PROJECT OF CONSTRUCTION OF POWER STATION ON BIOMASS 76 MW IN SINELNIKOVO CITY, DNEPR REGION LLC "NVC "COGENERATION "

PROJECT SUMMARY The main idea is the construction of a 76 MW biomass operating TPP, based on the Budplastic factory in Sinelnikovo city, Dnepr region. It is planned to construct a TPP in Sinelnikovo city, Dnepr region (Jugnaya promzona str 2). It is planned to install 10 modules: two condensing steam turbines with an electric generator and equip the condensation system of the exhaust steam with a turbine to produce electricity. The possibility of using wood chips, wood pellets, sunflower husk granules, pellets from agricultural products wastes, peat was considered.

Importance of the location Raw materials base Railway An analysis of the adjacent territory of the TPP showed that the main local biomass could be: wood chips, granulated waste from sunflower, rapeseed and oilseed crops, as well as peat. The surrounding areas are used in part to grow various grain crops and there are free areas for growing energy willow for the production of wood chips. The nearest railway station of Sinelnikovo at a distance of 1 km from the settlement. Power supply The territory of Jugnaya promzona str 2 is 12.5 hectares and is conveniently located: the distance the nearest 10 kV substation is less than 0,5 km. The are no buildings on the territory. Highway The territory of Jugnaya promzona str 2 is located within the boundaries of the city of Sinelnikovo. It is possible to deliver biomass by trucks. The territory inside the enterprise allows to provide convenient conditions for unloading cars. A large logistic centers in nearby, it facilitates the search for vehicles for the delivery of biomass.

Benefits and prospects PROSPECTS FOR SECTOR DEVELOPMENT THE COST OF ENTRY “THE GREEN TARIFF” PUBLIC SPHERE The practice of building similar new stations indicates the cost of 1kW of installed capacity of $ 3,500. State support for the sector due to “The Green Tariff” and tax benefits. The minimum "Green Tariff" is fixed and is 13.6 euro cents / kWh. According to the Decision of the Energy Community Ministerial Council, Ukraine has taken an obligation to reach 11 per cent of energy production from renewable sources by 2020 (as of today, 6 per cent). Ukraine has sufficient biomass; it occupies the 7th place in Europe in terms of its volumes. The share of plantations will grow significantly in the next 10 years. 4 5 The Green Coefficient for all types of power plants that produce electricity from alternative sources will decrease when compared to the level of 2016. Imported equipment is free of customs duty and exempt from VAT, if the relevant equipment is not produced in Ukraine 1 6 Preferential tariff by the year of 2030 The rental rate for the land that is used for renewable energy facilities is reduced to 3 per cent of the land value compared to the standard rate of 12 per cent 2 Linking tariff to the EUR 3 Monthly regulation of “The Green Tariff" by NKREKP

The key project parameters The main equipment of the TTP is steam boilers and generators of electrical energy. Boilers produced by the Ukrainian plant in the Monastery will be used. These boilers will be structurally upgraded to obtain the required power parameters and improve their thermal efficiency. These improvements are patented in Ukraine. These boilers can effectively work on various types of solid fuel. Overall data on TTP Capacity MW 76 Construction period months 18-214 Staff people 480 “The Green Tariff” EUR/kWh 0,136 Operation time hours/year 8 100,00 Investments EUR 65455238 Technological cycle of the station - unloading of biomass, burning of biomass in boilers with steam generation of power parameters, generation of electricity by a generator due to rotation of steam turbine rotors. The estimated cost of similar projects based on new equipment is about 2500-3500 USD per kW, the cost of our project is about 861 EUR per kW.

The results of the project of the TTP construction Name of indicator Period Construction 1 Production 2 Production 3 Production 4 Profit (including VAT) 66096036 VAT 11016006 Production cost 32614034 EBITDA 33481966 EBIT 31304125 Income tax 5634742 Net Profit  0 25669382 Indicator The measured value Amount Discount payback period - DPP year 3,1 Net Present Value - NPV EUR 268568191 Internal rate of return - IRR % 51 Return On Sales, Net Profit Margin - ROS 39 Return on investment - ROI 32