S.C. A6 IMPEX S.A. Dej
STUDY ON UTILIZATION OF RENEWABLE ENERGY RESOURCES
BY THE ACQUISITION OF A 25 MW THERMAL POWER STATION THAT WORKS WITH WOOD WASTE
TABLE OF CONTENTS:
CHAPTER I - INTRODUCTION
1.1 Object of study
1.2 Presentation of the company
1.3 Presentation of the elaborator
1.4 Documentary sources
1.5 Study synthesis
1.5.1. Products / services
1.5.2. Presentation of the investment
1.5.3. Commissioning program
1.5.4. Financing plan of the investment
CHAPTER II – PRESENTATION OF THE ECONOMIC AGENT
2.1 Identification data of the economic agent
2.2 Constitution modality
2.3 Object of activity
2.4 Shareholder structure
2.5 Breaf historical insight
CHAPTER III – COMMERCIAL ANALYSIS
3.1 General aspects concerning the forests of Romania
3.2 Products
3.3 Market and trade
3.4 Evolution and tendencies of the market
3.5 Tendencies of the market
3.6 Commercial management
3.7 Promotion and distribution of the products
3.8 Selling price of the products
CHAPTER IV- ACTIVITY ANALYSIS
4.1 Technical and production capacities
4.1.1. Manufacturing technologies
4.1.2. Presentation of the investments
4.2 Manufacturing factors and their costs
4.2.1 Determining the cost of the investment
4.2.2 Estimated labor costs
4.2.2.1. Evolution of the personnnel structure
4.2.2.2. Annual labor costs
4.2.3 Estimated costs of the raw materials and goods supplied
4.2.3.1. Raw materials, materials and other goods supplied
4.2.3.2. Supply sources
4.2.4 Estimated expenses
4.2.5 Estimated income
4.2.5 Swot analysis
CHAPTER V – FINANCIAL AND ECONOMIC ANALYSIS
5.1 Evolution of the results account: revenues, main financial and economic indicators
5.2 Evolution of the results account: expenses
5.3 Cash flow
5.4 Calculation of installments and interests
5.5 Situation of manufacturing expenses
5.6 Calculation of depreciation
CHAPTER 1. INTRODUCTION
1.1. Object of study:
- the feasibility of the investment in a 25 MW thermal power station in order to produce electricity from renewable resources, that is wood waste.
1.2. Presentation of the company:
The newly constituted company S.C. A6 Impex SA is located in Dej, Bistrita Street No. 63, Cluj County and its main object of activity is: production, distribution and sale of thermal energy and electricity.
1.3. Presentation of the elaborator:
This feasibility study is elaborated by SC A6 IMPEX SA Dej, contact persons:
Physicist Popescu Mircea tel. 0744/620516, economist Baban Hainal tel. 0744/776215
1.4. Documentary study
For the elaboration of the study the following documents were taken into consideration:
§ Financial and economic documents of the company
§ BAT (Best Available Techniques) documentation
§ Substantiation note for the acquisition of the thermal power station
§ Legislation concerning the green certificates obtained for the sell of the electricity
1.5. Study synthesis:
1.5.1. Products / services
By the realisation of this investment it will be produced 25 MW of electricity using wood waste, producing alternately:
- steam in a boiler that uses wood waste as a fuel: 92 t/h, 100 bar, 500 oC
- 25 MW of electricity, using the steam produced by the wood waste boiler
This type of boilers represent a solution also to solve an important environmental problem because they use renewable resources (wood waste) eliminating the expenses occasioned by their storage.
The turbine that will be installed it will be a condensing turbine, which, after the steam relaxation it will reuse the condensate results by sending it to the boiler to be converted into steam.
1.5.2. Presentation of the investment
The investment consists of the purchase and installation of a thermal power station formed by:
- Wood waste storage area
- Unloading equipment, shredding and handling wood waste
- Supply system (conveyors, sorting system)
- Wood waste boiler with automatic system of ash elimination and purification system of the burned gases
- Steam pipe 100 bar ,500 oC for the connection boiler- turbine
- Steam turbine generator that uses the steam produced by the boiler
- Electrical connection to SEN
- solid waste storage (slag and ash)
1.5.3. Commissioning program
Month / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12 / 13 / 14 / … / 22 / 23 / 24 / 25 / 26 / 27 / 28 / 29 / 30Works
Development
storage areas
Steam boiler
100 bar 500 oC, 92 t/h:
-negotiation contr.
-construction
Turbogenerator 25 MW:
-negotiation contr.
-construction
Electrical inlet
The project will be done in two stages:
§ feseability study of the project, obtaining the necessary financing, business plan, negotiating and concluding the contracts of equipment supply and investment works: 6-10 months
§ construction of the power station: 24 months
During the development of the investment it is estimated a necessary staff of 4-5 employees to monitor and manage the investment as a whole. Within 2-3 months before PIF staff will be hired so at the starting of the power station to get to 70 employees.
1.5.4. Financing plan of the investment
The financing sources of the investment will be:
- its own sources in proportion of 20%, constituted by cash contribution of the company’s shareholders
- attracted sources 80%, in which it is estimated the obtention of bank loans but also the attraction of non-reimbursable European funds
The feasibility project is sustained by the positive evolution of the cash flow realized during the analysed period resulted from the incomes related to the production of 25MWh of electricity of which 2 MW will be the consumption of the power station, 23 MW remaining available for sale. The estimated price from the financial forecast is 604 lei / MWh, which includes the value of the produced and sold electricity and the incentive obtained from the state under the form of green certificates.
· The implementation of the investment will generate a cumulative net profit for 10 years, totaling 88, 9 million EUR as shown in the income and expense budget estimated by the company. The profit increases as a result of the increased turnover generated by the growth of sales and trading of the green certificates and as a consequence of the reduced financing costs as repayment of loans.
· The cash flow estimation during the loan period indicates that the company generates sufficient cash surplus, able to cover all operational debts of the company, including those towards the bank
· Investment recovery periodthe way it results from the detailed estimations from Chapter V– 5, 1 years.
CHAPTER II – PRESENTATION OF THE ECONOMIC AGENT
2.1 Identification data of the economic agent:
Company name: S.C. A6 IMPEX S.A
Registration No. within Trade Register: J12/1338/2007
Fiscal registration code: 21381692 / 16.03.2007
Address: Dej, Bistritei Street, No. 63, Cluj
Phone-fax: 0264/ 211331, 0264/223436
E-mail:
Contact Persons: Phys. Popescu Mircea
Eng. Szasz Ştefan
2.2. Constitution modality: joint-stock company
2.3. Object of activity
The main activity is: production of electricity.
Code CAEN (National Classification of Economic Activities in Romania): 3511
2.4. Shareholder structure:
SHAREHOLDERS / Total contribution to the share capital(lei) / Percentage
%
1 / S.C. IASITEX S.A. Iasi / 22.355.200 / 72,5210
2 / S.C.UZUC S.A. Ploiesti / 5.560.630 / 18,0389
3 / S.C. SINTEROM S.A CLUJ-NAPOCA / 660.000 / 2,1411
4 / S.C. CAROMET S.A. / 1.250.000 / 4,0550
5 / S.C. CONTACTOARE S.A. BUZAU / 1.000.000 / 3,2440
TOTAL: / 30.825.830 / 100 %
2.5. Breaf historical insight:
In March 2007 SC A6 Impex SA was constituted as Limited Liability Company having as sole partner SC Somes SA Dej and a capital of 100,000 lei. Given the need of capitalization of the company due to the fact that the company started the infrastructure works at an investment project during the time more capital increases were needed, and also changing the form of organization into a joint-stock company.
Thus, starting with 11/05/2007 A6 functioned as a joint stock company with share capital of 13.381.200 lei.
In 2010 the Extraordinary General Meeting of Shareholders approves the share capital increase of SC A6 Impex SA by cash and in-kind contribution in amount of 12.074.630 lei, from 15.841.200 lei to 27.915.830 lei. In May 2010 there is a new capital increase, with new shareholders so the new shareholding structure is the one described above.
Company’s headquarter is in Dej, on the northern industrial platform. Dej is an important railway junction, a terminal of the lines getting close to the future investment- Railway station Dej Triaj. The town is also crossed by the European highway E579 offering an easy access to the raw materials and the materials necessary for the manufacturing processes of the company and a better development of the commercial activities.
The administrator of the company is Mr. Mircea Popescu, resident in Cluj Napoca, Cluj County, Muscel Avenue No. 8, with mandate availability till 23/08/2014.
CHAPTER III – COMMERCIAL ANALISYS
The general vision is to create a business in order to produce electricity from wood waste given the high priority to national Hoteles and production of energy from renewable resources. The fact that the area is rich in forests and their existence in the area of factories that generate wood waste, the existing infrastructure needed to connect the national power system are just some of the factors conducive to business success.
3.1. General aspects concerning the raw materials supply
As it was mentioned above, the raw material used for the power station will be the wood, so below we’ll present some necessary information concerning the raw material supply.
The total national forest area 6, 4 million Ha of which the public property of the state represents 4, 2 million Ha (65, 6%).
The composition of the forest of Romania important from the point of view of the caloric power of different species is the following:
Resinous 29,9 %Beech 31,5 %
Oak 18,0 %
various hardwood species 15,7 %
various softwood species 4,9 %
In terms of ownership, the forest suffered major changes since 2000, when it started the restitution from the state property towards the private owners. An evolution of the forest structure is shown below (source: Ministry of Environment).
In accordance with the Forest Code (Law no.26/1996), the state public forest area is managed by the National Forest Administration- Romsilva.
Related to the nature of the social and economical functions the Romanian forests are structured as follows:
- special protection functions: 52,1 %;
- production and protection functions: 47,9 %.
The practical method of forest management is regulated by the forest planning. These constitute the basis of forest cadastre and title deed of the State and establish in relation to ecological and socio-economic objectives, the management objectives and measures necessary to achieve them.
Forest plans are elaborated by the Forest Research Institute and other units certified on forest ranges and production facilities for periods of 10 years and they are approved by the central public authority responsible for forestry.
In this study it is analysed the Dej area in order to show the amount of wood and wood waste that exists in the zone.
This study is based on the data provided by the official website of Romsilva and there were taken into account the last two auctions held in 2008 as it follows:
- in Dej area respectively D.S Suceava, D.S Bistrita and D.S Baia Mare
From the calculations resulted:
a) D.S. Suceava the following quantities were auctioned:
- unadjudicated firewood 6.800.000 mc
- wood for pulp total auctioned wood 2.057.000, all the quantity remained unadjudecated.
b) D.S. Bistrita the following quantities were auctioned:
- unadjudicated firewood 1.322.000mc
c) D.S Baia Mare the following quantities were auctioned:
- sold firewood 1.274.000 mc.
Considering that a 25MW boiler consumes about 500.000 m³ of waste wood per year and considering the data presented above, it can be observed the existence of sufficient quantities of raw material for the functioning under normal conditions of the investment objective for which it was elaborated this analysis.
3.2. Products
The only product the plant will produce and trade is electricity.
In the first phase it will produce thermal energy from renewable sources, respectively wood waste. The production capacity is 92 t steam / hour, at the following parameters: 100 bars, 500 C°. The steam produced will unwind through a condensing turbine of 25 MW, producing the electricity that will be delivered in SEN (National Energy System).
Manufacturing capacities:
§ Electricity: 25 MW, of which:
23 MW for trade
2 MW for own consumption
The electricity produced by the 25 MW thermal power station will be delivered in the National Energy System and it will be sold to various distributors or consumers.
According to the European Commission’s Policy to promote the combined production of electrical and thermal energy through the use of renewable sources and wastes this production is supported by subventions called green certificates.
The green certificate is a document that certifies a certain quantity of electricity produced from renewable energy sources and delivered in SEN.
These green certificates are given to the green electricity producers from renewable sources for the electricity supplied in the national energy system as a form of stimulation related to the energy production from renewable sources and they can be revaluated on a market parallel with energy market.
3.3. Market and trade
The use of renewable sources of energy under competitive conditions on the energy market has become opportune by putting into practice the policy of “Green certificates”.
3.4. Evolution and tendencies of the market
The renewable energy sources will be encouraged as it stipulated by the national program for renewable energy sources; these represent an internal source that can help to reduce imports and improve energy supply security by respecting the environmental protection conditions. The renewable energy sources (biomass, hydropower, geothermal energy, etc.) represent an important source, although on the whole their contribution is small.
The initial investment costs are very high in this area, which represents a limiting factor in their development. Therefore in order to overcome this obstacle, a stimulating program started including also a financial component.