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INVESTMENT PROJECT FOR THE CONSTRUCTION OF BIO TPP

(THERMAL POWER PLANT)

IN THE INDUSTRIAL PARK IN MELITOPOL

The project idea is to promote diverse business activities at the territory of the industrial park in Melitopol of the former REFMA plant.  They are the following:

1)  Bio TPP at the area of 4 hectares (the construction is located at the former gas boiler house)
2)  Greenhouses for growing tomatoes at the area of 8-10 hectares
3)  Former workshop building (S – 20.000 sq./m) for construction of a deep-freezer refrigerator and vegetables, fruit and berries storage.

KEY FACTORS OF THE INVESTMENT PROJECT:

1. Construction of Bio TPP with a preliminary capacity of 3 MW of electricity and 12-15 MW of heat:

• The Scientific and Technical Center “Biomass” will be developing a project feasibility study within three months.

For the project, we plan to use an import turbine (condensing   type) with controlled steam extraction;

• A Ukrainian-made solid fuel boiler which uses sunflower pellets and/or energy crops (Miscanthus) and wood waste from forest nurseries as fuel;
• Other Ukrainian-made equipment, to be able to receive a premium of 5% or 10% of the current green tariff;
• The general contractor and the design organization will be selected on tender conditions and qualifications (experience in implementing similar projects);
• The feasibility study will describe the fuel supply section, which will analyze and describe the types of fuel: the purchase of sunflower pellets from large producers within a delivery radius of up to 100 km; cultivation of miscanthus on rented or own lands at a distance of up to 50 km taking into account the supply of additional fuel (wood waste from the two nurseries); investments in logistics; and equipment for own fuel cultivation.

2. For the high profitability of the Bio TPP project, in addition to a green tariff premium, we consider various heat supply options:

– Heat for greenhouses and additional supply of carbon dioxide according to the schedule;
– Heat for the refrigerator and cold storage;
– Heat and hot water for consumers of the industrial park;
– Heat for the city utilities and population with the construction or reconstruction of heating systems at a 2 km length.
A qualified contractor will develop the feasibility study for greenhouses and the refrigerator.

3. Participants (initiators) of the project:

– Isatex Industry (a group of companies without consolidated accounts);
– The owner and developer of the industrial park, land for growing biocrops, and two nurseries;
– Indian Solar, the company with 100% foreign capital, operating in alternative energy, an investor and an EPC company specialized in construction a 4MW solar station in the industrial premises of the industrial park;
–  “Dubovo Agro”, a company specializing in  growing vegetables in the Khmelnytskyi region, interested in building greenhouses and a storage room in the southern part of Ukraine, provided that the heat supplies will cost lower than the gas tariff;

4. The projected cost of investment and project payback periods:

– Bio TPP is about 8 million euros and about 9 years (if the heat is supplied to greenhouses)
– Greenhouses are about 10 million euros and about 6 years (taking into account the availability of exports)
– Refrigerator and storage – about 3 million euros and about 7 years (including the provision of services for own needs and other consumers)

5. The current state of the investment project:

A feasibility study for Bio TPP will be developed in August 2019.

To implement the investment project, it is necessary to attract not expensive long-term financing. The financing will be for a period of up to 10 years with a principal amount of loan deferral for the first two years from the start of financing.[/vc_column_text][/vc_column][/vc_row]