"Turn-key" project about starting a plant to process MSW via pyrolysis and produce green energy under the "Clean City" State Program in Ukraine.
The project is about processing MSW via pyrolysis to produce green energy. Within the "Clean City" state program such a process enjoys guaranteed pay by the government from the "green tariff", as well as exemption from taxes and customs duties.
The President and the Government of Ukraine, realizing the need for energy independence of the country, pay great attention to alternative energy sources. One of them is processing of solid waste by pyrolysis and gasification to generate electricity. For the introduction of this technology in the "State Agency of Investments and Management of National Projects" created the state company "Clean City", which in turn has developed a "Project-Clean City" for the implementation and installation of solid waste processing lines with a number of benefits guaranteed by the laws of Ukraine, namely:
1. Guaranteed payment by the state of electricity produced by a special "green tariff"
2. Exemption companies producing "green energy" from income tax for a period of 7 years from the start of operations
3. Exemption from customs duties and VAT on importation of equipment from abroad.
4. Transfer of the necessary land on which the feasibility study has already been created for the installation of the pyrolysis lines, long-term lease
5. Transfer of ownership of solid waste
This project will be implemented in ten regional centers of Ukraine, including in the cities of Khmelnytsky, Ternopil and Chernivtsi, which are located in the western region of Ukraine within 100 kilometres of each other.
Due to the new government initiatives we want to emphasize that we thoroughly explored in practice the problems that "Green Energy" is addressing. We are one of the few companies in Ukraine, which would implement the project, based on the latest scientific and engineering developments since 2008, in a private manner. We have held talks and meetings with the mayor and CEO of PJSC "power companies", and the head of the "Clean City" State Enterprise, and received in all instances support and understanding. To date, given the State support and guarantees, we can say with confidence that we are eligible and ready to establish the right waste processing plant setup in the city of Khmelnitsky
Brief business case for the ten-year period from 01.01.2015 to 01.01. 2025:
"Green Tariff" from 01.01.2015 to 31.12.2019 is: EUR 111.43 per MW, and from 01.01.2020 to 12.31.2024. - EUR 99,084 http://zakon2.rada.gov.ua/laws/show/5485-17 (The law comes into effect 01.07.2013)
We plan to place an order for the production of equipment in October 2013, the estimated start of the plant will be in December 2014 - 10 months in the making, and 5 months for the installation of the place of dislocation. (Description of the technology and specifications from the manufacturer - supplied).
The estimated cost of "turnkey" plant is $ 14500000 USD, in addition to $ 1 million for the purchase of a sorting line and preparatory works at a construction site, a total of 15.5 million USD.
The components of the gross income of the enterprise:
1. Production and sale of electric power: 4 MW (net) every hour for 300 days a year to accommodate the 65 day preventive measures
Total gross income from the sale of green energy for 10 years is: 30,314,016 EUR.
2. Pre-sorting of solid waste every day for 300 days a year, taking into account the 65 day preventive minimum of 10 tons of selected useful recycled at an average price of 140 EUR per 1 ton
Total gross income for 10 years: 4.2 million EUR.
3. Sale of CO2 emission reductions under the Kyoto Protocol, according to preliminary estimates of the international company "CCB" reducing our emissions for the first four years of 340 000 tonnes of CO2 per one plant at a price of today's offers 5 euros per 1 ton.
Total gross income for 10 years: 36200000 EUR
Suggested investors are to open a personal investment account in the State Bank of Ukraine "Ukreximbank" from where to make transfers to the account of of the newly created joint venture in two stages:
Stage One: 1000000 USD From the first step for the purchase and installation of MSW sorting line and preparation of the construction site
Stage Two: 14500000 USD dollars to install of the factory
Propose to create a joint venture, with equity participation of the investor priority 75 to 25 for ten years, assuming 100% financing of the project on its part to ensure the joint venture area required for installation of plant, electricity substation for the transmission of green energy in the power grid of Ukraine obtaining all licenses and permits.