biogas.6 eng tc

8/8/2019 Biogas.6 Eng TC

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Biogas Production Plant with the capacity of 1 MW / h

° investment /financing / loan value: 6,250,000 - 7,000,000 Euro;

° co-financing value (EU funds): 4,375,000 - 4,900,000 Euro (70 %);

° shareholder’s contribution: 1,875,000 - 2,100,000 Euro (30 %);

° required infrastructure and raw materials:

° land within / outside the built up area: 2-3 ha (depending on equipment capacity);

° energy infrastructure (for power supply in National Energy System);

° 15.500 - 17.000 tons vegetal mass / year;

° approx. 4.500 tons wastes of animal origin / year (necessary for the mixture with the vegetalmass, in Biogas Production Plant);

° number of employees: 17 persons;

° tThe business may be developed on a Start up type firm or on an existent firm;

° total incomes / 10 years: 33.252.020 Euro;

° total expenses / 10 years: 16.877.931 Euro;

° loan value: 6.250.000 Euro;

° interests value / 10 years: 2.890.625 Euro;

° gross profit / 10 years: 16.374.089 Euro;

° net profit / 10 years: 14.016.220 Euro (before loan reimbursement);

° cumulated net surplus / 10 years: 9.769.278 Euro (after loan reimbursement).

N.B.: the production of electric power and thermal energy from renewable resources is the onlybusiness in Romania in which its carryon and profit obtaining is regulated by the national

legislation and the one of the European Union !

General Information

Biogas:

• is a gas produced by the anaerobic fermentation of certain organic substrata, with a content of over 5%methane;

• the electric power and thermal energy obtained from the gas produced in the co-fermentationinstallations make part from the category “Renewable Energies” or so called “Green Energies”, etc.

Methane bacteria:

The methane bacteria act in the anaerobic fermentation process: The necessary environment conditions are:

• anaerobic environment;

• temperatures from 15 °C to 55 °C;

• pH values from 6.5 to 8.0;

• avoidance of the slowing factors, such as: heavy metal salts, antibiotics, disinfectants, etc.

Advantages:

• costs saving for electric power and thermal energy;

• incomes from the sale of electric power surplus;

• incomes from the sale of thermal energy surplus;

• obtaining of 3 green certificates for each 1 MWh produced and delivered by electric power producersfrom the sources provided for at art. 3 par. (1) letter d)-i), according to Law 220-2008 and Law 139-2010;

• obtaining of one more green certificate for each produced and delivered 1 MWh granted in addition to the provisions of art. 3 par. (1) letter d (according to Law 220-2008 and Law 139-2010), for theelectric power produced in highly efficient cogeneration in plants using renewable energy sources.

Biogas Potential

The use of wastes of animal origin, organic wastes and other types of biomass as energy source depends

greatly on their availability. The availability and use are strictly dependent on the national and EuropeanUnion’s energetic and environmental policies. Wastes (of animal origin) and other types of organic wastes co-fermentation in biogas plants represent an integrated process. Besides the production of renewable energy,the process includes environmental and agricultural benefits, such as:

Cumulated net profit:9.769.278 Euro/10 years



• money saving by the farmers;

• fertilizers’ efficiency improvement;

• reduction of greenhouse gases emissions, etc.

Biogas Production:

• any raw material containing organic substance, vegetable raw materials (energetic plants), wastes of animal origin, as well as residues from food industry may be taken over in the fermentation process;

• this raw material, hereinafter referred to as “substratum” or “co-ferment” is classified in substratum of animal origin (wastes) and substratum of vegetal origin (vegetal mass);

• depending on their origin, these substrata must be subject to different treatments before their entry inthe process;

• the most common is the dry fermentation process in mesophyll field (co-fermentation), etc.

Process Description, Co-fermentation, Cogeneration, Fertilizer

Raw materials used in biogas production plants:

In biogas production plants, the said may be produced using numerous and different types of sources. Theorganic material is essential as type of biogas generation source and as starting point in the production

process. The organic material should not contain wood (lignin) because the bacteria in the plant cannotprocess such substance.

Co-fermentation (biogas production):

The biogas is obtained as result of the metabolism of methane bacteria, in an anaerobic environment, in the

absence of oxygen and light, by the methanization and metabolism of the organic mass.

The methane bacteria can exist in optimal conditions only when the environment in which the biomaterial is

present has sufficient humidity (the contents of dry matter is lower than 50%). The operation range of the

methane bacteria is from 5 to 700C. The mesophyll stems exist at temperatures of 35-45

0C, and the

thermophile stems at temperatures of 45-600C. The essential conditions for methanization process

occurrence are, among others, the pH value in the substratum, the quality and continuity of the supply withnutrients, substance’s surface, the inhibitors existing in the substratum, the loading of the fermentation

space, elimination of the gas from the substratum using the mixing mechanisms, as well as the retention.

The anaerobic fermentation is produced by the biological decomposition of the organic substance in theabsence of oxygen and light, within a certain temperature window, by means of the methane bacteria. Theselection of the fermentation temperature is decisive for gas exploitation, for biomass retention in theanaerobic process, as well as for substratum’s quality from fermentation residues point of view. The gas

extraction plant operates at a temperature ranging 35 to 42

0

C, when it’s working with mesophyllfermentation. The operation manner represents a continuous process of gas storing / flowing. The resultedgas mixture includes methane up to 75% of its volume. The other components, listed in the order of theirnominal value, are carbon dioxide, water and hydrogen sulfide.

Before using biogas for energy production, the primary gas is subject to physical dehydration and biologicaldesulphurization. Biogas dehydration before its utilization in energy production has as purpose the

preservation of the heat number and thus, the increase of its yield, avoidance of pressure loss in pipessystem, as well as corrosion prevention. In order to avoid by condensation the water participations in theprimary gas, the gas line will be cooled, and by descending under dew temperature point, condensation isproduced and thus water elimination from the gas. This water resulted from condensation is returned in thesubstratum mass, as water for ferments processing.

For the precipitation of the hydrogen sulfide, air is blown in the gas pipe. The elementary sulfur, which

remains on substratum surface, will improve dung’s quality. The primary gas, after eliminating the hydrogen

sulfide is then passed, from low pressure gas containers, through the ferments, in post-fermentationcontainers and storage of the fermentation remains containers and then will be used.

Cogeneration (biogas turning to account):

Definition of "cogeneration":

• it comes from the fact that in the turning to account process of the biogas produced in co-fermentation,both electric power and thermal energy results.

Cogeneration:

• the biogas produced by fermentation of the organic matter in the substrata is subject to processes suchas desulphurization, drying, etc., being subsequently used also as fuel for internal combustion engines.From these co-generators (CHP) electric power (green energy) and thermal energy are resulting. Theterm of “tri-generation” is not correct, because the agent “cold” does not result from the CHP, as somesay, since in order to produce it, an additional module for thermal agent transformation is required.

Electric power :

• CHP engine develops on its coupling a mechanical energy that is applied to an electric generator. Thesaid will deliver electric power that may be used in our own company or delivered in the nationalnetwork. CHP is equipped with an automation board, which has as role to synchronize the frequencyand voltage with the national network, to monitor the operation parameters and to adjust the loaddepending on the available gas.



Thermal agent:

• As any internal combustion engine, CHP engine must be cooled;

• The heat delivered by the engine is recovered in a heat exchanger, together with the heat from theexhaust gas and used for process heating, namely a considerable quantity remains at beneficiary’sdisposal.

Products resulting from the Biogas Production Plant:

From the process itself it results:

• Electric power (1 MW / h), which may be delivered in SEN (national network);

• Thermal agent (0.75 MW / h), which may be used in our own company (hot water for slaughterhouse,

animal breeding hall heating, pre-heating of the process water, etc.), for a greenhouse, cereals dryersheating, wood drying, etc., or may be converted (in part) with additional equipment in electric power orcold;

• Fermentation sludge - (10.815 to/year), in the aqueous state in which it results from the processcontains all the inorganic substances that were contained by the substrata entered in fermentation, butthe said are not linked anymore to the organic part.

Equipment, Technology, Price

Land: purchase and preparation 300,000

VAT 72,000

Licenses and technology 50,000

VAT 12,000Raw materials and materials 300,000

VAT 72,000

Constructions - (buildings, storehouses,etc.)

350,000

VAT 84,000

Machineries & Equipment 3,625,000

VAT 870,000

Project management expenses 335,000

VAT 80,400

Cars, transport and insurance 60,000

VAT 14,400

Other capital costs 20,323

VAT 4,877

Total cost 5,040,323

VAT 1,209,677

Estimated basic cost 6,250,000

The following works are not included in the offer:

• Project and financing plan preparation;

• Authorizations and approvals from the authorities,

• Analysis of soil compaction degree / bearing capacity;

• Studies or special tests prescribed by the authorities;

• During mounting – to make available a three-phase current connection, water;

• Telephone with separate number during warranty;• Insurance policy during construction.


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Energy Assignment / Sale / green certificates

Synthesis: Law 220-2008 and Law 139-2010

Chapter I: General Provisions

Art.3(1) The promotion system of the electric power produced from renewable energy sources, hereinafterreferred to as promotion system, established by this law is applied for the electric power delivered in theelectrical network and/or to consumers, produced from:

e. biomass;

g. biogas;

(2) The promotion system established by the present law is applied for a period of:a. 15 years, for the electric power produced according to the provisions of par.(1), in new groups / power

plants;

(7) In case of the electric power produced from renewable sources in cogeneration, the promotion system isapplied for the electric power produced in highly efficient cogeneration qualified according to the regulationsin force, the producers having the right to opt either for the production scheme for cogeneration, or for thepromotion scheme provided for in this law.

Chapter II: The promotion system of electric power production from renewable sources of energy

Art.4(1) For the promotion of electric power production from renewable energy sources the promotion systemregulated by the present law is applied.

(2) The level of the national target regarding the weight of the electric power produced from renewableenergy sources in the final gross consumption of electric power in the perspective of the years 2010, 2015and 2020 is of 33 %, 35 % and 38 %, respectively.

Art.5(1) The Transport and System Operator issues on a monthly basis to the producers green certificates for thequantity of electric power produced from renewable energy sources and delivered to the suppliers and or end

users.

(2) The producers of energy from renewable sources benefit of a number of green certificates for the electricpower produced and delivered according to the provisions of par. (1), including for the quantity of electric

power produced in the trial period of groups/power plants’ operation, as follows:

d. 3 green certificates for each 1 MWh produced and delivered by the electric power producers fromthe sources provided for at art. 3 par. (1) letter d)-i);

(4) For the electric power produced in highly efficient cogeneration in plants using the renewable energysources provided for at art. 3 par. (1) letter d)-i) in addition to the provisions of art. 3 par. (1) letter d) one green certificate is granted for each 1 MWh produced and delivered.

Art.6(2) The producers that deliver electric power based on direct contracts transmit on a monthly basis to theTransport and System Operator data regarding the quantities of electric power produced from renewablesources.

Chapter III: Green Certificates Trading

Art.9

(1) The producers of electric power from renewable energy sources and the suppliers will trade the greencertificates in the centralized market of green certificates, as well as in the market of the bilateral contracts of green certificates.

(2) The trading framework of the green certificates in the green certificates market is ensured by the TradingCompany «Opcom» - S.A., as operator of the electric power market, according to ANRE regulations.

(3) Until achieving the national targets, the green certificates may be traded only in the domestic market of green certificates.

Art.10

(1) For the period 2008-2025, the trading value of the green certificates in the markets set forth at art.

9 par. (1) is ranging between:a. a minimal trading value of 27 euro / green certificate; and

b. a maximal trading value of 55 euro / green certificate.

Chapter VI: Marketing of the Electric Power produced from Renewable Energy Sources

Art.13

(1) The producers of the electric power from renewable energy sources sell the produced electric power in theelectric power market at market price.

Art.14

(1) In order to achieve the national objective regarding the power from renewable energy sources:

a. Romania may, by joint agreements with European Union Member States:



(i) provide and agree upon transfers of quantities of electric power from renewable sources toanother Member State;

(ii) cooperate at the implementation of joint projects regarding electric power production fromrenewable energy sources;

(iii) harmonize, in whole or in part, the national promotion schemes.

Chapter IX1: Origin Guarantees for Electric Power, Heating and Cooling Produced from Renewable

Energy Sources

Art.181

(1) In order to prove to the final consumer the weight or quantity of energy from renewable sources withinthe energy mix of a supplier, the system of origin guarantees of the energy production from renewablesources is established, according to objective, transparent and non-discriminatory criteria.

Green Certificates Market – General Description

OPCOM – Green Certificates Market Operator – the legal entity ensuring the trading of the greencertificates and that determines the prices in the Centralized Market of green certificates, fulfilling thefunctions provided for by the Regulation for the organization and operation of Green Certificates Market(ANRE Order 15-2005).

Green Certificates - document certifying a quantity of 1 MWh of electric power produced from renewableenergy sources.

Mandatory Quotas System – promotion mechanism of the production of electric power from renewableenergy sources, by the acquisition by the suppliers of mandatory quotas of electric power produced from suchsources for sale to the served consumers.

Mandatory Quotas System Operation for the promotion of the electric power produced from renewableenergy sources involves the following steps:

° ANRE – The regulatory authority sets a fixed quota of electric power produced from renewable energysources, which the suppliers are obliged to buy;

° ANRE – The regulatory authority qualifies on a yearly basis the producers of electric power fromrenewable energy sources, in order to obtain green certificates;

° the producers receive for each unit (1 MWh) of electric power delivered in the network, three greencertificates, which may be sold separately from the electric power in the Green Certificates Market;

° in order to fulfill the obligations, the suppliers must hold a number of Green Certificates equal to the

imposed quota of electric power from renewable energy sources;° the value of the green certificates represents an additional gain received by the producers for the “clean

energy” they deliver in the networks.

The additional price received for the sold green certificates is determined in a parallel market, where the benefits to the environment are transacted.

The value of the green certificates is determined by market mechanisms:

° by bilateral contracts between producers and suppliers;

° in a centralized market organized and managed by OPCOM.

The price of the green certificates varies within an interval (Pmin ÷ Pmax) fixed by Government Resolution.The minimum price is imposed for producers’ protection, and the maximum price for consumers’ protection.For the period 2008-2014 green certificates’ trading value is framing between a minimal trading value of 27 euro / green certificate and a maximal trading value of 55 euro / green certificate. The value in RON will be

computed at the average value of the exchange rate set by the National Bank of Romania for the month of December or the previous year. (Law 220-2008).

Actors:° ANRE – the Regulatory Authority;

° The producers of electric power from renewable energy sources;° The suppliers;° OTS - Transport and System Operator;° OPCOM.

The annual Mandatory Quotas of green certificates for the period 2008 – 2020 are:

2011 = 10,0 %; 2012 = 12,0 %; 2013 = 14,0 %; 2014 = 15,0 %; 2015 = 16,0 %;

2016 = 17,0 %; 2017 = 18,0 %; 2018 = 19,0 %; 2019 = 19,5 %; 2020 = 20,0 %.

ANRE role:

° it qualifies the electric power producers in the eligible SRE, for the participation in green certificatesmarket;

° it sets annually the minimum price and the maximum price for the green certificates;

° it follows up the fulfillment of the mandatory quota by the suppliers;

° it applies penalties for failing to fulfill the quota.



Electric Power Suppliers (i.e. CN Transelectrica SA):

They are obliged to buy annually a number of green certificates equal to the product between the value of the

mandatory quota and the quantity of electric power supplied annually to the final consumers.

Role of Transport and System Operator:

° it receives monthly from the producers and from Networks Operators to which the said are connectednotices regarding the quantities of EP-RES delivered in the networks;

° it issues monthly green certificates to the producers for the quantity of EP-RES produced and deliveredin the network in the previous month, etc.

The amounts of money resulted from penalties application, collected by the Transport and System Operator

are allocated annually by ANRE, based on objective criteria, for investments, in order to facilitate the accessto the transport/distribution network (Law 220-2008 and Law 139-2010).

OPCOM role:° it registers the participants in the Green Certificates Market;° it forecasts and makes public the demand and supply of green certificates at national level;° it registers the bilateral contracts of green certificates trading between the producers of electric power

from renewable energy sources and the suppliers;° it establishes and manages the Green Certificates Register;° it assures the trading framework for the green certificates in the Centralized Market (GCCM);° it receives the sale / purchase offers of the green certificates from the producers / suppliers (consumers);° it sets and makes public the Closing Price of the Centralized Market of green certificates and the number

of green certificates traded monthly in the Centralized Market of green certificates, etc.

Scheme: Green certificates (GC) trading:

Concept: Tacoma Consulting, Source: ANRE, OPCOM, OTS, Law 220-2008 and Law 139-2010

Results of green certificates trading in the Centralized Market

Year / trading month Numberof bidders

No. of sale offers

No. of purchase

offers

Traded volumeNo. of green

certificates

Closing Price of GCCMRON/certificate

2005 decembrie - - - 56 165,00

2006 decembrie 36 3 33 101 155,00

2007 December 31 10 21 4.304 142,72

2008 December 46 12 34 7.213 194,09

2009 October 33 12 21 9.668 215,34

GC notices issued imposes penalties for non-compliance

quota consumedfulfillment GC

supply demand

GC notice issued

penalties

seller buyer

measured valuesof delivered EP

payment

GC issue

OTS receives the amounts from penalties

ANRECertification Mandatory quota

OPCOM

ProducerEP-RES

EP-RES SupplierMandatory quota

EP consumpt.

GC Re isterNetworksoperators

OTS

payment

OPCOM

List of alltransactions

List of valid GC

-

Poduceraccount

+ -

Issuedcertificates

+ -

Supplieraccount

+ -

Usedcertificates

- +



Project Circuit (structural funds)

The actual component of the consulting team

senior consultants:

○ Deac M.S. (CPSA: 6619.91, 6920.3, 7021.1, 7022.1, 7022.11, 7022.12, 7022.13, 7022.14,7022.15, 7022.16, 7022.2, 7022.3, 7022.30),

○ Dragomir C. (CPSA: 6619.91, 7022.11, 7022.2, 7022.3, 7022.15, 7022.16, 7022.30),

○ Popescu E.N. (CPSA: 6619.91, 7022.11, 7022.2, 7022.3, 7022.15, 7022.16, 7022.30),

○ Orban I. (CPSA: 6619.91, 6920.3, 7022.11, 7022.15, 7022.16, 7022.2, 7022.3, 7022.16),

○ Szakal I. (CPSA: 6619.91, 6920.3, 7021.1, 7022.1, 7022.11, 7022.12, 7022.13, 7022.14).

consulting parteners (tehnical):

○ Attila Törzsök (marketing),

○ Moldoveanu C. (designing / architecture),

○ Conon V. (endurance),

○ Lemák R.M. (I.T : soft / hard ),

○ other consulting partners (selected according to projects necessities).

consulting companies:

○ leading contractors:

○ Tacoma Consulting Romania - 2007-2010 (CPSA: 6619.91, 6920, 7021, 7022),

○ International Consulting Romania - 2002-2010 (CPSA: 6619, 6619.91, 6920, 7021, 7022),

○ Abacus Romania - 2004-2010 (CPSA: 6619, 6619.91, 6920, 7021, 7022),

○ LTT Halo Romania - 2007-2010,

○ other partner companies (selected according to projects necessities).

Tacoma Consulting

tel: +40757-649.117 / +40729-431.550

e-mail: [email protected]

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