd year 4th year 5th year
External market (EU countries)
0 14790 42840 44200 45560
Internal market, including
556 16610 21560 21800 22040
objects of public sector
556 14000 14000 14000 14000
other domestic consumers
0 2610 7560 7800 8040
Own use 4 24 24 24 24
Total 560 31424 64424 66024 67624
Consumption of industrial wood pellets in Europe The consumption of industrial pellets in Europe by analytical calculations of various experts will be in 2020 from 20 to 50 million tons per year.
Local European producers are willing to offer only 81 % of the total consumption of biofuels.
At the end of 2011, only the Netherlands, Belgium and Great Britain have consumed more than 4.5 million tons per year of industrial pellets, part of which close to half for co-firing.
Almost all European energy corporations invest in the construction of their own productions pellet, mainly in North and South America , not to depend on third-party suppliers of granules
Location of "Crimean grain elevator"
Ukraine, the Autonomous Republic of Crimea, Simferopolsky region, urban village Gvardeiskoe
Planned location of production and support facilities
1
•manufacturing premises for pelletizing straw
2
•warehouse for finished products
3
•shed for storage of straw
4
•office building
5
•checkpoint
6
•fire department post
7
•control truck scales
8
•garages
9
•workshops
10
•transformer substation
11 12
•sheds for storage of straw
Summary investment costs,thousand USD
Index 1st year 2nd year Total
1. Capital stock 6795,6 4856,0 11651,6
1.1. Buildings, structures and transmission facilities 4531,5 2700,1 7231,6
1.2. Operating machinery and equipment 865,2 843,0 1708,3
1.3. Transport vehicles 1057,9 1128,7 2186,6
1.4 Other capital stock 106,8 38,3 145,2
1,5 Project documentation and unforeseen costs 234,1 146,0 380,0
2. Working capital 790,2 445,4 1235,6
2.1. Funds for working capital financing 790,2 445,4 1235,6
3. Total demand for investment 7585,8 5301,4 12887,3
Schedule of development
Preparatory year
• development of land documents, registration rights for land ownership
• preparatory stage - market research, scientific evidence, conclusion of preliminary contracts passing expertise
• negotiations with suppliers of equipment, machinery, straw
1st year
• attraction of financial resources
• tender process for the final selection of suppliers of equipment and transport equipment, search of executors of works
• building and construction holding utilities and other objects
• manufacture, delivery, installation and commissioning of the first production line of pellet with capacity of 5 tons/hour
• purchase of motor vehicles of the first stage
2nd year
•putting into operation the first production line of pellet capacity of 5 tons/hour•gradual increase in the capacity utilization of the first line from 20% to 98%•manufacture, delivery, installation and launch – setup of the second production line of pellet with capacity of 5 tons/hour
•purchase of vehicles on •the second stage
3rd year
• putting into operation the second production line of pellet with capacity of 5 tons/hour
• gradual increase in the capacity utilization of the second line from 20% to 98%
• utilization of production capacity up to 98%
Scheme of production
Procurement of raw materials (cereal straw)
Raw materials warehouse
Chopper roll and baled straw
Storage hopper-doser
Storage hopper-doser
Millet grains
Wat
er,
stea
m
Harvesting of straw in CrimeaPROCESS
Keeping straw is an operation co-grain harvesting. Additional operations should include baling, loading and transportation from the field to the processing site.
Harvesting of straw is a seasonal event. From the point of view of production the straw should be stored and then gradually processed. Storage capacity must let to keep annual amount of raw materials.
Provision of raw materials and delivery of straw will be produced by own capacity. To do this it’s planned to make a purchase of agricultural machinery and equipment, loaders and road transport .
PRICE FORMATION
Indexunit of
measure
Scenarios of development the value of straw in the field rollsbasic version 1st version 2nd version 3rd version 4th version
Straw price in the field rolls
UAH/ton VAT excluded 5,00 12,50 18,75 25,00 37,50
Annual average production cost of harvesting straw
UAH/ton VAT excluded
18,63 27,75 35,25 42,88 58,00
Average annual total cost of pellets
UAH/ton VAT excluded 70,25 82,50 92,63 102,88 123,13
Average weighted annual average retail price (market price)
UAH/ton VAT excluded 117,63 117,63 117,63 117,63 117,63
Business profitability % 0,04 0,03 0,02 0,01 -0,01
Expected net income for the 5 years of project implementation
thousand UAH 8 566,63 6 322,25 4 436,13 2 536,00 -1 358,38
Forecast period for simple project payback years 0,75 1,13 1,88 4,25-Forecast period of discounted payback period (7% discount rate) years 0,88 1,38 2,13- -
Production indicatorsVOLUMES OF STRAW, TONS VOLUMES OF PRODUCTION OF PELLETS, TONS
1 год 2 год 3 год 4 год 5 год
560.0
31836.0
64204.0 66528.0 67200.0
1 год 2 год 3 год 4 год 5 год
21840
61152
87360 87360 87360
Financial indicatorsSALES VOLUME, THOUSAND USD
NET INCOME, THOUSAND USD
1 год 2 год 3 год 4 год 5 год
56
3493
76958285
8914
1 year
2 year 3 year
1 год 2 год 3 год 4 год 5 год
-327,5
587
24742767
3074
1 year
4 year 5 year
5 year4 year3 year2 year
Efficiency indicators of the Project:
INVESTMENT
Index Meaning Comparative base
Discount rate7,0%
effective rate of the NBU
Net present value of income, thousand USD
6 628 >0
IRR15,7% >d
Discounted payback period, years
7 positive value
BUDGET
Index Meaning Comparative base
Discount rate7,0%
effective rate of the NBU
Net present value of income, thousand USD 2 822 >0
IRR10,7% >d
Discounted payback period, years 9 positive value
Forecast of economic and social effects
Index unit of measure 1st year 2nd year 3rd year 4th year 5th year Total
Net income thousand USD 56 3493 7695 8285 8914 28443
Net profit thousand USD -328 587 2474 2767 3074 8574
Business profitability % - 18,00 34,00 35,00 36,00 32,00
Jobs creating units 28,00 72,00 29,00 0,00 0,00 129,00
Average monthly wage in the enterprise USD 452 336 340 357 375 372
Dividends thousand USD 0 422 2466 3272 3614 9774
The payment of taxes, fees and mandatory payments
thousand USD 92 535 1496 1634 1798 5555
General conclusions1. This project was designed and planned to be implemented in accordance with Ukraine and the
Autonomous Republic of Crimea laws and regulations.
2.This project is in line with Ukraine and the Autonomous Republic of Crimea priorities of development, ensure energy security, development of alternative fuels and implementation of planned government programs.
3. The project is aimed to create an enterprice for the production of alternative fuels and the gradual development of industrial-scale production of granulated fuel from straw of cereal crops to replace natural gas use at social and communal areas in the rural areas of republic, and needs of the Crimean population and other consumers including the European countries.
4. The project will create 129 jobs in rural areas
5. The total project cost is $ 12 887 thousand USD, including working capital financing in the early stages of the project.
Details about the project initiator
The Crimean Republican Enterprise «Crimean grain elevator»The Autonomous Republic of Crimea,
urban village Gvardeiskoe, St. Karl Marx, 101Director - Malyarob Evgeniy (+38 099-212-93-76)
Support of the project Ministry of Agrarian Policy and Food of the Autonomous Republic of Crimea Simferopol, str. Kyivskaya, 81 (0652) 27-67-10 E-mail:[email protected]
Thank you for your attention!