Olive Mill Waste Management Project
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Waste management for olive mills - Developing tomorrow needs
Agenda
- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps
2
Waste management for olive mills - Developing tomorrow needs
Concept
Input
Output
Impact
Value creation
Raw materials
Products/commodities
Net Revenues
Investors yield 100%
150 Tons Leafs
Olive oil 100 Tons
118K
5000 Tons Solid
Energy 3.958MV
3.5 Million
10000 Tons Liquid
Polyphenols 15 Tons
7.5 Millions
100% each year
Total Waste 15,150 Tons
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Waste Management for Olive Mills Project
Significant importance of the polyphenols as they are major antioxidants
ANTIOXIDANTS,
, ANTIMICROBIAL, CARDIOVASCULAR,, DISEASES,, PREVENTION,
ANTI%CARCINOGEN, ANTI%MUTATION!
Source:!!Published!data!on!the!eect!of!an5oxidants!
Waste management for olive mills - Developing tomorrow needs
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The polyphenols market is of high interest for pharma & agricultural uses
Ingredient)for)pharmaceu2cals)on)Cardiovascular) diseases) ) Fito)M.)et)al.)Atherisclerosis,)181,)149@158,)2005) ) "Oxida'on*of*LDL*is*a*hallmark*for*atherosclerosis*and* coronary*heart*diseases*development.*One*of*the* earliest*steps*in*the*genera'on*of*oxidized*LDL*is*the* lipid*peroxida'on*of*polyunsaturated*fa>y*acids.*Lipid* peroxida'on*and*its*chain*reac'on*in*LDL,*can*be* interrupted*if*LDL*lipids*are*protected*from*free* radicals*by*an'oxidants,*such*as*phenolic)content)of) olive)oil)"* * Preliminary)clinical)trials)has)been)completed)under) LIFE)ENVIRONMENT)PROGRAM,)No:)LIFE013)ENV/ GR/000223,)and)more)research)could)be)funded)to) boost)the)use)of)polyphenols)in)the)pharma)industry))
Ingredient)for)biological)pes2cides)and)bio@fer2lizers) ) ) Paraskeva,)C.)A.)et.)al)"Water)environment) research",)Volume)79,)Number)4,)April)2007)) ) "Olive*mill*wastewater*(OMW)*produced*from*small* units*sca>ered*in*rural*areas*of*Southern*Europe*is*a* major*source*of*pollu'on*of*surface*and*subsurface* water.*In*the*present*work,*a*treatment*scheme*based* on*physical*separa'on*methods*is*presented....*The* concentrated*frac'ons*collected*in*the*treatment* concentrates*were*characterized*by*high*organic*load* and*high*content*of*phenolic*compounds.*The* concentrates*were*tested*to*examine*their*toxicity* towards*undesired*herbs.*The*polyphenols*concentrate* could*be*used*as*bioKpes'cide*in*small*dosages*or*bioK fer'lizer."" ) )
Source:))Published)data)on)the)eďŹƒciency)of)polyphenols)
Waste management for olive mills - Developing tomorrow needs
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Agenda
- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps
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Waste management for olive mills - Developing tomorrow needs
Goal is to produce high value added olive polyphenols investing on an olive mill waste management unit
Motivation Facts • • • •
.........
New technology Abundant raw material High market demand High environmental benefit
Today
Final stage
Concluded • Planning phase • Revenue Model • Site selection • Team recruitment • Technology use • Permits & patent rights obtained • Initial funding options 7
Waste management for olive mills - Developing tomorrow needs
World Status Greece has 10 times higher production of olive oil than the US and 15% of global production
World Production Italy 25%
Spain 30%
Other 23%
Tu r k e y 7%
Greece 15%
Olive mill waste in Greece Rest of Greece 50% Facts • Greece production: - 2.0 Million Tons Olive Oil - 2.5 Million Tons of waste each year - 750 Tons of waste in the island of Crete only • US production: - 0.2 Million tons Olive Oil
Island of Grete 50%
Waste management for olive mills - Developing tomorrow needs
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Market Status Olive mill waste can be used in the production of power, cosmetics or bio-fertilizers, but is currently unused in Crete
Waste management status for Olive Mills
Electrical power
Cosmetics
Agricultural
• Environmental Pollution & Negative impact at Local communities • 120K> Annual cost for Olive Mills
• Renewable energy, high demand, country policy support • Secured supply sale price for 25 years
• Infant stage of a developing market • Multi-use of phenols in all kind of pharmaceutical and organic products • Minimal Global production, only one company in the world develops polyphenols from Olive waste
• Bio-fertilizer production • High export demand
Medical Final research phase 9
Waste management for olive mills - Developing tomorrow needs
Market Demand Cosmetics and specialty chemicals for agriculture markets are very prominent at an international level with low competition and high barriers to enter
Environment Pollution
High Demand Country Policy
Developing Market Antioxidants
No Competition bio-fertilizer
Waste of Olive Mills
Electrical power
Cosmetics
Agricultural
120K> Annual Cost for Oil Mills
Fixed Sales Price for 25 years
Minimal Global Production only 1 company currently
10K / Kg Export
Medical Final research phase
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Waste management for olive mills - Developing tomorrow needs
Competitors Few competitors operating worldwide, offering purified polyphenols at prices between 5K-3M per Kg
World Companies
Poly- phenol Producers
• • • • •
Price per Kg to final market
Creagri Inc, (California) a Pfizer spinoff BIO-Botanical Research Inc. Olivus Inc Creagri Inc Johannes Bürger Ysatfabrik GmbH
$10,000 $5,000 $800,000 $50,000 $3 Million Our cost $700 / per Kg
Local Waste management
• Olive producers using olive seed • Olive mills sell olive seed for $45 per Ton
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Waste management for olive mills
Agenda - Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps
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Waste management for olive mills - Developing tomorrow needs
The capital investment is dedicated to plant equipment and partially subsidized by approved EU funds
ASSETS' CAPITAL' INVESTMENT' ' WORKING' CAPITAL' ' ' ' TOTAL'ASSETS' ' ' ' ' '
2,500,000'$' ' ' '200,000'$' ' ' ' ' 2,700,000'€'
LIABILITIES' 93%' ' ' 7%' ' ' ' ' 100%'
EQUITY' ' EU' SUBSIDIES' ' DEBT' ' ' TOTAL' LIABILITIES'
1,000,000'$' ' '800,000'$' ' ' '900,000'$' ' ' '2,700,000'$'
37%' ' 30%' ' ' 33%' ' ' 100%'
The'interest'rate'for'the'debt'is'assumed'equal'to'12%' Note:&The&assump.ons&&for&the&business&plan&are:&1)&a&20%&tax&rate&on&the&profit&and&a&50%&prepay&in&the&beginning&of&each&year&2)&An&increase&on&the&opera.ng&cost&of&3.0%&annually,&3)&An&increase&on&the&selling&price& of&each&MWh&by&0.3%&annually,&based&on&the&contract&signed&with&Regulatory&Authority&for&Energy&(RAE)&of&Greece.& Source:&ADIVA&HELLAS&&business&plan,&July&2011&
Waste management for olive mills - Developing tomorrow needs
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The capital investment to establish the plant is dedicated to plant equipment and is equal to ~$2.2M Investment$required$on$$ each$bucket$(M$)$ 2.5$ 0.3$
2.2$
Other&
Total&
0.2$
2.0$ 0.4$ 1.5$
0.1$
0.7$
1.0$ 0.6$ 0.5$
0.0$ Equipment&
Materials&
IT&systems&
Studies&
Legal&expenses&
Cost$buckets$ Fence$
Power$Generator$
Filters$
ConstrucCon$plan$
ConstrucCon$insurance$
FloXaCon$unit$
Sheds$&$Buildings$
Electrolytes$
Grant$plan$
Social$Insurance$fee$
BoXling$unit$
Water$Supply$
Security$system$
Pharma$&$Agricultural$studies$
ConnecCon$to$the$Grid$
Cooling$tower$O$Dryer$
Resins$&$membranes$
SoQware$and$IT$system$
Fees$for$the$company$foundaCon$
InstallaCon$
Polyphenols$drying$unit$
TransportaCon$fees$
ProducCon$monitoring$system$
Increase$of$share$capital$
Means$of$transportaCon$
PyrolyCc$material$
CablesOAutomaCon$
Expenses$prior$to$operaCon$
Source:(www.vioparet.gr;(ADIVA(HELLAS(
Waste management for olive mills - Developing tomorrow needs
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Capital expenses to expand the plant either at start on after the 1st year of operation up to $500K 0.5$
0.4$
0.3$
0.0$
0.0$
Installa1on&
Social&Insurance&fee&
0.5$
0.1$
0.1$
0.3$
0.2$
0.1$
0.0$ Power&Generator&
Cooling& tower&8&Dryer&
Pyroly1c&material&
Total&
Cost%buckets%
The$$addi(onal$investment$of$$500K$will$be$dedicated$on$acquiring$ equipment$$to$increase$$the$power$genera(on$capacity$of$the$plant$ ! Note:!The!expanded!plant!could!be!set!form!the!beginning!or!a8er!the!ďŹ rst!year!of!opera;on! Source:!ADIVA!Hellas!business!plan!
Waste management for olive mills - Developing tomorrow needs
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Operating expenses in 1st full operation year up to ~$1M
OpEx%of%year%2% break/down%(000$)% 1,000%
55.2%
34.5%
7.1%
3.3%
995.6%
162.3% 800%
168.3%
600%
400%
192.0%
372.9%
200%
0% Maintenance(Transporta:on(
G&A(
Salaries(
Packaging(
Marke:ng(
OďŹƒce(Lease( Equipment( insurance(
Total(
Cost(buckets(
Main(opera:ng(expenses(are(the(maintenance,(( transporta:on,(G&A(and(salaries(costs( Source:%ADIVA%HELLAS%%business%plan,%July%2011%
Waste management for olive mills - Developing tomorrow needs
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Revenues projections till 2036 for the main products of the plant: Polyphenols and Energy
Revenues'(M$)' 20'
15'
15'
15'
15'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
16'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
5'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10'
10' Polyphenols'
15'
Oil' Energy'
10' 10' 7' 6' 5'
5' 5'
5'
2' 0'
5'
2' 0'
1'
2'
2012' 2013' 2014' 2015' 2016' 2017' 2018' 2019' 2020' 2021' 2022' 2023' 2024' 2025' 2026' 2027' 2028' 2029' 2030' 2031' 2032' 2033' 2034' 2035' 2036'
Polyphenols*are*the*main*source*of*revenue* Note:&The&assump.ons&&for&the&business&plan&is&an&increase&on&the&selling&price&of&each&MWh&by&0.3%&annually,&based&on&the&contract&signed&with&Regulatory&Authority&for&Energy&(RAE)&of&Greece.& Source:&ADIVA&HELLAS&&business&plan,&July&2011&
Waste management for olive mills - Developing tomorrow needs
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Solid business model developed to project the profitability of the investment
Year Production Ravenues Mwh Current 253€/MWh 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
4.563 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957 13.957
$1.593.283 $4.887.636 $4.902.299 $4.917.006 $4.931.757 $4.946.552 $4.961.392 $4.976.276 $4.991.205 $5.006.178 $5.021.197 $5.036.260 $5.051.369 $5.066.523 $5.081.723 $5.096.968 $5.112.259 $5.127.596 $5.142.978 $5.158.407 $5.173.883 $5.189.404 $5.204.972 $5.220.587 $5.236.249
Ravenues Revenues Ravenues Total Operating oil 0,5€/Kg Polyphenols Costs 300€/Κg $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542 $163.542
$0 $1.034.976 $2.069.953 $5.174.881 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763 $10.349.763
339.536 € $117.797.711 $3.925.018 $215.275.063
Τόκοι
Depreciation
EBT
Tax
Profit
Payback
Cash Flows
New Invest
Acc. Cash Flows
$0 -$455.400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-$703.985 $61.732 $2.499.743 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.923 $11.098.742 $11.067.320 $11.034.620 $12.409.577
-$455.400
$237.498.987
$671.370 $1.015.811 $1.046.285 $1.077.674 $1.110.004 $1.143.304 $1.177.603 $1.212.932 $1.249.320 $1.286.799 $1.325.403 $1.365.165 $1.406.120 $1.448.304 $1.491.753 $1.536.505 $1.582.601 $1.630.079 $1.678.981 $1.729.350 $1.781.231 $1.834.668 $1.889.708 $1.946.399 $2.004.791
$206.820 $109.265 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$139.875 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $185.415 $45.540 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$738.760 $4.775.664 $5.904.093 $8.992.340 $14.149.642 $14.131.138 $14.111.678 $14.091.234 $14.069.775 $14.047.269 $14.163.559 $14.184.400 $14.158.554 $14.131.525 $14.103.275 $14.073.768 $14.042.963 $14.010.822 $13.977.303 $13.942.362 $13.905.957 $13.868.041 $13.828.570 $13.787.493 $13.744.763
$517.132 $3.416.841 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.406 $11.098.225 $11.066.803 $11.034.102 $12.374.560
$0 $917.097 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-$703.985 $517.132 $2.499.743 $4.610.432 $6.885.048 $10.803.984 $11.306.761 $11.291.288 $11.275.032 $11.257.966 $11.240.066 $11.319.218 $11.345.436 $11.329.428 $11.307.923 $11.285.445 $11.261.965 $11.237.451 $11.211.872 $11.185.194 $11.157.384 $11.128.923 $11.098.742 $11.067.320 $11.034.620 $12.409.577
$336.997.790 $33.637.369
$316.085
$1.854.150
$301.190.185 $61.616.786 $239.573.399
$917.097
$237.954.387
$1.756.825 $6.086.155 $7.135.794 $10.255.429 $15.445.062 $15.459.857 $15.474.697 $15.489.581 $15.504.510 $15.519.483 $15.534.502 $15.549.565 $15.564.674 $15.579.828 $15.595.028 $15.610.273 $15.625.564 $15.640.901 $15.656.283 $15.671.712 $15.687.188 $15.702.709 $15.718.278 $15.733.892 $15.749.554
$221.628 $1.358.823 $1.293.662 $2.107.293 $3.345.659 $2.824.377 $2.820.390 $2.816.202 $2.811.809 $2.807.203 $2.844.341 $2.838.964 $2.829.126 $2.823.602 $2.817.830 $2.811.803 $2.805.512 $2.798.950 $2.792.109 $2.784.978 $2.777.551 $2.769.817 $2.761.767 $2.753.391 $1.370.203
! 18
Source:(www.vioparet.gr;(ADIVA(HELLAS(
Waste Management for Olive Mills Project
Operating expenses projections till 2036
Opera&ng) Expenses)(M$)) 2.5)
2.0) 1.5) 1.6) 1.5) 1.4) 1.4) 1.4) 1.3) 1.2) 1.3) 1.2) 1.1) 1.2) 1.1) 1.1) 1.0) 1.0)
1.5)
1.0)
1.6)
1.7)
1.7)
1.8)
1.8)
1.9)
1.9)
2.0)
0.7) 0.5)
0.0)
0.0) 2012)2013)2014)2015)2016)2017)2018)2019)2020)2021)2022)2023)2024)2025)2026)2027)2028)2029)2030)2031)2032)2033)2034)2035)2036)2037)
Note:)The)assump&ons))for)the)business)plan)are:)1))a)20%)tax)rate)on)the)proďŹ t)and)a)50%)prepay)in)the)beginning)of)each)year)2))An)increase)on)the)opera&ng)cost)of)3.0%)annually) Source:)ADIVA)HELLAS))business)plan,)July)2011)
Waste management for olive mills - Developing tomorrow needs
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The plant is designed based on proprietary technology developed in Germany by Dr. Niebelsch端tz
Proprietary*technology*is*revolu3onizing*the*olive*mill*waste*water*treatment*for*the*produc3on*of*polyphenols* * * * * * * * * * * German*patents*are*registered*under*the*numbers:* * 19828054*C1** * 10*2007*041*806!
! Note:!The!patents!could!be!found!in!!h4p://www.argus:umwelt.de/Research.html! Source:!ADIVA!HELLAS!!business!plan,!July!2011!
Waste management for olive mills - Developing tomorrow needs
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The plant will be constructed on a 750m2 area in BIOPA Rethymnon Area%map%
Business%zone%of%Rethymno%map%
A"lease"is"already"signed"for"an"area"of"750m2"at"â&#x201A;Ź"415/month,"while" an"addi<onal"such"area"is"available"upon"request"at"a"lower"price" Source:(www.vioparet.gr;(ADIVA(HELLAS(
Waste management for olive mills - Developing tomorrow needs
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Production: Simple batch process to produce the high value added product of olive polyphenols & power
Olives' treatment' waste'
Filtra/on' through'fabric'
Ac/vated' carbon' ďŹ ltra/on'
MicroďŹ ltra/on'
Hydrogen'
Electrolysis'
Olive' polyphenols' concentrate'
Aqueous' waste' Index' Process'
Power'
Major'product' Secondary'product'
Source:(ADIVA(HELLAS((business(plan,(July(2011(
Waste management for olive mills - Developing tomorrow needs
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Secondary process in place to reach the final product
Final&product&for& agricultural&uses&&
Olive& polyphenols& concentrate&
Spray&& drying&
Olive& polyphenols& powder&
Index& Process& Major&product& Final&product&
Further&processing&required&if&final&use&is&to&be&an&ingredient&in& pharmaceuAcals,&according&to&set&specificaAons&from&final&customer& Source:(ADIVA(HELLAS((business(plan,(July(2011(
Waste management for olive mills - Developing tomorrow needs
23
Lean organization structure serves the flexibility of operations
Plant&director&
Engineers&(4)&
Lab&technician&(4)&
Admin&StaďŹ&#x20AC;&(1)&
Driver&(1)&
! Note:!The!plant!will!be!func3onal!for!24!hours!!and!there!will!be!three!shi9s!per!day!of!the!engineers!and!the!lab!technicians! Source:!ADIVA!HELLAS!!business!plan,!July!2011!
Waste management for olive mills - Developing tomorrow needs
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Agenda
- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Step 25
Waste management for olive mills - Developing tomorrow needs
Team Management Team of Phase A
Michael Verykakis
Dr. Horst Niebelschütz
Dr. Fenia Markydaki
Harris Kalofonos
!
Executive Director Avida Hellas Renewable Energy (Crete)
Professor of Chemistry Berlin University (Germany)
Senior Associate, Global Strategic Planning at Sandoz (Germany)
Development Officer (USA)
• Founding member of Project • Conducted professional various renewable energy projects in Germany for 20 years with companies like: Royal Dutch Shell, Deutsche Bank, Deutsch Bahn • Extensive development management experience in solar parks and waste management units in Greece for 12 years • Graduate of Cologne University, Germany
• Expert in renewable energy and waste management project • Patent owner of high press hydro energy extraction • Worked with German Government and Companies such as: Schering AG, Varta AG, Biermann AG, Behala AG, BMW AG, Metro
• Worked for Boston Consulting Group across the EU focusing on the Pharma industry & strategic planning • Prior to BCG, worked as a consultant for Sepracor Inc. (currently Sunovion) in the US, & at Bayer AG and Fraunhofer Institute in Germany • Graduated Tufts University, Boston MA
• Responsible for Investor Relations of the Project. • Works as a consultant for the International Olympic Academy and a Fundraising office of USAW • Worked with companies such as Asics and Liberty Mutual
More than 30 years in business
More than 35 years in consulting and business
More than 9 years in research and business
More than 10 years in business
Waste management for olive mills - Developing tomorrow needs
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Agenda
- Context - Market Landscape - Investment Analysis - Team on the Ground - Next Steps
27
Waste management for olive mills - Developing tomorrow needs
Licensing process can be expedited by Invest in Greece
Licence&type& 1.
Permit&of&establishment&with& environmental&memo&for& low&nuisance&
2.
Construc;on&permit&
3.
Contracts&with&the&raw& material&(olive&mill&waste)& suppliers&
4. & !
Energy&produc;on&permit&
Required&;me&to&issue& 1E&2&months& & & & 1&month& & & 2&weeks& & & & 2&weeks&aGer&contracts&with& suppliers&&are&signed&!
Responsible&desk& Ministry&of&Environment& & & & Construc;on&Agency&of& Rethymnon&(Poleodomia)& & Director&of&the&plant& & & & Regulatory&Authority&for&Energy& (RAE)& &
For&total&value&of&investment&&just&above&$3M,&the&licensing&process& could&be&processed&on&fast&track&by&Invest&in&Greece&Agency& ! Note:!www.inves-ngreece.gov.gr,!www.rae.gr,!www.poleodomia.gov.gr! Source:!ADIVA!HELLAS!!business!plan,!July!2011!
Waste management for olive mills - Developing tomorrow needs
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Olive Mill Waste Management Project
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Waste management for olive mills - Developing tomorrow needs