The main idea of the project is the utilization of sewage sludge from the municipal wastewater treatment plant in Balti to generate electricity, thermal energy and biofertilizers. The corn silo is also used in this project in order to increase the capacity to 3 MW.
Features of the project:
The project is located in Balti special economic zone. The project has a certificate of residence in the SEZ.
The project has:
- A well-developed business plan
- Team
- Technology
- Investments of the initiators of the project up to 30% (EUR 3,000,000)
The project has a preliminary electricity purchase agreement signed with the Guaranteed Buyer; preliminary contract for the sale and purchase of heat energy with ICS Cables & Wires EE LLC; preliminary agreement for the purchase of corn silage.
The project provides for a fixed “green” tariff of 9.44 eurocents/kWh if a “green” tariff is received in 2020 for 15 years after commissioning (based on the draft law).
Project performance indicators:
- NPV – EUR 2,763,000
- IRR – 25%
- Payback period – 4.63 years
Generation:
- Electric, 3189 kWh/year
- Thermal, 3243 kWh/year
Average annual financial and economic indicators:
- Total revenue – EUR 3,076,074
- Total costs – EUR 1,133,249
- EBITDA – EUR 1,942,825
- EBITDA margin – 63.2%
- Depreciation – EUR 481,984
- EBIT – EUR 1,460,842
- EBIT margin – 47.5%
- Loan interest – EUR 506,083
- Profit before tax – EUR 954,759
- Income tax (18%) – EUR 76,381
- Net profit – EUR 878,378
- Net profit margin – 28.6%
Investments:
- Total investment amount: EUR 9,686,000, includes:
- Wastewater treatment line – EUR 2,990,000
- Silage processing line – EUR 1,920,000
- Cogeneration equipment – EUR 1,780,000
- Construction and approvals – EUR 1,000,000
- Other – EUR 1,996,000
Offer to investor:
The required investment amount is EUR 7,000,000 for a 70% share in the project (EUR 3,000,000 are invested by the partner)
