DEMO GBE Factory cases full description

Green Blue Energy Factory

ANNEX II:

DEMO GBE Factory cases full description

BMW plant in Leipzig. technology supplier: WDP Windanlage GmbH & Co.KG

Co-funded by the Intelligent Energy Europe Programme of the European Union

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein.

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GREEN BLUE ENERGY FACTORY

DEMO collection

Venice, February 2014

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ITALY

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SUN nZEB Industry/Commerce Building Project proposal and feasibility study co-developed by the company Rossi DUE S.n.c. based in Marostica (Vicenza) in collaboration with the team of Unioncamere Veneto participating in the GBE FACTORY project.

PREFACE The following pages are dedicated to outline a nZEB project proposal together with the first feasibility study as the outcome of a cooperation and working relationship between the company Rossi DUE S.n.c. based in Marostica (Vicenza) and the team of Unioncamere del Veneto. The importance of such proposal is due not only to the amount of RES investments but also to the possibility to export the solution in other industrial/ commercial buildings in Veneto and in most of North Italy as well as in other European regions.

It is a high value project, since the renewable energy source (PV) Figure 1 - Google map view: Marostica, Vicenza, Italy plays the main role in a civil/industrial structure which will be “nZEB” (Near Zero-Energy Building), with the goal of reducing the energetic consumption to nearly zero and using solar power for the building’s main needs.

This feasibility study is not limited to the use of RES sources, but involves the entire building structure including materials, air conditioning and lighting solutions. Evaluations and proposals are the result of a collaboration with: Construction: VS associati Thermographic analysis: Geom. Dal Cortivo Diego Air conditioning system and PV plant: Ariaclima

Performance objectives and characteristics of the new BUILDING The realisation of an executive commercial nZEB (Near Zero-Energy Building) building is proposed maintaining its costs within the average rate of what is usually spent for regular industrial/commercial buildings in the area of the Veneto Region (piedmont area of Vicenza and Treviso provinces). The average costs are considered with reference to a building that has an underground floor designated for machine parking activity and three surface floors that will host directional and commercial activities.

The involved area will be around 1.000 sqm.

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The new building will include a commercial storage, offices, executive offices, multifunctional rooms for exhibitions/conferences/training courses, meeting room, technical office and concierge room. The roof will host demonstration settings showing renewable energies-related technologies and a panoramic restaurant.

The following picture shows the location.

Building-related data and peculiar functions Specific criteria will be at the basis of the construction of the new building, given the following needs as specified by the customers: • High energy efficiency: The building itself and the plants have to be harmonised in order to create a comfortable environment which, at the same time, should be environment-friendly in terms of low heating emissions and high plant efficient.

• SELFCONSUMPTION: The roof of a PV plant will hold supplies of the energy needed for running the entire building and its activities.

• SPACE FLEXIBILITY: Rooms need to be spacious and suitable for possible different uses in accordance with future needs. The building has to be suitable to permit the installation of the elevators needed for the easy move of the exposed items.

The roof will be designed as an accessible part for the visitors where exhibitions and guided tours will take place. The elevators will cover all storeys – from the basement to the roof – and they will be capacious enough to permit heavy loads. The new headquarters will host educational events together with commercial and cultural exhibitions, conferences, guided tours for schools and also for professionals.

The main concept is a building in which environment protection, energy saving and living wellness are condensed and perfectly matched.

• NO GAS: Given the willingness of the owners to have no connections with the gas network, the whole plant will have to work and to guarantee hot water using other energy sources: this implies the use of electric energy and the auto-consumption of the energy produced by the PV plant.

• LOW MANAGEMENT COSTS AND LONG-LASTING DURABILITY OF THE BUILDING: Low costs have to be guaranteed in terms of energy efficiency as well as maintenance of the structure and of the whole plant.

The characteristic elements of the building can be summarised as follows: • TYPE OF BUILDING: three over ground storeys, basement and accessible roof; • TOTAL SURFACE: 1.000 sqm; • VOLUME: 12.279,00 m3; •7•

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• THERMAL DEMAND (kWh/year): 5.858,00 covered by locally produced electric energy -> Class A+; Epgl= 0.00 kWh/m2year (no gas); • PV PLANT: 35 kW polycristalline roof PV plant; • ENERGY STORAGE: no energy storage in the beginning (input of photovoltaic energy with a system of local exchange); at a later stage, a storage mechanism will take place when storage batteries will be affordable.

FEASIBILITY ANALYSIS CURRENT CONSTRUCTION SOLUTION: in the industrial/commercial areas of the Pedemontana Veneta, there are a lot of prefabricated buildings and concrete framed constructions with bricks and non accessible roof.

For this type of constructions, air conditioning systems are possible only with the cascade condensation boilers with heating devices made from radiators or fan convectors.

Currenty these buildings have the lowest level of energy efficiency required by the law: this is class “C” which means a consumption of 20 kWh/m3year.

In order to evaluate the construction costs for over ground commercial/industrial buildings in the above mentioned area, we considered parameters given by the local chamber of commerce which suggest that the cost would be around 245/310 €/m3. Further costs are the ones related to foundations, basement, infrastructure costs and all the other details not considered by the chamber of commerce.

Management costs will be the sum of the maintenance expenses for structures, construction and plants and the utility bills for energy costs related to air conditioning (cooling and warming) and hot water production.

calculation of air conditioning and hot water production ESTIMATED EPg

Volume

kWh/m3year

m3

12.279,00

Estimated consumption

Fuel

KWh/anno

245.580,00

Methane

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PCI

Cost

Cost/year

KwH/m3

€/m3

€

9,54

0,85

21.880,82

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MAINTENANCE COSTS For information purposes only, the estimate would be: 0,9 €/m3 NEW PROPOSED SOLUTION - “ARIACLIMA” CONSTRUCTION: In order to create a building in line with the described functional needs, where the construction costs will be the average of the ones expected for similar buildings and where the management expenses will be fairly low, it was necessary to analyse the environment where the structure will be placed: this study included solar exposure, shadow, winds etc. together with the analysis of the lot, its building capability and planning restrictions.

The project takes into account all the considered factors and the shape of the building will follow the shape of the lot itself in order to have simple, solid silhouettes to minimize the relation volume/surface and, at the same time, create premises with the required characteristics.

At the later stage, the structure of the building and its stratigraphy were chosen A number of construction techniques were considered, such as: • • • • • • •

Traditional massive construction (wall and attic) Buildings in concrete frame with masonry infill; Buildings in concrete frame with dry infill; Buildings in steel frame with dry infill; Buildings in wood frame with dry infill; Buildings in X-lam wood with dry stratification of the wall; Buildings in reinforced concrete with structured septums;

Both structures with dry and “humid” stratifications have been considered, and a comparison between performance, costs, earthquake safety, versatility, duration etc. has been carried out in line with the customer’s requirements and with the purpose to find a structure which would be simple, versatile, long-lasting and affordable.

The final step will be to realize a concrete structure with external piling 25 cm wide walls with external envelope, monostructure piling ceilings, flat roof covering with caulked upside down roof and pillars, also in piling, supporting the ceilings in the light between wall and wall.

Although this solution is simple and quickly doable, it reduces the weaknesses of insulation with the external coat to the minimum.

Furthermore, the isolating film placed on the external surface of the concrete body allows to maximise the thermal mass of the building itself with a consequent less powerful conditioning system needed.

For the external coat and the isolating film, the chosen material is EPS type DOW STYROFOAM™ ETICS which is installed with glue and finished by Mapei. The advantages of this material are: • The whole package is guaranteed by the supplier: its quality, correspondence and compatibility of the materials of the package; • According to the studies carried out by the supplier, the durability of the isolating •9•

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film is 50 years, estimating its life in 100 years (more than the building life) • The EPS high thermal resistance allows to diminish the isolating film thickness if compared to other isolating materials; • Lighter material and easier installation compared to other materials; • Versatility; • High pressure resistance.

The chosen stratigraphy was evaluated using softwares which measure the hydrothermal reaction in order to avoid superficial and interstitial condensation.

From this evaluation, we could estimate the thickness of other stratigraphic elements in order to minimise the waste of materials and, consequently, the costs. The same process was used to evaluate the stratigraphy of the roof (flat accessible roof), internal walls in proximity of risers, internal walls separating heated and non-heated rooms, elevator compartments, cavities for the trespassing of installations and rain. The thermographic simulation of the building showed that the majority of heat loss was imputable to residual thermal bridges. Once examined, these thermal bridges are: • Ground connection of the building along the perimeter wall • Connection to the sidewalk of the building along the ground floor • Sockets and ventilation grids • Connection of the pillars and concrete structures of the under ground floor to the ceiling of the first floor • Connection of the envelope to the south wall • Internal and external corners • Connection of the ceilings and internal walls on the perimeter wall • Connection of the coverage railing to the highest ceiling.

The analysis of thermal bridges was carried out using a finite element software that shows the thermal stream flowing in the building and the consequent different superficial and interstitial temperatures. Given such results, it is possible to plan a number of corrective actions keeping the costs fairly low. With regard to the transparent elements of the casing, 5 compartments PVC fixtures 70 mm thick have been fitted using a triple neoprene and glass gasket with low emission insulating glass on the north and west sections and low emission triple glass on the south one. This allows to reduce summer thermal loads caused by direct sunlight on the windows installed on the south-facing walls: the triple glass is indeed characterised by a lower grade of solar energy transmissions if compared to the double glass. Solar control glass will be used in the entire doors and windows system. In addition, an external curtain system is going to be installed in order to further block thermal effect of direct sunlight. Given the relevant results in terms of thermal insulation, an air conditioning system called “cold beams” has been realised given its fully functionality when internal loads are particularly reduced.

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The main characteristics are: • • • • • •

Total self consumption of electric energy produced by PV plant Low management and maintenance costs High levels of winter and summer performance High comfort Zone- control management Durability

The most important part of the whole system is the Air Treatment Unit (ATU): its filters purify and make external air hygienic. Treated air merges into another part of the unit which detects and control the latent heat. The function of ATU is to dehumidify air before letting it flow in the distribution unit.

The distribution unit is made of the so called cold beams which are used for cooling, warming, fan, dehumidification. Without fans or movements mechanisms, the air flows thanks only to the pressure generated by the ATU and the particular diffusion for setting the air conditioning in soft modality creating the “coanda” effect.

Temperature is controlled by a series of extremely sensible batteries/ exchangers .

Water temperature in the batteries of ATU and of internal units is controlled by a Polyvalent Unit that can supply both cold and hot water ( Cold Beams are made of 4 pipes). Given the low thermal loads in comfort premises, it is essential to have the possibility to control and manage heating and cooling needs according to the level of exposition and of the number of people in those rooms. Once having set the pressure parameter that Air Treatment Unit (ATU) has to provide to the whole plant, it is much easier to divide the building in sectors.

The ATU will maintain the same parameter regardless of how many areas are active. The comfort of every premise is precisely managed and it is bespoke according to air temperature and humidity.

Also the air flow return is supervised by the Cold Beams: the return canalisation arrives at the UTA which through a highly efficient recovery of heat resubmits the Energy in the system before the expulsion of the air. The whole system is constantly monitored in order to have a case history of the efficiency and of the management costs. The protocol of the Cold Beams plant dialogues with the protocol of the Domotic plant so to manage the use of the electrical Energy produced by the PV plant in a regime of total self consumption.

The use of sodium batteries is being evaluated in order to have an electricity storage of the excessive PV production. Such storage could be used in the time slots when PV is not producing energy. UTA: UNITA’ TRATTAMENTO ARIA RECUPERATORE DI ENERGIA NEW GENERATION EC TECHNOLOGY • Patented system of rotation control • 11 •

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• 10-15% higher efficiency if compared to the traditional AC technology • High efficiency levels in big working areas.

NEW ENERGY NEEDS FOR AIR CONDITIONING AND ACS PRODUCTION

Volume (M3)

NEW CONSTRUCTION “ARIACLIMA”

Estimated consumption (KWh/a)

12.279,00

Estimated EP kWh/m3year

3.829,143

3,5

From the table above, thermal isolation and thermal bridges improvement interventions enable the reduction of the energy needs which will be covered by the PV plant installed on the roof (this is a NO-GAS construction).

TIMING OF THE ACTIVITIES • • • •

PROJECT PRESENTATION AND START OF THE WORKS: 2012 RIUGH COMPLETION OF THE BUILDING: END OF 2013 REALISATION OF EXTERNAL COAT, WINDOWS AND PLANTS: SPRING 2014 END OF WORKS: 2014

CONCLUSIONS According to the proposed solution, a GBE FACTORY can be realised: it will consist of a multifunctional building with expo area on the roof, run by PV-produced energy, characterised by a minimum use of State-supplied energy and total autonomy in the supply of gas-methane.

THE BUILDING IS THOUGHT TO BE A “SERVICE LAB” WHICH DEMONSTRATES THE PRODUCTS AND THE SYSTEMS FOR THE DEVELOPMENT AND SPREADING OF THE RENEWABLE ENERGY SOURCES AND THE ENERGY SAVING IN INDUSTRIAL AND CIVIL CONSTRUCTIONS. The main critical points are: Elimination of thermal bridges.

Choice and fit of windows and doors.

Optimisation of the heating/cooling system in accordance with a flexible use of the premises according the different needs.

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ANNEXES SURFACE PLANIMETRIES and CONSTRUCTION DETAILS

Figure 2 - Computer renderings of the company

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1. FERTITALIA S.r.l.

BACKGROUND AND RATIONALE FOR THE PROPOSED PROJECT “DEMO GBEFACTORY” The aim of the GBE FACTORY project is to promote and spread the use of renewable energy sources in order to produce electricity and heat in renovated or newly built industrial or commercial buildings.

Throughout the project, some cases have been collected and described (exemplary cases and reference cases). They are renewable energy plants already implemented in different industrial and commercial fields that could be an example to other businesses wishing to adopt these technologies. Among these, it’s important to highlight a GBE FACTORY DEMO proposal of an industrial building that uses, as much as possible, renewable resources to produce energy and it is a replicable model all over Europe.

In Italy, the project partner ForGreen Figure 3 - Rossi DUE S.n.c. Headquarters S.p.A. capitalizes the experiences of the project and proceed to identify a case which aims to become a significant GBE FACTORY DEMO in the Region of Veneto.

The identified industrial site is that of Fertitalia S.r.l., a company operating in the field of composting of the municipal and industrial waste organic fraction. The company has integrated the composting process with a plant to produce energy from organic waste and uses the roofs of buildings to produce electricity from the sun.

The objective is to integrate, with a project proposal, the use of renewable energy created by the company through the recovery of heat from cogeneration process.

In this way Fertitalia S.r.l. becomes a GBE FACTORY DEMO since it provides: • the generation of both electricity and heat through renewable sources • the exploitation of diversified sources to produce renewable energy • the use, within the company, of the produced renewable energy (this project was proposed directly by ForGreen S.p.A.) • increase in the production of renewable energy compared to how much the company needs, in order to run the entire production platform (or company ZERO CARBON or even CARBON POSITIVE) • 14 •

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This GBE Factory DEMO is reproducible throughout Europe, wherever urban waste collections are planned. It allows exploitation of the potential energy of the waste organic fraction, through the extraction of BIOGAS before turning them into compost.

The proposals described can be applied for both newly established composting companies or by modifying the processes of companies already operating.

DETAILED DESCRIPTION OF PLANT FORESEEN: BUILDINGS, HOSTED PROCESSES AND ENERGY REQUIREMENTS

Figure 4 - Exact location of Fertitalia Srl in Veneto

Fertitalia Srl, headquartered in Italy, Villa Bartolomea of Verona, was founded in 1994. It boasts a long experience and a consistent “know how” about the disposal of organic waste. This knowledge has led to the realization of a composting process that guarantees an high level of reliability and does not require any interruption of operations, even for maintenance. This guarantee of continuity is essential to ensure the municipalities which collect waste and the citizens, with an high level of order and public health.

Fertitalia S.r.l has the features to be a GBE Factory DEMO because : • Fertitalia model is replicable in the European territory wherever there is a urban waste collection comparable to a renewable source • it allows to take advantage of the potential energy from the organic waste fraction even before turning it into compost, through the extraction of BIOGAS and the resulting cogeneration of electricity and heat • It allows to exploit the large surfaces of buildings to produce electricity or hot water from the sun • It produces more renewable energy compared to how much the com-

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pany needs, in order to run the entire production platform (company CARBON POSITIVE ENERGY) then the company is not only able to meet its energy needs but it can also produce clean energy to the surrounding community.

The main company activity is the urban organic waste disposal (biowaste) and industrial food waste by the fermentation and the composting of the material. The industrial site Fertitalia S.r.l. covers an area of about 30,000 m2 and it is approximately 150,000 tons of material per year, of which about 120,000 tons come from the collection of municipal organic waste (biowaste or wet fraction) in Veneto, Trentino Alto Adige and Lombardy from food production scraps. The remaining 30,000 tons come from the collection of cuttings and prunings. The disposal process does not require plant to be shutdownded or storage of the waste collected that begins the process of transformation within 24 hours after collection from users. This technology therefore guarantees the continued delivery of waste of Fertitalia S.r.l. without postponements, or emergency destinations. This has been strongly supported by the early investors involving an increased initial capital, but willing to stand out for its reliability, keeping the plant available 24 hours a day, 365 days a year.

The innovation lies in the use of the organic waste to produce biogas and soil improvers. The problem, associated to this process, lies in the high variability of the incoming waste properties. Just think how fruits and vegetables consumption varies considerably over the seasons, and moreover, there could be a variation due to occasional loads from canteens or fruit and vegetable markets.

Figure 5 - Photovoltaic and Biogas Plants

The company’s energy needs are mainly electric, with an annual consumption of 4,500 MWh necessary to the treatment of air (suction and blowing) and changes in the organic mass.

The heat demand is mainly related to the need to heat the air blown in heaps of organic material during the process of aerobic composting and in small part to the heating of offices. The hot air is now produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year.

Then there is a heat demand of about 6,500 MWh linked to the production of biogas to maintain digesters at the right temperature. This requirement is met by using part of the heat recovered from the cogeneration engines.

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The company produces clean energy through a 1 MWp photovoltaic plant, built on the shed roof in 2012. The energy produced by the photovoltaic system is used in large part to the company electricity needs while the available rare temporary energy surplus is introduced into the national grid.

Figure 6 - Traditional composting process

Fertitalia S.r.l. has also created a biogas cogeneration plant of 2 MWe. About 50% of the conferred organic waste follows a traditional process of aerobic composting while the remaining 50%, before the step of composting and maturation, undergoes a phase of anaerobic digestion necessary to extract biogas. The biogas generated is used in two internal cogeneration combustion engines of 1 MWe each, made in 2010 and 2012.

Anaerobic digestion is a collection of processes by which microorganisms break down biodegradable material in the absence of oxygen. In this process there is a recovery of the organic substance energy content otherwise lost as CO2 in the classical processes of aerobic stabilization. Once extracted, the matter (or DIGESTATE) is separated from the residual water content, by a mechanical centrifugation following the traditional process of composting mixed with the original organic waste.

Figure 7 - Process with anaerobic digestion

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Concerning affordability, related to the Italian incentive legislation, the electricity produced by the two engines is fed into the national electricity grid and sold to the Manager of Energy Services. The heat produced by a co-generator is currently used in winter to maintain the right temperature in the digesters.

Figure 8 - Electric energy balance

The heat produced by the second cogeneration plant is part of the project: Fertitalia S.r.l. is considering the opportunity to realize a recovery system to heat the air blown into the aerobic stabilization process and to heat the air in the compost storage sheds avoiding the use of the a diesel boiler.

The GBE FACTORY DEMO is inspired to the “ONE to ONE PLUS” model (GBE Factory Guide) with renewable energy production dedicated to business use and the surplus ceded to the grid. The amount of energy produced from biogas and roof photovoltaic solar are greater than the consumption and make the company Fertitalia S.r.l. “RENEWABLE POSITIVE ENERGY”.

There is the possibility to transfer the heat recovered from the CHP through a small heating network district that connects the company to the nearby units. In this way the DEMO GBE FACTORY model could become “one to many”.

Figure 9 - Thermal energy balance

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FORESEEN GOALS IN TERM OF RES AND ENERGY SAVING WITH THE “DEMO GBEFACTORY “ AND ADVANCEMENT BEYOND THE STATE OF THE ART The project aims to be an example for other organic waste disposal platforms, showing how it is possible to make more profitable the composting process, enhancing waste.

The separate organic collection system allows to reduce the emissions of greenhouse gases (such as methane) and the formation of leachate in landfills. Leachate is also rich in microorganisms and pathogens that can pollute groundwater. The project’s goal is to make sure that other organic waste platforms in Europe adopt the proposed solutions becoming “RENEWABLE POSITIVE ENERGY” companies. In fact, the extraction process of biogas before the composting step does not alter in qualitative and quantitative terms the production of the final compost.

The large covered surfaces, necessary to storage raw materials and the already worked compost, are suitable to be used to produce energy via photovoltaic solar panels or to generate hot water.

The particularities of this GBE FACTORY DEMO are: • Reduction of the network energy consumption by installing a photovoltaic plant 1 MW; • Reuse of civil, agricultural and food industry biomass waste to produce completely natural soil improvers and fertilizers that do not cause desertification contrary to the chemical ones; • Extraction of energy value from the biomass with biogas generation and energy cogeneration plants through a 2 MWe • Livelihood of a green supply chain, involving the on-site withdrawal of fertilizers, saving packaging.

• Re-use of the heat produced, with assessment of the possible destinations and savings resulting.

The result of the GBE Factory DEMO is an annual production of approximately 34,000 MWh from renewable sources, of which 1,000 electrical MWhe coming from the photovoltaic, 15,000 electrical MWhe and 18,000 thermal MWht coming from the two cogeneration engines, The goal of the present Project Proposal, is to define the new technical system of heat recovery and support the implementation with a feasibility study to assess profitability and identify the best possible destination of the heat produced by the combustion of biogas.

The solution which, at the moment, seems to be the best is the recycling of heat in the composting process to preheat the incoming air to the platforms of air insufflation for the controlled oxidation. Another solution may be the creation of a small heating network district for a group of houses close to the industrial site.

BENEFITS FOR THE INVESTOR FROM THE GBE FACTORY AND POSITIVE ENVIRONMENTAL IMPACTS • 19 •

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The advantage of the GBE FACTORY DEMO project is the integration of the traditional composting company activities, with the production and sale of electricity and heat from renewable sources. In this way, the company, in addition to the earnings of composts production, is able to achieve savings from the internal consumption of energy gaining also from the sale of excess energy. The photovoltaic system on the roof, built in 2012 with a cost of about 1.4 million euro, with the incentive benefit, has led to a return on investment in 7 years and an IRR of 16%.

The investment to date is affected by the photovoltaic incentive policies present in each European country. The falling price of equipment installation and the availability of large surfaces on the roof provide a positive return on investment. The use of biogas resulting from the manufacturing process has involved an investment of approximately € 6 million with a payback of 3.5 years since the plant has been able to benefit from the incentives and an IRR of 26%.

With regard to the environmental aspects, it can be said that the plant 1 MWp photovoltaic system on the roof, due to a power production of about 1,000 MWh per year, allows an annual saving of 500 tonnes of CO2. The 2 MW biogas plant produces about 15,000 MWh electricity per year, allowing an annual saving of 7,500 tonnes of CO2. The emissions of the cogeneration engine would in any case release into the atmosphere from the organic fraction of the waste through the volatilization of carbon in the air.

Project Proposal: Fertitalia s.r.l want to evaluate the possible use of the thermal energy produced by one of the biogas co-generators. The thermal energy made available by the two endothermic engines is approximately 18,000 MWh per year. Part of this thermal energy, about 6,500 MWh, is self-consumed to keep the digesters at the correct temperature for anaerobic digestion. The available net thermal energy is therefore approximately 11,500 MWh per year. The heat demand is related predominantly to the need to heat the air blown in the heaps of organic material during the process of aerobic composting and in small part to the heating of offices. The warm air now is produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year. The annual cost to supply diesel is about 57,000 € / year. The feasibility study examines the re-use of heat generated from biogas engines to replace diesel. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the two available endothermic engines fueled by biogas. In this way also the costs for the supply of diesel fuel should be reduced to zero with a saving of 57,000 € / year.

Concerning the environmental aspects, it can be said that the intervention of the heat recovery reduces the use of diesel to a minimum and allows an annual saving of 110 tons of CO2.

EXHAUSTIVE DESCRIPTION OF PROPOSED SOLUTIONS AND DESIGN ALTERNATIVES EXAMINED • Generation of BIOGAS used for the cogeneration of electricity and heat

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The processing cycle begins with the collection phase once obtained the documentation accompanying the load composed of: chemical analysis in course of validity, existing contracts, authorization to transport, completeness and correctness of the waste identification form, compliance with the European waste Code catalog set out in the authorization.

The waste thus collected and weighed, is recorded during the preparation of the mounds ensuring the traceability of the finished product in the market. Approximately 50% of the material is triturated and sent to the digesters, diluted with water. Inside the digesters the material remains for about 30 days to allow the anaerobic digestion process and the extraction of biogas. Each year it produces about 6.5 million Nm3 of biogas with methane content of 60%. The biogas produced from the anaerobic digestion, filtered and desulfurized, is sent to two endothermic engines of 1 MW power each, working at full speed for about 90% of the time available.

The residual material (or digestate) is separated from the water content, by mechanical centrifugation, and follows the traditional process of composting mixed with the original organic waste . The composting process involves the material unloading in the areas of receipt (closed and vacuum in order to prevent bad odors), mixing and treated depending on the type of waste according to the relevant regulations (DGRV 568/05).

The material is fermented in heaps on the platforms, through which air is injected to ensure the requirement of oxygen to microorganisms. This process occurs without the addition of fermentation incentive, but maintaining the optimum conditions of process and takeing place in warehouses kept in vacuum to avoid odors outside. This “heaps” phase lasts about 15 days, during which the piles remain at a temperature of 55-60 °C to sanitize the mass and they are turned several times in order to standardize ventilation and humidity of the biomass. After about two weeks of bio-controlled oxidation, the organic fraction has achieved a good degree of stabilization and it is transferred to the maturation zone, where over the ensuing 45 days, the agronomic properties are refined even in conditions of depression. In the end the material is sieved to make it marketable and to deliver it directly to local farmers who collect it.

All the gas coming from the suction system, are conveyed and subjected first to a scrub with water and subsequently sent to a biofilter. Despite the administration of a biofilter it is very complicated and also subject to strong variability, unpleasant odors are not noticed in the company surrounding area, to confirm the goodness of the system management of purifying gas streams..

• Generation of electricity from photovoltaic system The photovoltaic system is located on the roof and supports the company’s electrical demands. The electrical rating is 998.64 kW, covers an area of about 7000 m2, has 4,161 polycrystalline silicon modules of 240 Wp nominal power unit and 33 inverter to an average annual production of 1,000 MWh. This plant was built in order to reduce the electricity costs supported by the company: to date this system covers 20% of the total company electric consumption. The production of solar electricity can’t be programmed and it is exclusively focused during the day, so it is always necessary to provide the connection • 21 •

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with the national power grid to meet the exceeding energy needs and to be able to enter any temporarily production excess • Use of heat from cogeneration endothermic engines (PROJECT PROPOSAL) The ultimate goal of this project is the re-use of heat produced in large quantities from cogeneration engines that now is not used. In particular, the idea, considered realizable, concerns the replacement of the oil burners that today heat the air blown in the heaps pushed, during the oxidation phase, in order to limit the moisture in the shed.

The thermal energy made available by the two endothermic engines is approximately 18,000 MWh per year. Part of this thermal energy, about 6,500 MWh, is self-consumed to keep the digesters at the correct temperature for anaerobic digestion.

The thermal energy available is therefore approximately 11,500 MWh per year. The heat demand is related predominantly to the need to heat the air blown in the heaps of organic material during the process of aerobic composting and in small part to the heating of offices. The warm air is now produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year.

The annual cost to supply diesel is about 57,000 € / year. The feasibility study examines the re-use of heat generated from biogas engines to replace diesel. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the two available endothermic engines fueled by biogas. In this way also the costs for the diesel fuel supply should be reduced to zero with a saving of 57,000 € / year. Concerning environmental aspects, it can be said that the intervention of heat recovery reduces to a minimum the use of diesel and allows an annual saving of 110 tons of CO2.

The investment to achieve the project includes the installation of heat exchanger to recover the heat generated by engines and in particular from the circuit of lubrication oil, and the water cooling circuit and also from the exhaust fumes. We must also evaluate the pipeline costs to transport the carrier fluid from the engines up to the blowing platforms.

The estimated cost is about € 120,000 and the maintenance cost of the exchangers is estimated at 7,000 euro / year. The pay back of the operation would be 2.5 years.

WORK PLAN WITH A GANTT REPRESENTATION AND A W.B.S. The work plan includes: a) Feasibility Study: detailed analysis of the thermal needs in terms of load curves, required temperatures and type of heat distribution. It is also necessary to analyze the thermal loads made available by combustion engines in the heat recovery from the flue gases and from the cooling circuit of engines. b) Project proposal: technical proposal to the recovery of heat from the flue gases and the cooling circuit of engines, to convey heat to sheds and offices and also to distribu• 22 •

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te the heat itself. The technical solution must be supported by an economic expenditure forecast. c) Supplier search and completion of the authorizations: once validated the technical solution, it begins the process to obtain the authorizations to build heat recovery. In this stage, there is the research of the best suppliers and the research of funding from banks and territorial development organizations. d) Implementation of the works: the last phase involves the construction of facilities, the test and the commissioning.

Figure 10 - Areal view of the plant

Figure 11 - Implementation of the works

• 23 •

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INVESTMENT ANALYSIS AND FINANCIAL PLAN Generation of BIOGAS used for the cogeneration of electricity and heat Project Cost Estimate:

Item

Amount in EUR

Total project cost Revenue/Savings after Operation:

BIOGAS Electricity Grant O&M Cost

Forecast Financial 10 years

IRR (Internal Rate of Return)

Simple Pay-Back Period

without inflaction rate

6.000.000 2.100.000 - 350.000 26% 3,5 yr.

Generation of electricity by photovoltaic system Project Cost Estimate:

Item

Amount in EUR

Total project cost Revenue/Savings after Operation:

Electricity Saving PV Electricity grant O&M Cost

Forecast Financial 20 years

IRR (Internal Rate of Return)

Simple Pay-Back Period

without inflaction rate

1.400.000 150.000 202.000 - 25.000 23% 4,5 yr.

Use pf heat from cogeneration endothermic engines (PROJECT PRPOSAL) Project Cost Estimate:

Item

Amount in EUR

Total project cost Revenue/Savings after Operation:

Oil Saving O&M Cost

Forecast Financial 10 years

IRR (Internal Rate of Return)

Simple Pay-Back Period

without inflaction rate

120.000 57.000 - 7.000

• 24 •

40% 2,5 yr.

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GBE Factory DEMO COLLECTION

2. Cantina Sociale di Castelnuovo s.r.l.

BACKGROUND AND RATIONALE FOR THE PROPOSED PROJECT “DEMO GBE FACTORY” The aim of the GBE FACTORY project is to promote and spread the use of renewable energy sources in order to produce electricity and heat in renovated or newly built industrial or commercial buildings.

Throughout the project, some cases have been collected and described (exemplary cases and reference cases). They are renewable energy plants already implemented in different industrial and commercial fields that could be an example to other businesses wishing to adopt these technologies. Among these, it’s important to highlight a GBE FACTORY DEMO proposal of an industrial building that uses, as much as possible, renewable resources to produce energy and it is a replicable model all over Europe.

In Italy, the project partner Figure 12 - A view of Cantina Sociale in Castelnuovo di Garda ForGreen S.p.A. capitalizes the experiences of the project and proceed to identify a case which aims to become a significant GBE FACTORY DEMO in the Region of Veneto.

The identified industrial site is Cantina Sociale di Castelnuovo S.r.l., one of the most important winery consortium of the whole region. The company has been planning since 2010 the recovery of bioenergy from grape pruning and the Presidents are now determined to proceed with an updated economic evaluation for the creation of the process.

The objective is to develop a project for the recovery of the renewable energy available in the wood from pruning to produce heat by combustion or piro-gassification.

In this way Cantina Sociale di Castelnuovo S.r.l.becomes a GBE FACTORY DEMO since it provides: • the production of heat and cold through renewable sources, otherwise non exploited • the increase in the efficiency of the production process • the use, within the company, of the produced renewable energy (this project was proposed directly by ForGreen S.p.A.) • the reduction of the volume of wood wastes that would be otherwise discharged • 25 •

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This GBE Factory DEMO is reproducible throughout Europe, wherever winery consortium exists. It allows to exploit the potential energy of the waste wood, through the combustion or the piro-gasification of the biomass.

The proposals described can be applied for both newly established winery companies or by modifying the processes of wineries already operating.

DETAILED DESCRIPTION OF PLANT FORESEEN: BUILDINGS, HOSTED PROCESSES AND ENERGY REQUIREMENTS Cantina Sociale di Castelnuovo Srl, headquartered in Italy, Castelnuovo del Garda of Verona, was founded in 1958.

It gathers a long and consolidated experience in winery and its strength is based on the strong network of more than 250 associates. This strength points led the Company within the leader wineries of the north Italy and to the certification of the areas of Bardolino, Custoza and Lugana.

Cantina sociale di Castelnuovo s.r.l has the features to be a GBE Factory DEMO Figure 13 - Exact location of Cantina Sociale because : • its model is replicable in the European territory wherever there is a winery or wine factory • it allows the recovery of wood from grape pruning that would be otherwise discharged • it reduces the fuel consumption for heating and cooling processes • the eventual integration of the piro-gasification for wood valorization, would make Cantina Sociale the first user within a winery contest among Italy.

The main company activity is the production of wine: the most important wine produced in this facilities are Lugana, Custoza, Bardolino and Bardolino Superiore.

Nowadays Cantina Sociale counts more than 250 associates with more than 1200 hectars of vineyard surface. Every associate provide its grapes to the central facilities where the production process takes place. Every year the winery transforms more than 16.000 tons of grapes into wine: about 75% of this grapes come from Denomination of Controlled Origin lands which is one of the most important Figure 14 - View of a vineyard of Cantina Sociale Italian certifications for wines.

• 26 •

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The innovation lies in the utilization of the wooden biomass that is produced after grape pruning, and represents a huge energy resource for the consortium.

The company’s energy needs are mainly electric, with an annual consumption of 1,583 MWh necessary to cool down rooms of grapes and wine processing, handling of grapes and wine especially during the fermentation period that is usually in the months of September and October.

The heat demand is mainly related to the need to heat the steam up for sterilization and washing processes and to heat offices. This requirements need two different enthalpic levels for hot water: for sterilization and washing processes low pressure (0.6-0.9 bar) steam is used, while hot sanitary water is used for heating up offices during cold seasons. This heat demand is provided by two diesel fuel burners. The diesel consumption is 26.000 liters annually for the domestic diesel and 37.000 liters for the agricultural diesel for a total thermal energy production of 410 MWh/year. The cooling energy demand is related to temperature control for wine and must during stabilization and storage period and the temperature set point for the ambient temperature is 15° C. The cooling enerFigure 7 - Process with anaerobic digestion gy is required only from May to October and the measured requirement is 1100 MWh/year, which is obtained with two refrigerating units.

The utilization of the residual biomass from grape pruning would allow the saving of 48.200€ and 98.500€ for the fuel expenses of heat and cold production, respectively.

The total savings per year would be 146.700€ for fuel purposes.

The project proposal aims to the production of thermal energy for heat and cold purposes via biomass combustion. The requirements of the winery are 410 MWh/year for heating energy and 1100 MWh/year for refrigerating energy. An assessment on the productivity of the field is now required: we will define wood chips as a fine cut wood at 30% humidity in weight. We will start from a couple of assumption: the first one is that the productivity of wood is 1.2 tons of wood chips/hectare and a calorific value of 3 MWh/ton of wood chips.

With these assumptions, the required vineyard surface is about 450 hectare, while the consortium has 1200 hectares among all its associates. Table 1 represents the comparison between the available energy in the fields and the required thermal energy for make the winery working. This Project proposal aims to consider also the piro-gassification of the biomass. Piro-gassification is particularly indicated for low quality biomass, to produce Hydrogen, Carbon Monoxide and Carbon Dioxide from Organic solids such as coal, tar, char and biomass.

• 27 •

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Figure 16 - Demand vs availability

The process would comprise both the heat and the cold production via an absorption plant. This process has already been developed and has spread all over the industrial facilities that requires both heat and cold. The energy production may be done in two different ways: biomass combustion and piro-gassification of the biomass. Attention will be focused on the combustion, but an economic overview on the piro-gassification will be also provided.

The GBE FACTORY DEMO is inspired by the “ONE to ONE PLUS” model (GBE Factory Guide) with renewable energy production dedicated to business use and the surplus ceded to the grid. The amount of energy that would be produced from biomass would be greater than the consumption and that would make the company Cantina Sociale di Castelnuovo “RENEWABLE POSITIVE ENERGY”. To use all the energy produced from the biomass recovery, a system of district heating may be implemented to provide heat to the close factories.

FORESEEN GOALS IN TERM OF RES AND ENERGY SAVING WITH THE “DEMO GBEFACTORY “ AND ADVANCEMENT BEYOND THE STATE OF THE ART The project aims to be an example for other winery consortium, showing how it is possible to make the process of wood recovery more profitable, enhancing the energy efficiency of the whole process of wine production, and potentially allowing a cost reduction of wine production. Wood recovery from vineyard allows the reduction of diesel fuels, the reduction of the environmental impact and to become a virtuous model for other consortium. The project’s goal is to make sure that other winery consortium in Europe adopt the proposed solutions becoming “RENEWABLE POSITIVE ENERGY” companies. In fact, the wood recovery represents a great example of energy independence that is the core idea around the “Carbon-zero buildings” project development.

The peculiarities of this GBE FACTORY DEMO are: • Reduction of the fuel for thermal energy purposes; • Reuse of agricultural biomass waste volume reduction; • 28 •

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• Extraction of energy value from the biomass with thermal energy production.

• Re-use of the heat produced, with assessment of the possible destinations and savings resulting.

The result of the GBE Factory DEMO would be an annual production of 4000MWh/year that will be divided into heat and cold production.

The goal of the present Project Proposal, is to define the logistics and the organization of the wood recovery from the vineyards and evaluating its productivity in terms of thermal energy. The solution which, at the moment, seems to be the best is the gathering of the wood biomass into square bales, that are easy to be carried and moved into the rows of the vineyards.

Later the wood has to dry during the summer and would be later available for chipping, to make easier its charge into the burner. Another option would be the piro-gassification of the wood to produce syn-gas, which is a highly valuable fuel that would separate problems of solid burning from the combustion phase of the produced gas. Piro-gassification would be just an additional stage to the transformation process of biomass to energy. In the first stage the piro-gassificator heats the biomass up to 300°C at first, to make the pyrolisys process starts: in this phase the biomass is transformed into pyrolisys oil. The temperature is then increased to transform it into syn-gas with high concentration of hydrogen and carbon monoxide.

BENEFITS FOR THE INVESTOR FROM THE GBEFACTORY AND POSITIVE ENVIRONMENTAL IMPACTS The advantages of the GBE FACTORY DEMO project are to integrate the traditional wine company activities, with the production and sale of heat from renewable sources. In this way, the company, in addition to the earnings of the wine production, is able to achieve savings from the internal consumption of energy gaining also from the sale of excess energy.

The actual costs for the thermal energy are 48.200€ for heating offices and the process heat and is obtained with two different generators for the two heat destinations respectively.

The cost for cold production is 98.500€ with two different cold generators. The recovery of all the wood from vineyards would provide a production of 4000 MWh/year of which just 1500 MWh/year are required to accomplish the energetic demand of the winery. This evidence means that more than the half of the available energy can be sold to surrounding facilities and factories. Project Proposal: Cantina sociale di Castelnuovo Srl wants to evaluate the possibility to reuse the wooden biomass lying on the ground of the vineyards to produce its own thermal energy requirement and to sell the excess to surrounding facilities.

• 29 •

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The thermal requirement is mainly for cold production for cooling process rooms and storage rooms and that justifies the idea for an absorption thermal plant.

The cooling demand is 1100 MW/h. Heating energy requirement is 410 MWh/year with a correspondent diesel fuel demand of 63.000 litres/year. The annual cost to supply diesel is about 48.200 € / year.

The feasibility study examines the re-use of heat generated from wooden biomass. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the available wooden biomass. In this way also the costs for the supply of diesel fuel should be reduced to zero with a saving of 48.200 € / year.

Concerning the environmental aspects, it can be said that the intervention of reutilization of the biomass potentially avoids the use of diesel and allows an annual saving of 150 tons of CO2.

EXHAUSTIVE DESCRIPTION OF PROPOSED SOLUTIONS AND DESIGN ALTERNATIVES EXAMINED • Thermal energy production from wooden biomass from grapes (PROJECT PROPOSAL) The ultimate goal of this project is the re-use of the wooden biomass produced in large quantities from vineyards. In particular, the idea, considered realizable and already implemented in other locations, concerns the replacement of the oil burners that today provide the heat-demand of the buildings. The wood would be gathered after the pruning period in march and stored in the shape of bales in various storage places or at the edges of the vineyards. The storage period is meant to reduce the humidity contained in the wood that is between 40% to 45% when the wood is lying on the ground.

This storage and drying period should last until the end of the summer when the humidity contained into the wood decrease down to 20-25%. Wood is now ready for the chipping process, when the integer branches are cut into small pieces (length• 5-10 cm) and make the wood ready for burning into a furnace. The chipping machine is quite expensive (about 125.000€) so a “lend or buy” analysis should be made to understand whether the machine should be bought or just borrowed a few times per year. The storage for bales should be displaced in a few locations, to avoid the immobilization of a huge surface for storing the wooden biomass that still has a very low density.

Then the bales are usually kept at the edge of the vineyard during the summer and part of them are chipped during fall. The furnace must be adapted for this kind of biomass burning because of its irregular size and shape and it must have a removal for ashes and other solid residuals. The furnace is charged continuously through a cochlea, carrying chipped wood from the storage. The so-generated heat will be used for heating and cooling purposes via a cogeneration system made consisting in the furnace and an absorption thermodynamic cycle, to produce cool thermal energy starting from heat.

The thermal energy available with this process will cover all the thermal energy demand • 30 •

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of the buildings that consist of 1510 MWh/year. The diesel fuel saved with the biomass combustion will generate an annual saving of 48.200€/year for heat production from diesel-fuel combustion and 98.500€/year for cold production from biomass. The annual money saved would then be 146.700€/year with a correspondent CO2 emission prevented of 150 tons/year. The estimated pay-back period is between 5 and 6 years.

• Piro-gasification of the biomass One more option, beyond combustion, is the piro-gasification of the wooden biomass.

The process consists on the transformation of the organic biomass into pyrolsys oil and then this oil is gasified to produce a syn-gas enriched in hydrogen and carbon monoxide.

The advantage of this technique besides the combustion is the division of the energy recovery into two processes. The liquefaction is usually a dirty process but that makes the gasification and the combustion of the syn-gas to stay clean. During the combustion of the wooden biomass instead, inefficiency linked to the non-homogeneous heating properties of the biomass and to the different size of the wood must be acknowledged.

WORK PLAN WITH A GANTT REPRESENTATION AND A W.B.S. The work plan includes: a) Feasibility Study: detailed analysis of the thermal needs in terms of load curves, required temperatures and type of heat distribution. It is also necessary to analyze the thermal loads and their variation during the year b) Project proposal: technical proposal to the recovery of energy from the wooden biomass recovered from the vineyards. The technical solution must be supported by an economic expenditure forecast. c) Supplier search and completion of the authorizations: once validated the technical solution, it begins the process to obtain the authorizations to build the process. In this stage, there is the research of the best suppliers and the research of funding from banks and territorial development organizations.

Figure 17 - Arial view of the plant

d) Implementation of the works: the last phase involves the construction of facilities, the test and the commissioning.

• 31 •

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Figure 18 - Timing activity table

INVESTMENT ANALYSIS AND FINANCIAL PLAN The analysis is intended just for the required energetic demand from Cantina Sociale di Castelnuovo.

Cost for biomass recovery and transformation Action

Amount in EUR/ton

Gathering of the biomass

16

Transportation

10

Chipping

14

Total costs

40

Installation costs Item/service

Amount in EUR/ton

500 kW furnace

130.000

280 kWf absorber, wth cooling tower

103.000

Hydraulics and electrics and electric equipment

47.000

Adaptation of the site

20.000

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Storage-location for the chipped wood

20.000

Executivr project

30.000

Total costs

350.000

Evaluation of the investment’s convenience Annual cost (with actual heating system)

Amount in EUR/ton

Chipped wood

22.000

Maintenance

7.000

Electrical energy

4.000

Total costs

33.000

Avoided costs (with bionass recovery system) Electrical energy

72.300

Diesel fuel for industrial heating

26.000

Diesel fuel for industrial heating

8.880

Total annual avoided costs

107.180

The payback period with the investment paid in full-equity from the society would be 5.5 years.

• 33 •

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COAL Consortium, Motta di Livenza, Treviso, Italy The Livenza Agricultural Cooperative Company (COAL) represents an interesting territorial reality of the easternmost part of the province of Treviso, in the Veneto region, 60 km north of Venice. Started up in 1976, the cooperative is headquartered in Motta di Livenza (TV) and it currently counts about 150 members, including farmers and growers.

The agricultural area pertaining to the company amounts to about 3,000 hectares, including 1,000 hectares of vines and the remaining 2,000 of arable land, especially of corn and soy. It aims to provide shareholders and farmers of the Opitergino-Mottense district with assistance in agricultural practices and in harvesting agricultural crops. The various activities include grain drying and storage, marketing of technical materials (seeds, fertilizers, agro-chemicals, etc…) and of local farm products. In the last decade the COAL Cooperative has started to address the use of wood-energy, sensing in this field a strong potential as a source of income for farms.

In addition to promoting the diffusion and the installation of Short Rotation Woodland (SRW) plantations, specialized in biomass energy production (use of various fast-growing species, including black locust, foxglove, and hybrid poplar), the cooperative is working on the themes of collection and use of different kinds of supplies for energy purposes. In this context, the activity of COAL is the result of many experiments regarding all stages of collection and transformation of sprouts (packing, chipping).

Besides having about 1,000 hectares of vineyards owned by its members, the cooperative have some other local vineyards in which they carry out the fruit picking, equivalent to other 4,000 hectares. It can therefore be estimated that a total of about 5,000 hectares of land can be organized and optimized for the annual collection of sprouts and for the setting of both the logistics of intermediate processing and storage locations, and for placing energy conversion facilities.

In order to try to internalize the added value, the cooperative is structuring a new business by way of the heating supply company “AGRIVITENERGY (A.V.E) Ltd”, through the installation of high efficiency modern boilers, powered by vine chips (Biocompact form).

The A.V.E. is a company with widespread participation whose shareholders are COAL members, enterprises, professionals, citizens, and also associations and organizations for public benefit. Some COAL members are currently using the Biocompact form and other members are planning to install it in the near future. In this perspective, the company aims to provide its users with not only the biomass (vine chips) but with everything the user needs for benefiting directly from the heat.

The users do not have to worry about finding fuel, installing the boiler or maintaining it, because everything is managed by A.V.E. The company, indeed, deploys to customers the BIOCOMPAT modules for the generation of thermal energy, provides for their continued operation by refuelling of biomass in form of vine chips (as an alternative to briquette), and keeps their maintenance over time.

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To achieve this goal, the new company A.V.E is setting up a new site with a large yard and a building designed with GBE FACTORY criteria for logistics and manufacturing of biomass (vine sprouts) and for the management of BIOCOMPACT modules.

In the situation described above, the interesting and replicable A.V.E model of DEMO GBE FACTORY is clearly identifiable: an example of a “ONE TO MANY” model, or rather, “ONE TO MANY DIFFUSED” model, consisting of the GBE FACTORY HEAD OFFICE (or mother company) connected to many MINI GBE FACTORIES throughout the area. For the moment, these MINI GBE FACTORIES mainly consist of the agricultural processing branches of the associates, who benefit from the heating service through the BIOCOMPACT’s new boilers for heat and cold production, which A.V.E deploys. (See figure below).

CLOSED- LOOP BIOMASS SYSTEM BASED ON A.V.E. ENERGY SYSTEM (also called CIRCULAR – ZERO KM CYCLE OF BIO ENERGY SUPPLY)

Figure 19 - Closed-Loop Biomass based A.V.E. Energy Supply System

The basic version of GBE FACTORY MOTHER COMPANY has significant potential for future developments related to the processing and the storage of biomass: they have been planning the building duplication, the diversification of raw material entering the shredding plant, and of the typology of combustion outputs (loose wood chips, briquettes, pellets - see figure below).

• 35 •

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CLOSED-LOOP BIOMASS A.V.E. SYSTEM BASED ON IMPROVED CLOSED FEATURES (also called CIRCULAR – XERO KM CYCLE OF BIO ENERGY SUPPLY

Figure 20 - Enhanced closed-loop Biomas A.v.e. Energy Supply System

Diversifications are provided INSIDE also forBIOCOMP BIOCOMPACT stations, both in terms of new applicable BIOCOMPACT HEADQUARTERS CARBON CONSORTIUM technologies and service forms that include the selling of electricity and thermal energy. As shown in the figure below, a BIOCOMPACT module was also installed at the office building and at some warehouse of the COAL Consortium headquarters, which, thanks to the additional contribution of the photovoltaic system installed on the roof of the shed, has become a site with a nearly Zero-Carbon Buildings (nZCB) which has been awarded with the GBE FACTORY brand.

BIOCOMPACT HEADQUARTERS INSIDE BIOCOMP CARBON CONSORTIUM

Figure 21 - Bio compact details

Figure 21: Bio compact details

Figure 22 - Bio compact at COAL consortium premises

Figure 22: Bio compact at COAL consortium premises • 36 •

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DETAILED DESCRIPTION OF THE GBE FACTORY: BUILDINGS, ENERGY PROCESSES AND REQUIREMENTS GBE FACTORY MOTHER COMPANY The “GBE FACTORY MOTHER COMPANY” for the centralized processing of wood chips is composed by the property of the company “AGRIVITENERGY (AVE) Ltd”, which is currently housed in a building adjacent to the headquarters of the COAL Consortium in Motta di Livenza, in the Veneto Region - Italy

Figure 24 - View of the cooperative

Figure 23 - Google map view of Motta di Livenza

The warehouse occupies an area of 1,350 square meters within an area of about 10,000 square meters intended for the processing and storage of the biomass; here, soon we expect that the warehouse area will be doubled.

Figure 25 - View of the warehouse

Figure 26 - Inside the warehouse

In the warehouse there are: a grinder model 1300 BGS Leopard (2 ton/h, 100 kW) manufactured by Stragliotto ECO & RL Rossano Veneto, Vicenza, Italy with a capacity of more than 2 tons/hour, a space for the storage of wood chips from pruning and an area for drying wood chips from other sources than the vine (other residues from processes pruning cuts and agro-forestry), which, in short with the increase in production, integrate and diversify the production of wood chips from pruning. Currently the drying of wood • 37 •

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chips from vine sprouts does not require drying in the shed, as it occurs naturally in the temporary storage located in the countryside.

The operation of the ‘dryer will occur with’ energy produced with the use of the same biomass treated on the spot. The GBE FACTORY MOTHER COMPANY in its future configuration scheme aims to become a CARBON NEUTRAL FACTORY.

Figure 27 - The grinder

Figure 28 - The grinder inside the warehouse

CYCLE OF SUPPLIES The supply of THE GBE FACTORY occurs through the supply chain and is characterized by the following steps: Collection from the vineyard Between the end of winter 2008 and early spring 2009, the Cooperative COAL, in some allotments owned by some of its associates, performed a series of tests to collect prunings arising from pruning vines.

Figure 29 - The vineyard

Productivity was highly variable, depending on the preparation of the material to be collected. In many cases, the observed data are quite different, ranging from 1 bale/hour to almost 7 bales/hour.

On the basis of this remarkable heterogeneity the opportunity emerged to prepare a protocol for growers that provides for alternate rows and concentrating branches in the • 38 •

Productivity was highly variable, depending on the preparation of the material to be Productivity was was highly highly variable, variable, depending depending on on the the preparation preparation of of the the material to be Productivity collected.

In many thevariable, observeddepending data are quite different, ranging 1 bale/hour to Productivity wascases, highly on the preparation of from the material to be collected.InInmany manycases, cases,the theobserved observed data data are are quite quite different, different, ranging ranging from from 1 bale/hour collected. to almost 7 bales/hour. collected.

In many cases, the observed data are quite different, ranging from 1 bale/hour to almost77bales/hour. bales/hour. almost almost 7 On the basisbales/hour. of this remarkable heterogeneity the opportunity emerged to prepare a protocol Onthe thebasis basisofofthis thisremarkable remarkableheterogeneity heterogeneitythe the opportunity opportunity emerged emerged to to prepare a protocol On for GBE growers that provides for alternate rows and concentrating branches inprepare the center of the On the basis of this remarkable heterogeneity the opportunity emerged to a protocol Factory GBE Factory COLLECTION forgrowers growers thatprovides providesfor foralternate alternaterows rows and and concentrating concentrating branches branches for that inDEMO the center of the rows, to compact betterfor thealternate bale depending on the type of the vineyard and ofof the for so growers that provides rows and concentrating branches in the center the rows, so so toto compact compact better better the the bale bale depending depending on on the the type type of of the the vineyard vineyard and of the rows, rows, so bale depending on the5-6 type ofthe the vineyard of are the center of the rows, so better toso compact better the bale 2.5 depending on type of the vineyard conditions ofto thecompact material, tothe collect from about to bales / hectare.

Theand bales conditionsofofthe thematerial, material,so soto tocollect collect from from about about 2.5 2.5 to to 5-6 5-6 bales bales // hectare. hectare. The bales are conditions of the of conditions the sofrom to collect from 2.5 to 5-6 bales / hectare. conditions the material, somaterial, to collect about 2.5the toabout 5-6 bales / hectare.

The bales are leftand on harvested field in aofposition that will not disturb other operations in the vineyard. left on harvested field in a position that will not disturb the other operations in the vineyard. left on harvested field in a position that will not disturb the other operations The bales left field onofharvested field in a will position that will disturb the other operations left on harvested in anewly position that notitdisturb thenot other operations the vineyard.

Regarding theare weight the formed bales, amounts to an average of in values ranging Regarding theweight weight ofthe thethe newly formed bales, it amounts amountsbales, to an anitaverage average oftovalues ranging Regarding the of newly formed bales, it to in the vineyard.

Regarding weight of the newly formed amounts an average Regarding the weight of the newly formed bales, it amounts to an average ofabout values50-55%. ranging between 0.5 to 0.65 tons / bale, with a water content in the material equal to between 0.5 0.65between tons//bale, bale, with water content in theamaterial material equal to about 50-55%. between 0.5 toto aaawater equal of values ranging 0.5with to 0.65 tonscontent / bale, in with water content the material between 0.5 to0.65 0.65tons tons / bale, with water content in the the material equal toinabout 50-55%. equal to about 50-55%.

Figure 30 bales - Hay bales Figure 30:30: Hay Figure Hay bales Figure Hay bales Figure 30:30: Hay bales

Figure 31: Bales thevine yard Figure 31: Bales inin Figure 31: Bales inthe thevine vineyard yard Figure31: 31: Bales in yard Figure Bales in the vine

Transport and stacking of the semi finished products

Transport and stacking ofof the semi finished products Transport and stacking of the semi finished products Transport and stacking of the semi finished Transport and the finished products The bales arestacking transported tosemi temporary collection areas, which consider the location of the position of GBE FACTORY MOTHER COMPANY and the dislocation of the different MINI-GBE FACTORIES, and where the BIOCOMPACT heat modules are located.

The bales are transported toto temporary collection The bales are transported temporary collectionareas, whichconsider considerthe thelocation locationof ofthe the The bales are transported to temporary areas,which which consider the location of The bales are transported temporary collection areas, which consider the location of The bales are stacked into pyramid construction for natural drying, which lasts about 9the position of of GBE FACTORY MOTHER COMPANY position GBE FACTORY MOTHER COMPANYand andthe dislocationofof ofthe thedifferent differentMINI-GBE MINI-GBE position ofGBE GBE FACTORY MOTHER theadislocation dislocation of the different MINI-GBE position FACTORY COMPANY and the dislocation the different months,ofthe period withinMOTHER which the biomass reaches relative moisture content of MINI-GBE 10-12%.

FACTORIES, and where the BIOCOMPACT heatmodules modulesare located.

FACTORIES, and where the BIOCOMPACT heat FACTORIES, and where the BIOCOMPACT arelocated. located.

FACTORIES, and where the BIOCOMPACT heat modules are located.

The bales are stacked pyramid construction fornatural naturaldrying, drying,which whichlasts lastsabout about9999months, months, The bales are stacked inpyramid pyramid construction which lasts about months, The bales are stacked ininin pyramid construction for The bales are stacked construction for natural drying, which lasts about months, the period within which the biomass reachesaaarelative relativemoisture moisturecontent contentofof of10-12%.

10-12%. the period within which the biomass content 10-12%. the period within which the biomass reaches the period within which the biomass reaches relative moisture content of 10-12%.

Figure32: A pyramid of bales Figure pyramid ofbales bales Figure 32:32AA-pyramid of Figure 32: Figure 32:A Apyramid pyramidofofbales bales

Figure 33 - Wood-chipper

Figure 33: Figure 33: Wood-chipper Wood-chipper Figure Figure33: 33:Wood-chipper Wood-chipper

• 39 •

GBE FACTORIES GBE Factory

GBE Factory DEMO COLLECTION

MINI- GBE FACTORIES I GBE FACTORIES today are represented mainly by farms, COAL consortium , which produce and process wine. These The MINI GBE FACTORIES today are rees are provided with a heat contract, which presented mainly by farms, COAL confor the supply of renewable heat energy sortium members, which produce(kWh) and etermined price according to the withdrawal of process wine. These companies are provided withestablished a heat contract, which prond other conditions for this purpose vides for the supply of renewable heat a shareholder or non-shareholder AVE). The energy (kWh) in a predetermined price supplied through BIOCOMPACT accordingthe to the withdrawal of(average pruning 0 – 100 KWth are fed and and heat other boilers), conditionswhich established for this purpose (such as a shareholder or noned directly by " AGRIVITENERGY (AVE) Ltd".

The shareholder AVE). The power is supplied are temporally flexible, since the heat through the BIOCOMPACT (average size on is doneofwith mobile and thus easily 80 – 100 KWthunits heat boilers), which are to differentfed locations. and maintained directly by “ AGRIVIFigure 34 - Bio compact details TENERGY (AVE) Ltd”. The contracts are Figure 34: Bio compact details temporally flexible, since the heat distribution is done with mobile units and thus easily allocated to different locations.

The technical data of the BIOCOMPACT heat module type are those shown in the table

nical data below. of the BIOCOMPACT heat module type are those shown in the table

hnical Data

rmal power

formance

n.

Technical Data

1

Thermal water

2

Performance

3

Hot water heater

4

Hot water temperature

water heater

u.m.

u.m.

KWth % Liters

Quantity KWth

85

%

90-92

Liters

200

°C

85

Quantity 85

90-92 200

Table 1 - Specifications station BIOCOMPACT (size 80-100 kWth)

water temperature

°C

85

The thermal energy is used in winter for heating and to maintain the temperature of the pecifications station BIOCOMPACT (size (around 80-100 kWth) fermentation of red wine 17 ° C) .

Some farms, members of A.V.E., represent the evolved MINI GBEFACTORY as they use the BIOCOMPACT module not only for winter heating, but also for the production of chilled for the vinification also forthe the offices cooling, thanks mal energy water is used in winter forprocesses heating and andpossibly to maintain temperature of theto the use of(around absorbers. tion of red wine 17 ° C) .

The Cescon farm of Giuseppe and Antonella Cescon is a sole proprietorship based in Chiarano (TV), which uses a BIOCOMPACT boiler (type Froling)as 75 they kWthuse withthe the chams, members of A.V.E., represent the evolved MINI GBEFACTORY racteristics described in the table above producing hot water at 85° C in the winter PACT module not only for winter heating, but also for the production of chilled waterperiod and for supplying an absorber of 75 kWth (Yazaki type) in the summer (June to October) nification processes and possibly also for the offices cooling, thanks to the use of in order to produce the cooling necessary to keep the white wine in tanks at a temperas. ture of 5 - 6 ° C.

on farm of Giuseppe and Antonella Cescon is a sole proprietorship based in Chiarano • 40 • ch uses a BIOCOMPACT boiler (type Froling) 75 kWth with the characteristics in the table above producing hot water at 85° C in the winter period and for

GBE Factory

GBE Factory but DEMOmaintains COLLECTIONa The Cescon MINI GBE FACTORY has no connection to the gas network, connection to the electricity grid for 15 kWe to meet the needs of lighting and for peaks of The Cescon MINI GBE FACTORY has no connection to the gas network, but maintains a summer cooling energy requirements.

connection to the electricity grid for 15 kWe to meet the needs of lighting and for peaks of summer cooling energy requirements.

Figure 35 - Farm Cescon

Figure 35: Farm Cescon

Figure 36 - Farm Cescon

Figure 36: Farm Cescon

The Cescon company with over 40 hectares of vineyard produces approximately 6,000 hectoliters of wine per year and provides for their own use of heat and cooling for more than Cescon 95% with renewable vine its own vineyards (about The company with energy, over 40through hectares of sprouts vineyardfrom produces approximately 6,000 500 quintals of wood chips per year).

The Cescon company represents a 100% renewable hectoliters of wine per year and provides for their own use of heat and cooling for more than energy GBE FACTORY. 95% with renewable energy, through vine sprouts from its own vineyards (about 500 quintals

of wood chips per year). The Cescon company represents a 100% renewable energy GBE The Cescon company is already looking at the realization of a farm (wine - milk) with an FACTORY. innovative high-level of automation, fully sustainable from the point of view of energy and

The Cesconflow company already looking at the of of a farm (wine - (wine milk) with an a circular of zeroiswaste, where waste andrealization by-products the process - milk) innovative high-level of automation, fully sustainable the to point view of andasa are converted into energy (electricity and heat) thatfrom returns theof source in energy compost circular of zero waste, wherethis waste and by-products of boiler the process (winevine - milk) are fertilizerflow for vineyards.

To achieve objective, the existing chips from is proconverted intoaddition energy (electricity and heat) thatfor returns to the source compost as fertilizer vided for the of a bio- digester fluids 100 kWe fueled by in the barn, mowing the for vineyards.

To achieve objective, the existing boiler chips fromheat vine(about is provided for the vineyard and the winery this by -products, which will provide at least 100KWth), which will mainly used fluids for cooling the milkfueled produced bybarn, the barn. addition ofbe a biodigester for 100 kWe by the mowing the vineyard and the winery by -products, which will provide at least heat (about 100KWth), which will be mainly used for cooling the milk produced by the barn.

• 41 •

GBE Factory

GBE Factory DEMO COLLECTION

GOALS IN TERMS OF RENEWABLE ENERGY AND ENERGY SAVING: THE “ A.V.E. DEMO “ ENERGY BEYOND THEENERGY INITIALSAVING: GBE FACGOALS GOALS IN IN TERMS TERMSGBEFACTORY OF OF RENEWABLE RENEWABLE ENERGY AND AND ENERGY SAVING: "" A.V.E. A.V.E. DEMO DEMO GBEFACTORY GBEFACTORY "" BEYOND BEYOND THE THE INITIAL INITIAL GBE GBE THE THEMOTHER TORY COMPANY FACTORY FACTORY MOTHER MOTHER COMPANY COMPANY

The GBE FACTORY MOTHER company is functional to the entire energy chain implemented by the A.V.E. company and to the existence of the MINI GBEFACTORIES. In its final The TheGBE GBEFACTORY FACTORY MOTHER MOTHER company company functional functional to the entire entireenergy energy chain chainimplemented implemented by by configuration with the doubling of theisisarea thereto isthe a potential for more than 5,000 tons the A.V.E. A.V.E. company company and and to tothe the existence existence ofbriquettes. the theMINI MINIGBEFACTORIES. GBEFACTORIES. In Inits itsfinal final configuration perthe year among wood chips, pellets andof For the production ofconfiguration pellets, some with with the the doubling doubling of of the the area area there thereinto isis aaconsideration, potential potential for for more more than than 5,000 5,000 tons tonsdone per per year year among feasibility studies have been taken including a study by among AIEL.

wood woodchips, chips,pellets pelletsand andbriquettes. briquettes.For Forthe theproduction productionof ofpellets, pellets,some somefeasibility feasibilitystudies studieshave have been been taken takeninto intoconsideration, consideration,including includingaastudy studydone doneby byAIEL. AIEL.

Figure 37 - Pellets production

Figure Figure37: 37:Pellets Pelletsproduction production

Figure 38 - Pellets

Figure Figure38: 38:Pellets Pellets

Figure 39 - Pellets

Figure Figure39: 39:Pellets Pellets

Figure 40 - Woodchips

Figure Figure40: 40:Woodchips Woodchips

The study by AIEL says that a plant for the production of pellets from vine sprouts in a quantity superior to 10,000 tons per year has interesting investment returns, particularly for the case they produce renewable energy and heat and hence benefit from forms of The The study study by

by AIEL AIEL says says that that aa plant plant for for the the production production of of pellets pellets from from vine vine sprouts sprouts in in aa incentives. For this reason A.V.E. plans to concentrate to the needs of electricity and heat quantity quantity superior superior to to 10,000 10,000 tons tons per per year year has has interesting interesting investment investment returns, returns, particularly particularly for for in the future pellet plant with a CHP fueled by biomass.

the the case case they they produce produce renewable renewable energy energy and and heat heat and and hence hence benefit benefit from from forms forms of of incentives. incentives. For For this this reason reason A.V.E. A.V.E. plans plans to to concentrate concentrate to to the the needs needs of of electricity electricity and and heat heat in in For GBEFACTORY MOTHER goal is to achieve a “neutral feedback Carbon Factory,” inspithe thefuture futurepellet pelletplant plantwith withaaCHP CHPfueled fueledby bybiomass. biomass.

red by an entrepreneurial activity with sustainable energy processes, or with the use of For For GBEFACTORY GBEFACTORY MOTHER MOTHER goal goalheat isis to to achieve achieve aa "neutral "neutral feedback feedback Carbon Carbonof Factory," Factory," inspired energy from biomass and waste recovery systems.

The estimates energyinspired requireby by an an entrepreneurial entrepreneurial activity activity with with sustainable sustainable energy energy processes, processes, or or with with the the use use of of energy energy ments interms of power are approximately 350 kWe and 500 kWth.

from from biomass biomass and and waste waste heat heat recovery recovery systems. systems. The The estimates estimates of of energy energy requirements requirements in in terms termsof ofpower powerare areapproximately approximately350 350kWe kWeand and500 500kWth. kWth. • 42 •

GBEFACTORY FIGLIE FIGLIE (MINI-GBEFACTORY) (MINI-GBEFACTORY) GBEFACTORY GBE Factory

GBE Factory DEMO COLLECTION

Concerning the the MINI MINI GBEFACTORY, GBEFACTORY, the the purpose purpose isis the the 100%-satisfactory 100%-satisfactory functioning functioning ofof Concerning GBEFACTORY FIGLIE (MINI-GBEFACTORY) thermal needs needs through through renewable energy, and and on on aa later later stage stage itit will willbe bethe thesatisfaction satisfactionofof thermal renewable energy, electricity needs. needs. electricity Concerning GBEFACTORY, is the 100%-satisfactory functioning of This involves involvesthe theMINI launch of A.V.E. A.V.E. with withthe thepurpose promotion of the the BIOCOMPACTproduct, product, single This the launch of the promotion of BIOCOMPACT ininsingle thermal needsorthrough renewable energy, and on aconsider later stage it will be of the configuration in the “COMBINED” “COMBINED” version, which theaddition addition ansatisfaction absorberfor for version, which consider the of an absorber of electricity needs.

This involves the launch of A.V.E. with the promotion of the BIOCOMcold production. A.V.E bucks bucks for for charge charge its its customers customersthe the10-15% 10-15%of ofthermal thermalenergy energyper perKWh KWh PACT product, in single configuration or in the “COMBINED” version, which consider the less than retail prices given given on on the the market. market. addition of an absorber for cold production.

to exercise exercise on on your your user user very very competitive competitive caloric caloric energy energy prices, prices, the the To achieve this and to characterized by groundbreaking groundbreaking combustion technologies, quality A.V.E charge its customers the 10-15% of thermal energytechnologies, per KWh lessquality than systembucks mustforbe characterized by combustion retail pricesand given on the market.

To achieve and to exercise on your user very comtelemonitoring system of the thethis performance of BIOCOMPACT BIOCOMPACT stations the biomasses a telemonitoring system of performance of stations ininthe petitive caloric energy prices, the system must be characterized by groundbreaking comconfigurations. An An interesting interesting evolution evolution will will see see the the use useof ofpellet pelletboilers boilersand andsmart smart different configurations. bustion technologies, quality biomasses and a telemonitoring system of the performance absorbers. of BIOCOMPACT stations in the different configurations. An interesting evolution will see the use of pellet boilers and smart absorbers.

Figure 41 - Pellets boiler

Figure 42 - Pellets boiler

Figure Figure42: 42:Pellets Pelletsboiler boiler

Figure 41: Pellets boiler boiler The A.V.E. in its program to approach the market Industry with high heat demand, is testing the use of wood chips boilers with a MW of thermal power. To satisfy the electric needs of MINI-GBEFACTORY is planning to equip modules BIOCOMPACT with minicogeneration plants to make electricity available. A study is underway to see if you can overcome the levels acceptable to apply to the target of the price The A.V.E. in itsthreshold program the Industry with high heat isistesting program to to approach approach the market market Industry with highcustomers heatdemand, demand, testing per kWh of heat and electricity competitive with other offerings in the market. the use of wood chips boilers with a MW of thermal power. the use of wood chips boilers with a MW of thermal power.

To To satisfy satisfy the the electric electric needs needs of of MINI-GBEFACTORY MINI-GBEFACTORYisisplanning planningto toequip equipmodules modulesBIOCOMPACT BIOCOMPACT with mini-cogeneration plants to make electricity available.

A study is underway with mini-cogeneration plants to make electricity available. A study is underwayto tosee seeififyou you can overcome the threshold levels acceptable to apply to the target customers of the price can overcome the threshold levels acceptable to apply to the target customers of the price per per kWh kWh of of heat heat and and electricity electricity competitive competitive with withother otherofferings offeringsininthe themarket. market.

• 43 •

GBE Factory

GBE Factory DEMO COLLECTION

Figure - examine of micro-cogenerators Figure 43:43examine of micro-cogenerators

Figure - examine of micro-cogenerators Figure 44:44 examine of micro-cogenerators

• 44 •

GBE Factory

GBE Factory DEMO COLLECTION

Figure 45 - Spanner HOLZ-KRAFT CHP gasification

Figure 45: Spanner HOLZ-KRAFT CHP gasification

• 45 •

GBE Factory

GBE Factory DEMO COLLECTION

POSITIVE IMPACT ON THE ENVIRONMENT AND BENEFITS FOR INVESTORS AND USERS Spill-over effects sought by the “AGRIVITENERGY (AVE) Ltd” company have ethical and environmental features: - encourage the use of waste materials coming from the process of vine cultivation to produce energy for the benefit of the actors of the process themselves; - help in transforming the wine cultivated plains of North-eastern Veneto in areas with lower CO2 emissions.

The A.V.E energy model is based on a Circular Supply Chain, from scratch, with an array of transport logistics both as input and output that does not come from the local area, and which therefore gets high environmental and ecological implications.

Significant is then the ambition to link the agricultural supply chain with the SMEs’ energy one.

The A.V.E business model presents some deliberately not-brilliant economic characteristics, but acceptable if you consider that part of the valuable potential goes for the customers’ benefit, through a heating price that must be competitive on the market, compared to the price of fossil fuels.

This is even more understandable, if you consider the nature of ‘widespread participation’ in a company well-established in the territory.

A growth-based company. By 2015 A.V.E will achieve the doubling of GBEFACTORY MOTHER; it aims for selling heat to 50 MINI-GBEFACTORIES and to some companies of the nearby industrial areas for an installed thermal capacity of 5 / 7 MW-thermal.

The equivalent CO2 saved amounts to million of Kilograms.

• 46 •

GBE Factory

GBE Factory DEMO COLLECTION

PLAN AND TIMELINE ACTIVITIES The project “AGRIVITENERGY (AVE) Ltd”, included the following points: a) Start of the road map for the dissemination of the service AVE between members of the COAL Consortium and the companies of the industrial areas (February 2014) b) GBE FACTORY MOTHER completion and formal start away (May 2014) c) Review of the sale policies(mix biopellets and sale of heat / energy) (February 2015) d) Doubling of GBE factory Mother (October 2015) TIMELINE ACTIVITIES

2014

2015

a)Start of the road map for the dissemination of the service AVE between memebers of the COAL Consortium and companies of the industrial areas b) GBE FACTORY MOTHER completion and formal start away c) Review of the sale policies d) Doubling of GBE factory Mother

• 47 •

BULGARIA

• 49 •

GBE Factory

GBE Factory DEMO COLLECTION

Construction of biogas Installation with cogeneration for combined electricity and thermal energy production by indirect utilization of the biomass in Momchil, region of Balchik Project proposal and feasibility study 1. Background Describtion of GBE FACTORY Project The proposed investment project in the town of Balchik has significant potential to be realized as a DEMO GBE Factory because this renewable project is in progress at the moment and after the project implementation the impact of the proposed energy solutions in the building infrastructure will be expected.

The project sponsor and owner is Bulgarian company Perpetuum Mobile BG JSC. The main company’s activities are connected with investigation, construction, financing and operation of installations for utilization of wastes, production of electric and thermal energy by indirect use of the biomass, etc. The joint stock company’s shareholders of the Perpetuum Mobile BG JSC are more then 50% property of Albena JSC. One of a kind in the country this project represents our understanding of the concept „renewable energy”. The substrates we will use in the beginning are of plant origin – silage corn, but in the future we are planning to use the food waste form our mother company Albena JSCo. Using it we will not plant our fertile lend with energy crops. With the technology we are using there is no waste form the process. In the end of the line we have high quality organic fertilizer witch can be used directly on the fields.

2. DEMO GBE FACTORY Project Description The biogas plant and cogeneration facilities are situated in the terrain of Momchil, near to the town of Balchik, North-East Bulgaria of the total built up area of 2 300m2.

The Perpetuum Mobile BG JSC invests in construction installation for production of electricity and thermal energy by indirect utilization of biomass. The electric power of the installation is 1000 kWel. The thermal power of CHP plant is 1000 kWth as well. The project comprises the mounting of completely new facilities on existing concrete site. According to the project a module will be mounted that includes: one tank for destruction (fermentor) (diameter: 26.00m, height 8.00m); one secondary tank for destruction (secondary fermentor) (diameter: 26.00m, height 8.00m); one tank for storage of the worked-off biomass/residual substances (diameter: 32.00m, height 8.00m); one solid gondola “MT Alligator” 96m³.

The installation works with substrates (raw material) of plant origin – silage corn.

The biogas-installations usually work in continuous mode of operation. They are comprised of fermentors, tanks for additional slow fermentation/post-fermentors and tanks for storage of the products from the fermentation process. Inside the post-fermentor the same conditions of the liquid-media are prevailing as in the fermentor. The worked-off biomass is specially prepared for use in the agriculture with parameters similar to liquid • 50 •

GBE Factory

GBE Factory DEMO COLLECTION

natural manure.

The fermentor, the secondary fermentor and the tank for storage of residual substances are round reservoirs produced of reinforced concrete. They are covered with special, double, cone-like, gas-resistant membrane. In this way the produced bio-gas may be collected directly above the level of the liquid in the tanks and to be Figure 25 - Tanks for waste fermentation stored for intermediate storage until the moment of its use. The second cone-like membrane is used as a cap for protection from the atmosphere impact.

Its form is maintained by the air pressure through radial ventilator maintain over-pressure of about 1.5mbar. The devices for control of the over-pressure and the under-pressure guarantee that there is constant pressure from beneath and between the membranes.

The fermentors operate in mesophyle-gama fermentation under temperature of about 40°C. After the residual mass has stayed in the fermentor for certain period of time and has relieved the gas it is transferred in gas-resistant tank (second fermentor) through gas-resistant pipe system. From there, again through the pipe system, the mass passes to the end tank, where it stays until it is transported for the spreading on the agro-land.

As a result of the fermentation of renewable sources (corn silage) high-energy gas is obtained. The gas produced is transferred to a combined electricity and heating plant in the form of fuel for production of energy by generators. Hot water is produced from the heat produced from the exhaust gases and water cooling, by heat-exchangers.

The worked-off biomass that remains after the anaerobic treatment is used as an agrofertilizer and in this way is returned to the biological cycle of the farms that have supplied the initial raw-material.

The electric energy is transferred to the distribution grid and managed by the local energy provider - the company Energo Pro AD, which operate in North-East Bulgaria. The heat produced is used as heat energy that participates in the production process of the biogas installation.

The biogas installation is manufactured and is delivered by the German Company MT Energie GmbH. The Italian company AB Energy is supplied the CHP energy facilities and equipment. The construction of all facilities will be implemented by Eko Stroy AD, Bulgaria.

• 51 •

GBE Factory

GBE Factory DEMO COLLECTION

Figure 46 - CHP plant

The facility for combined electricity and thermal energy generation will be constructed near to the biogas plant which will use organic waste, providing: • • • •

Electricity for local consumers and grid; Thermal energy for factory for processing fruits and vegetables; Thermal energy for greenhouse; Heating and cooling of an administrative building.

The total generated electricity by the CHP Plant is 5100 MWhel/yr. The annual expected electricity sales revenues are in the amount of 651897 EUR. The produced electricity will be measured on the 20 kV side with the installation of a control box in the switchgear transformer station. All necessary equipment and devices such as safety relay elements, commutation and automation will be installed at the switchgear.

In accordance with the requirements of the guidelines for the operation of energy enterprises, an independent power supply of the safety relays and the control and automation devices will be secured.

58% or 4852 MWhth of generated thermal energy will be used for technological needs of the factory for processing fruits and vegetables and greenhouse per annum. The premises of the administrative building will consume about 650 MWhth (8%) of thermal energy for heating during the heating season. 24% or 2050 MWhth will be used for cooling of an administrative building. The biogas plant and CHP facilities will use 10% of the produced total thermal energy for its own needs.

Figure 47 shows digital cartographic map of the DEMO GBE Factory site.

The processing plant for fruits and vegetables owned by Eko Plod AD and greenhouse • 52 •

GBE Factory

GBE Factory DEMO COLLECTION

Figure 47 - Cartographic map of the DEMO GBE Factory

will be consumers of the generated thermal energy. The project sponsor has preliminary agreement for selling of thermal energy to the customers.

The processing of the plant biomass is not only an ecological approach but it is economically profitable and valuable market process regarding the environment protection and with high energy value as well.

3. DEMO GBE FACTORY PROJECT Benefits The benefits for of the Perpetuum Mobile BG JSC will be possibility to return back the investment through selling of generated electricity and thermal energy to the customers.

Emission reduction projects above a certain size (variable depending on type of technology) can generate carbon credits that can be monetised, in particular under the Joint Implementation mechanism of the Kyoto Protocol. Some companies that have received funding under the Bulgarian Energy Efficiency and Renewable Energy Credit Line have taken advantage of this possibility, including by selling carbon credits to the EBRD. Determination of the annual emissions of noxious gases is according to Commission Decision of 21.01.2004 establishing guidelines for the monitoring and reporting of Greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. The emissions factors elaborated by the MOEW (Methodology for calculation of emissions of noxious substances (pollutants) released into the environment based on balance methods) have been used for the noxious gases emissions assessment.

In 2014 the CO2 emissions will be reduced by 310 tons as a total result of the annual savings of electricity and natural gas by 960 MWh. The implementation of the present GBE Factory project will improve the quality of the live and thermal comfort of the occupants in the administrative building.

As a result of this energy efficiency project implementation the competitiveness of the • 53 •

GBE Factory

GBE Factory DEMO COLLECTION

manufactured products at processing fruits and vegetables and greenhouse will be expected. As a result of the energy carrier’s costs decrease, an increase in the productivity and sales of final production in these tow factories ceramic is also expected.

The new high efficient energy and process equipment and facilities mounting on the plant’s site will increase the safety at work of Perpetuum Mobile BG JSC employees. The equipment is designed and manufactured in accordance with the contemporary European standards for safety at work.

4. GEB Factory features 5. GBE FACTORY GOALS The operational purpose of the biogas installation is production of biogas. The anaerobic treatment of the biomass has the following useful and desired impacts: • Reduction of the green-house effect through replacement of fossil fuels with biogas; • Utilization of the fermented substrate as high-quality substitute of the feeding equalization of the agro-land by secondary implementation of organic substances in the natural cycle.

The production of electricity in Bulgaria is based mainly on atomic energy, fossil fuels and hydro-potential. The local energy resources of the country are insignificant. The renewable energy sources (RES) are an alternative for the development of practically inexhaustible and ecologically clean energy.

The direct benefits for the project borrower regarding the returning of the investment cost are selling of electricity. The total expected annual electricity production for CHP Plant is presented on figure below.

5 DEMO GBE Factory Project Proposal

December

November

October

September

August

July

June

May

April

March

February

800 700 600 500 400 300 200 100 0

January

Electricity Production, MWh

GBE Factory

48: Expected produced electricityby bythe the CHP CHP plant Figure 48Figure - Expected produced electricity plant

As a result of the DEMO GBE Factory project implementation the expected annual savings of the conventional fuels using in the factory for processing fruits and vegetable, greenhouse and administrative building are 2500 MWh. The cost savings after the project completion in the amount of 250000 EUR will be achieved.

• 54 • In view of the sufficient remoteness from villages and towns and from places included in the national environmental network, the additional activity – utilization of the energy from biomass is a

GBE Factory

GBE Factory DEMO COLLECTION

As a result of the DEMO GBE Factory project implementation the expected annual savings of the conventional fuels using in the factory for processing fruits and vegetable, greenhouse and administrative building are 2500 MWh. The cost savings after the project completion in the amount of 250000 EUR will be achieved.

In view of the sufficient remoteness from villages and towns and from places included in the national environmental network, the additional activity – utilization of the energy from biomass is a prerequisite for realization of the investment offer in accordance with the state policy for waste management and energy policy.

Other circumstances determining the expedience of the project are the following: • Valuable and fertile agro-lands are not affected; • There is no impact on protected territories and breaking of the network of protected zones; • Enough proximity to main road and to the permanent routes of the existing infrastructure; • Remoteness from other project sites requiring zone for health protection.

6. RES proposed solutions The proposed schemes for supply chains are a priority for Bulgaria and the business model were identified as a result of market research. The principle supply chain scheme for production of heat from biomass is given on Figure 5.

The proposed renewable solution includes principle DEMO GBE Factory project supply chain. The all stakeholders connected with production of electricity and thermal energy GBE 5 DEMO GBE Factory Project Proposal fromFactory biomass waste are shown in the table below.

Row materials Production

Tender

Transport &

Submission

Logistic

of Biomass Procurement

Storage

Study

Contract Project Step 1.2 Design

Financing

Business

Calendar

Bankable

Delivery and installation of system

Plan

Schedule

Loan

Step 2.4

Step 2.1

Step 2.2

Step 2.3

Step 1.1 Feasibility

Step 1.3 Project

Commissioning test and startup

Step 2.5 Figure 49: Principle chainoffor production thermal energy and electricity Figure 49 - Principle supply chain forsupply production thermal energyofand electricity

• 55 •

Project monitoring EE savings verification

GBE Factory

Project Design Calendar Schedule Step 2.2

Feasibility Study Business Plan Step 2.1

Figure 50 - DEMO GBE Factory project supply chain

• 56 •

Figure 50: DEMO GBE Factory project supply chain

Step 1.1

Tender Submission Procurement Contract Step 1.2

Row materials Production of Biomass

Project Financing Bankable Loan Step 2.3

Step 1.3

Transport & Logistic Storage

Step 2.4

Delivery and installation of system

5 DEMO GBE Factory Project Proposal

Step 3.2

Step 3.1

Step 4.1

Digestate

Heat Output Electrical Output

Step 2.5

Project monitoring EE savings verification Step 2.6

Commissioning test and start-up

GBE Factory GBE Factory DEMO COLLECTION

GBE Factory

GBE Factory DEMO COLLECTION

Step

Company

1.1

Eco Agro AD

Galin Ganchev

http://www.ecoagro.bg/

Albena AD

Slavcho Gigov

http://www.albena.bg/

Eco Agro AD

Galin Ganchev

http://www.ecoagro.bg/

Albena AD

Slavcho Gigov

http://www.albena.bg/

Eco Agro AD

Galin Ganchev

http://www.ecoagro.bg/

Perpetuum Mobile BG AD

Slavcho Gigov

http://www.albena.bg/

Bela Sulai

http://www.mt-energie.com/

1.2

1.3

2.1

MT Enegie GmbH Perpetuum Mobile BG AD

2.2

MT Enegie GmbH Perpetuum Mobile BG AD Forma Studio

2.3

Societe Generale Expressbank AD

2.4

MT Enegie GmbH AB IMPIANTI SRL Ecostroi AD

2.5

Contact person

Website

Slavcho Gigov Bela Sulai

http://www.mt-energie.com/

Slavcho Gigov Elitza Mnonolova

http://www.sgeb.bg

Bela Sulai Vladimir

http://www.mt-energie.com/

Oprescu Nikolai

http://www.gruppoab.it/

Nikolov

http://www.ekostroi-db.domino.bg/

MT Enegie GmbH

Bela Sulai Vladimir

http://www.mt-energie.com/

AB IMPIANTI SRL

Oprescu

http://www.gruppoab.it/

2.6

State energy and water regulatory commission

3.1

Public grid

3.2

Eco Agro AD

Galin Ganchev

http://www.ecoagro.bg/

Albena AD

Slavcho Gigov

http://www.albena.bg/

Eco Agro AD

Galin Ganchev

http://www.ecoagro.bg/

4.1

http://www.dker.bg/

Other agricultural companies Table 2 - List of stakeholders in the DEMO GBE Factory for Bulgaria

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The block diagrams of the supply chains for the potential 2 projects of Perpetuum Mobile BG JSC from which one is the proposed DEMO GBE Factory are presented on Figure 51

Figure 51 - Perpetuum Mobile BG JSC supply chains block diagrams

Figure 51: Perpetuum Mobile BG JSC supply chains block diagrams • 58 •

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7. Project work plan In the table below shows the work plan schedule for the renewable energy sources project implementation by Perpetuum Mobile BG JSC For each item, the duration is shown in months – for the period from March 2012 to December 2013.

2012 III

IV

V

VI

VII VIII

2013 IX

X

XI XII

I

II

III

IV

V

VI

VII VIII

IX

X

XI

XII

Feasibility Study Project Design Business Plan Bankable Loan Agreement Equipment Delivery Civil Works Installation Works Commissioning test and Start Up Total

Table 3 - Project work plan schedule

The project has started with the feasibility study preparation in March, 2012. In the end of 2012 the project design, business plan negotiation with commercial bank and signing of an agreement for loan were completed. The delivery of equipment to the site has started in November 2012 and was completed in March 2013.

The civil works started in November 2012 and will be finished in October 2013. The Installation works started in February 2013 and will be completed in October 2013. The 72-hour commissioning tests and start up will be carried out at the end of December 2013. Regular operation of biogas plant and CHP is envisaged for January 2014.

8. Financial Plan The GBE Factory project cash flow analysis indicates that the project’s financial indicators are sufficient to serve debt (pay loan interest and repay loan principal) within the loan terms negotiated with the bank.

The project cash flow analysis indicates that the project has very impressive financial indicators: the project payback period is 8.0 years plus 1 year grace period, IRR is 12.0% and NPV amounts to EUR 4800000.

The total GBE Factory project cost is in the amount of 4000000 EUR without VAT. The project will be financed through a 3.2 million euro ($4.18 million) loan from Bulgaria’s Societe Generale Expressbank. Albena’s AD shareholders voted on the loan at the general meeting scheduled in May 2013. The loan will be taken out for a period of nine years and its repayment will begin on July 31, 2014. It will carry an interest equal to one-month Euribor plus 5.4% during the construction of the plant, and one-month Euribor plus 4.84% during the remaining period. Perpetuum Mobile BG JSC will provide 800000 EUR own contribution for the project implementation.

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revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project GBE Factory GBE Factory

GBE Factory DEMO COLLECTION New DEMO GBE Factory Project Proposal

The cash flow analysis in this scenario shows small improvements in all financial indicators, as IRR increases to 12.7%, NPV rises fromforecasted EUR 4800000 to EUR 4812022, and the payback The cashfrom flow12.0% includes the sales of the reduced CO2 emissions, sold at the revenues are based on the emissions in tons reduced due to the implementation of the period is 8.0 years. conservative price of 15.0 EUR/ton but with no additional cost for monitoringGBE andFactory veriproject fication. The forecasted revenues are based on the emissions in tons reduced due to the implementation of the Factoryshows project.

The cash flow analysis in GBE this scenario small improvements in all financial indicators, as IRR In the table below presents the financial indicators for the both cash flow scenarios as well as the increases from 12.0% to 12.7%, NPV rises from EUR 4800000 to EUR 4812022, and the payback indicators with the sold of CO2 emissions. period is 8.0flow years.

The cash analysis in this scenario shows small improvements in all financial indicators, as IRR increases from 12.0% to 12.7%, NPV rises from EUR 4800000 to EUR 4812022, and the payback period is 8.0 years.

In the table below presents the financial indicators for the both cash flow scenarios as well as the Scenario IRR NPV Pay-Back Period indicators withbelow the sold of CO2 emissions.

In the table presents the financial indicators for the both cash flow scenarios as (%) (EUR) well as the indicators with the sold of CO2 emissions.

Base Cash Flow Cash Flow with CO2 emission trading Scenario

12.0 12.7IRR (%)

Table 4 Comparison of the financial Indicators Base Cash Flow Cash Flow with CO2 emission trading

12.0 12.7

(Yr.)

4800000 4812022 NPV (EUR)

9.0 8.0 Pay-Back Period (Yr.)

4800000 4812022

9.0 8.0

9. Risk analysis

Table44 Comparison - Comparison of of the the financial Table financialIndicators Indicators

9. Risk analysis 9.1

COMPLETION RISK

9.

Risk analysis 9.1 COMPLETION RISK Completion riskrisk includes: Completion includes: Constructionrisk risk (capital overrun); • Construction (capitalcost cost overrun); Start-up delay risk. delay risk.

9.1 • Start-up COMPLETION RISK Capital overrun Capitalcost cost overrun Completion risk includes: The equipment prices are(capital determined on of the preliminary price infor Construction costthe overrun); The equipment prices are risk determined on basisthe of basis the preliminary offers, price offers, information and mation andgathered information gathered from The design are costs. included Start-up delay risk. information from similar projects.

Thesimilar design projects. expenses are included inexpenses the equipment in the equipment costs.

Possible reasons for underestimation of the equipment costs are: Capital cost overrun  Incorrect sizing; Possible reasons for underestimation of the equipment costs are: The equipment prices are determined of the preliminary offers, price information and  Omitted equipment, necessaryon forthe thebasis conservation options; • Incorrect sizing; information gathered interpreted from similar projects. The design expenses are included in the equipment costs.  Incorrectly offer.

• Omitted equipment, necessary for the conservation options; Possible reasons for underestimation of the equipment costs are: • Incorrectly interpreted offer.



Incorrect sizing;

The results of of thethe sensitivity analysis in case of 10% increase the total project presented in are The results sensitivity case 10%ofincrease of thecosts totalare project costs  Omitted equipment, analysis necessaryinfor the of conservation options; the table below. presented in the table below. offer.  Incorrectly interpreted IRR (%)

Decrease (%)

NPV (EUR)

Decrease (EUR)

Pay-Back Period (Yr.)

Decrease (Yr.)

The results of the sensitivity analysis in case of 10% increase of the total project costs are presented in the Total tableGBE below.

Factory Project 10.8 1.2 4320000 480000 9.9 0.9 Table55Cost - Cost overrunscenario scenario Table overrun

Total GBE Factory Project

Table 5 Cost overrun scenario

IRR (%) 10.8

Decrease (%)

NPV (EUR)

1.2 • 60 • 4320000

Decrease (EUR)

Pay-Back Period (Yr.)

480000

9.9

Decrease (Yr.)

14

0.9

GBE Factory GBE Factory

New DEMO GBE Factory Project Proposal New DEMO GBE Factory Project Proposal

GBE

As aFactory result of the

GBE Factory DEMO COLLECTION above-mentioned assumption assumption IRR IRR decreases decreases by by 1.2% 1.2% to to 10.8%, 10.8%, NPV also also decreases As a result of the above-mentioned NPV decreases by EUR 480000, and the payback period is 9.9 years.

Therefore, the project’s financial indicators are

by EUR 480000, and the payback period is 9.9 years. Therefore, the project’s financial indicators are As a result of the above-mentioned assumption IRR decreases by 1.2% to 10.8%, NPV also still viable under these assumptions. still viable under these assumptions. decreases by EUR 480000, and the payback period is 9.9 years. Therefore, the project’s financial indicators are still viable under these assumptions.

Start-up delay delay risk Start-up risk The conditions conditions are are favourable for keeping the scheduled timetable. The management is highly The Start-up delay riskfavourable for keeping the scheduled timetable. The management is highly motivated and and has has created created structures structures for for project implementation. implementation. motivated The conditions are favourable for project keeping the scheduled timetable. The management is highly motivated and has created structures for project implementation.

However, the the one-month one-month start-up start-up delay delay was was analysed analysed due due to to the the following following risks: risks: However, However, the one-month start-up delay was analysed due to the following risks:  Equipment Equipment supply supply and and installation installation delay; delay;  • Equipment supply and The assembling assembling sites areinstallation not ready. ready. delay;  The sites are not • The assembling sites are not ready.

One-month delay delay willwill leadlead to IRR IRR decreases by 0.6% 0.6%by to 0.6% 11.4%,toNPV NPV alsoNPV decreases

by EUR EUR 240000, 240000, One-month delay to decreases IRR decreases 11.4%, also by decreases

by EUR One-month will lead to by to 11.4%, also decreases and the payback period is 5.45 years.

Therefore, the project’s financial indicators are still viable under 240000, and the payback period is 5.45 years.

Therefore, the project’s and the payback period is 5.45 years.

Therefore, the project’s financial indicators arefinancial still viableindicators under these assumptions. thesestill assumptions. are viable under these assumptions.

Total GBE Factory Project Total GBE Factory Project

IRR IRR (%) (%)

Decrease Decrease (%) (%)

NPV NPV (EUR) (EUR)

Decrease Decrease (EUR) (EUR)

Pay-Back Period Pay-Back Period (Yr.) (Yr.)

Decrease Decrease (Yr.) (Yr.)

11.4 11.4

0.6 0.6

4560000 4560000

240000 240000

9.45 9.45

0.45 0.45

Table delay Table 66 Start-up - Start-up delayscenario scenario Table 6 Start-up delay scenario

9.2 OPERATIONAL OPERATIONAL RISK RISK 9.2 OPERATIONAL 9.2 RISK The expected decrease of electricity production and energy savings comparing to the baseline option can of beelectricity affected by the following The expected expected decrease production and energy energycircumstances: savings comparing comparing to to the the baseline baseline option option The decrease of electricity production and savings can be be affected affected by by the the following following circumstances: circumstances: can • Incorrect impact definition during the design stage;  Incorrect impact definition during the design design stage; achieve the impact forecasted un• The proposed technology cannot technically Incorrect impact definition during the stage; The proposed technology cannot technically achieve achieve the the impact impact forecasted forecasted under under the the theproposed conditions of thecannot company; derThe technology technically conditions of the company; conditions of theoperation company; conditions are not complied with; • The prescribed  The prescribed operation conditions are are not not complied complied with; with; The prescribed operation conditions • There is a strong handling and human factor dependence evident.  There is a strong handling and human factor dependence evident.  There is a strong handling and human factor dependence evident.

This sensitivity scenario the of impact of the savings reduction compared This sensitivity sensitivity scenario showsshows the impact impact the savings savings reduction by 8% 8% compared comparedby to8% the base base case. case. to This scenario shows the of the reduction by to the the base case.

The analysis analysis shows shows that that IRR IRR decreases decreases by by 0.96% 0.96% to to 11.04%.

11.04%. The The NPV NPV decreases decreases by

by EUR EUR 384000 384000 and and The The analysis shows that IRR decreases by 0.96% to 11.04%.

The NPV decreases by constitutes EUR 4416000.

The payback period is 9.72, and under this scenario the project is still EUR constitutes EUR 4416000. The payback period is 9.72, and under this scenario the project is still attractive.and constitutes EUR 4416000. The payback period is 9.72, and under this scena384000 attractive. rio the project is still attractive.

Total GBE Factory Project Total GBE Factory Project

IRR IRR (%) (%)

Decrease Decrease (%) (%)

NPV NPV (EUR) (EUR)

Decrease Decrease (EUR) (EUR)

Pay-Back Period Pay-Back Period (Yr.) (Yr.)

Decrease Decrease (Yr.) (Yr.)

11.04 11.04

0.96 0.96

4416000 4416000

384000 384000

9.72 9.72

0.72 0.72

Table 77 Savings Savings decrease decrease scenario scenario Table Table 7 - Savings decrease scenario

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9.3 WORST WORSTCASE CASE SCENARIO 9.3 SCENARIO This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario This worst-case scenario tests the combination of all scenarios mentioned above. Under capital cost overruns by 12%, start-up of the project delays for 1 month and expected production of this scenario capital cost overruns 12%,below start-up project foranalysis 1 month electricity and savings are reduced by 12%.by Table showsof thethe results of thedelays cash flow for and expected production the worst-case scenario. of electricity and savings are reduced by 12%. Table below shows the results of the cash flow analysis for the worst-case scenario.

Total GBE Factory Project

IRR (%)

Decrease (%)

NPV (EUR)

Decrease (EUR)

Pay-Back Period (Yr.)

Decrease (Yr.)

10.56

1.44

4224000

576000

10.08

1.08

Table88Worst - Worst case scenario Table case scenario

The cash flow analysis shows that IRR decreases by 1.44%, and the NPV reduces by EUR The cash flow analysis shows that IRR decreases by 1.44%, and the NPV reduces by EUR 576000.

576000.

However, the indicators for this case still leadstill to the that the project However, thefinancial financial indicators forworst this worst case leadconclusion to the conclusion thatis financially viable.

The IRR is 10.56%, the NPV is EUR 4224000 and the payback period is 10.08 years. the project is financially viable. The IRR is 10.56%, the NPV is EUR 4224000 and the payback period is 10.08 years.

Annex A shows the presented reference case’s summary of DEMO GBE Factory Project Proposal for Annex Bulgaria.A shows the presented reference case’s summary of DEMO GBE Factory Project Proposal for Bulgaria.

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ANNEX A FEASIBILITY STUDY Project Name

Co-generation and biogas plant in Perpetuum Mobile BG Ltd. Momchil

Location (Country, Region, State/City, etc.)

Bulgaria, Balchik Municipality, Balchik city, South East Europe, EU

Project Sponsor/Customer:

Perpetuum Mobile BG JSCo

Legal Status:

Legal entity

Official Address:

9620 Albena Administrative Building, office 409 Bulgaria

Postal Address:

9620 Albena Administrative Building, office 409 Bulgaria

Telephone Number:

+359 (0) 885 853 063

Fax Number:

Not available

E-mail of the Company:

gigov@pmobile.bg

Website of the Organisation:

www.pmobile.bg

Contact Person

Mr. Slavcho Gigov – Executive Director

Number of Employees:

Micro company, less than 10 / Large if the overall company group is taken into consideration, more than 1,500 employees in the whole group

Registration Number

EIK: BG202009651

Date of Registration

06.04.2012

Type of Sector Activity:

Heat will be utilized in fruits/vegetables processing

Other information

Table 1 - Basic Information

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Scale of Project:

General

Small Scale Medium Scale Large Scale Bundling Option Considered

Type of Project:

Renewable Energy

Energy Efficiency

Fuel Switching

Fugitive

Transport

Waste Management

Land Use Forestry

Chemical Industry

Others (please specify): Fruits/vegetables processing Energy Use (E/H/C)

E/H

Brief description:

Brief Decription Present Situation at Project Site and Objective

C-generation and biogas plant from organic waste, providing: • Electricity for local consumers and grid • Heating up a greenhouse • Utilization of the heat in a processing plant for fruits and vegetables • Heating of office buildings

Proposed Activities

The main project activities are as follows: • Feasibility Study (done); • Preparation of Project Design Documents (done); • Delivery of equipment and materials (in process); • Civil / Installation Works (in process); • Commissioning test and start-up (planned);

Applied Technology/ Innovation

Anaerobic Biogas plant with Co-generation – 1 MWe / 1 MWt

Other Information

Table 2 - Project Characteristics

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Project Cost Estimate:

GBE Factory DEMO COLLECTION

Item

Amount in EUR

Project Design Equipment and Materials Civil / Installation Works Contingency Costs Commissioning Test and Start up Costs Total Project Cost Revenue/Savings after Operation:

Item (Specify Revenues/Savings)

3 700 000 Amount in EUR 400 000

Fuel/Energy Savings Natural Gas Savings LPG Savings Electricity Savings

100 000

Avoided O&M Costs Source of Finance:

Item

Amount in EUR

Equity (25%)

933,000 2,800,000

Debt (75%) Forecast Financial NPV (Net Present Value):

With Emission Credit Revenues Without Emission Credit Revenues

Forecast Financial IRR (Internal Rate of Return):

1 064 462

With Emission Credit Revenues Without Emission Credit Revenues

Pay-Back Period of Project:

9%

With Emission Credit Revenues Without Emission Credit Revenues

8.0 yr.

Opportunity for Project Funding

Implemented

Table 3 - Finance

Reduced emissions:

Item

Reduced CO2 emissions: (equivalent)

ECO2

Reduced NOx emissions:

ENOx

Reduced dust:

EDust

Amount in t/yr 389

Other:

Table 4 - Ecological Impact

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Construction of biomass boiler plant for thermal energy production by direct utilization of wood chips in motocar service company in plovdiv 1. Background Describtion of GBE FACTORY Project The proposed project in the town of Plovdiv has significant potential to be implemented as a DEMO GBE Factory because this renewable project has will have impact based on the proposed energy solutions in the existing industrial infrastructure.

The project sponsor and owner is Motocar Service Company Ltd. Motocar Service is an official representative of the German manufacturer for forklift trucks Linde Material Handling in Bulgaria.

The offered product range includes: • Forklifts - diesel and gas forklift trucks with lifting capacity from 1.2 up to 52 tonnes; • Electro forklifts with lifting capacity from 1 up to 4.8 tons; • Storage facilities (walking Reach and low electric pallet trucks, stackers, reach trucks, commission, order picker, three-machine and hand pallet trucks) with a capacity of 1 to 2.5 tonnes; • Container (richstackers) for full and empty containers with forklift from 8 up to 45 tons; • *Ex proof equipment for working in explosive and hazardous environments.

The company own a storehouse for spare parts for all models of forklift trucks Linde.

Highly skilled professionals provide warranty and service of delivered equipment. In order to improve support services is a network of 5 branches in the cities of Sofia, Plovdiv, Varna, Gabrovo, Shumen and Stara Zagora. The response time for the service staff of the entire territory of Bulgaria is within 24 hours. In parallel to these activities Motocar Service Ltd provides comprehensive processing of recycled equipment with brand Linde, designed for both Bulgarian and the European market.

Motocar Service started production of wood pellets in 01.04.2013 as an additional business in Bulgaria.

2. DEMO GBE FACTORY Project Description The factory for production of pellets is located in Bulgaria, the city of Plovdiv, Southcentral Bulgaria. The production of pellets started in 01.04.2013. The biomass plant as a part of pellets factory is situated in the terrain with total built up area of 1,200m2.

Motocar Service invests in the construction installation for production of thermal energy by high efficient steam boiler using wood chips as a fuel. The project included delivery • 66 •

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and construction works of steam boiler type RRK 1,000 with installed nominal capacity of 1,200 kWth which uses wood chips as a fuel. The proposed steam boiler and auxiliary energy equipment are constructed on the territory of the plant’s for production of pellets.

The steam boiler type RRK 1,000 is designed for production of saturated steam with pressure of 6 bar and temperature of 165 oC. The nominal boiler steam output is 1.5 ton per hour.

The boiler is also equipped by oil burner type Weishaupt model “W50” with capacity of 840 kW and oil supplying line, reduce and safety valves, back camera, control panel, C&I and level regulator. The steam boiler is covered by thermal aluminium insulation with low heat transfer coefficient.

Installation of water treatment system with capacity of 2m3/h is installed. The water treatment system is equipped by two column-filters, filter for raw water, and two feeding water pumps with power capacity of 11 kW each. The new equipment will increase the quality of the feed water for steam generation through softening of the feeding water.

After softening the water will be transported to a tank for softened water. The tank for softening water will be completed by deareation installation.

The deaeration installation is equipped by thermal atmosphere deaerator with capacity of 3 m3, mixed head-stock, immersion pipe, reduce and temperature control valves and recirculation pumps. Deareation installation will separate the oxygen and other aggressive gasses from the boiler feeding water.

The technical measure envisages delivery and installation of a metal chimney for emitting of the exhausted gasses after the steam boiler. The chimney has diameter of 400 mm and height of 15 m.

The biomass boiler and auxiliary process equipment is manufactured and is delivered by the Austrian Company Josef BINDER Maschinenbau u. Handelsges.m.b.H. Programmable logic controller with interdependent control loops and safety devices for steam boilers suited for 24 hours fully automatic operation without constant supervision (BOSB 24h): • Fully modulating fuel supply, coordinated with boiler temperature, fluegas temperature and lambda O2; • Controlled combustion air supply, dependant on load and fuel, through speedcontrolled fans; • Balanced draft control through differential pressure array and speed-controlled exhaust fan, for constant negative pressure; • Auxiliary slumbering mode in case the auto-ignition fails; • Control of feed water valve, feed water pump, and blow-down; • Required safety routines for fully automatic operation without constant supervision, offering 24 hour monitoring (BOSB 24h); • With safety PLC conforming to SIL3-level, incl. Modbus module for the communication with the PLC series 9030; • UPS module (1000 VA), serving the PLC; • With inverters for the speed-controlled fans; • With lambda oxygen sensor incl. evaluating processor, temperature sensors and thermostats, unless already mounted; • Switchboard for all subcomponents and modules acc. to .VE EN 60204-1; • Feed water pump, feed water valve, water treatment, steam.

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The construction of biomass plant building is implemented by Motocar Service. All installation works civil works, commissioning test and start up of the installed equipment and systems were implemented by VS Engineering Ltd. Figures below present the constructed pellet factory and biomass boiler in the terrain of Motocar Service.

GBE Factory

Figure 52 - Pellets factory

New DEMO GBE Factory Project Proposal

Figure 52 - Pellets factory

Figure 53: Biomass boiler The total generated thermal energy to the dryer in the pellets factory is 2,880 MWhth/yr.

The produced steam will be transported to the drying with capacity 2 ton per hour trough steel pipe with diameter of 160mm. All necessary equipment of the distribution line like Thesafety total relay generated thermal energy to the dryer in the pellets factory is 2,880 MWhth/yr. elements, commutation and automation are installed. In accordance with the of thewill guidelines for the operation of energy enterprises, an per independent Therequirements produced steam be transported to the drying with capacity 2 ton hour trough power supply of the safety relays and the control and automation devices is secured. steel pipe with diameter of 160mm. All necessary equipment of the distribution line like

safety relay elements, and automation are In accordance Figure 52 and Figurecommutation 53 shows visualisation diagrams of installed. the technological processwith and the requirements of the theboiler guidelines for the operation energy enterprises, an independent monitoring of parameters in the biomassofboiler plant. power supply of the safety relays and the control and automation devices is secured.

Figure 34 and Figure 35 shows visualisation diagrams of the technological process and monitoring of the boiler parameters in the biomass boiler plant.

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Figure 54 - Visualisation diagram of combustion process in the boiler

Figure 55 - Visualisation diagram of flow control and boiler capacity

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3. DEMO GBE FACTORY PROJECT Benefits The benefits for of the Motocar Service Company Ltd will be possibility to return back the project cost regarding the boiler plant construction through selling of produced wood pellets to the customers. According to the factory management forecast the annual production of wood pellets of 4,800 ton is expected. The average price for 1 ton pellets is 200 EUR/t. The annual sells of wood pellets will lead to the turnover in the amount of 960,000 EUR/yr. The actual revenues based on the production of pellets will be 432,000 EUR/yr.

The thermal energy savings from energy carrier costs in case of implementation of the new steam boiler are achieved by the difference of the purchasing price for energy (natural gas) for the process of drying as a part of production of wood pellets and the wood chips price for its consumption for steam generation for technological needs.

The operational costs for the project implementation include all costs related to the operation of the new steam boiler, water treatment system and deaeration installation in the boiler station and are presented by the following components: • Salaries for the operational staff servicing the new equipment; • Social security cost for the operational staff servicing the new equipment; • All cost related to the equipment maintenance, repair and spare parts, performed by the staff; • All cost for training of the operational staff, working clothes and protection equipment.

The cost for purchasing of wood solid waste and electricity for plant technological own need are taken into consideration too.

Emission reduction projects above a certain size (variable depending on type of technology) can generate carbon credits that can be monetised, in particular under the Joint Implementation mechanism of the Kyoto Protocol. Some companies that have received funding under the Bulgarian Energy Efficiency and Renewable Energy Credit Line have taken advantage of this possibility, including by selling carbon credits to the EBRD. Determination of the annual emissions of noxious gases is according to Commission Decision of 21.01.2004 establishing guidelines for the monitoring and reporting of Greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. The emissions factors elaborated by the MOEW (Methodology for calculation of emissions of noxious substances (pollutants) released into the environment based on balance methods) have been used for the noxious gases emissions assessment.

In 2014 the CO2 emissions will be reduced by 78 tons as a total result of the annual savings of natural gas by 2,880 MWhth.

As a result of this renewable project implementation the competitiveness of the manufactured products at processing of wood pellets will be expected. As a result of the energy carrier’s costs decrease, an increase in the productivity and sales of final production in Motocar Service pellet factory is also expected.

The new high efficient energy and process equipment and facilities mounting on the • 70 •

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plant’s site will increase the safety at work of Motocar Service Company Ltd employees.

The equipment is designed and manufactured in accordance with the contemporary European standards for safety at work.

4. GEB Factory features Production of pellets in Motocar Service from wood is an industry that falls in the energy sector as a source of heat production. Wood pellets are part of the family of renewable energy sources (RES) and just fuels from biomass.

Biomass fuels vary in a wide range of flammable / combustible products from food to wood waste. Using these resources worldwide is still at an early stage, but a form of biomass fuel - wood pellets started to become recognizable feature of a number of applications that can replace fossil fuels. In the process of decomposition of the waste biomass are released gases which are much more harmful than carbon dioxide, which is released during the combustion of the same wastes. Waste products are burned to produce heat and electricity, instead of being stored in landfills where they decompose. In certain cases, plants grown specifically for use in the manufacture of fuel to spare pollution. Part of it is burned without further processing, but there is a growing trend in the pressing of these wastes into pellets or briquettes. Both products have the same energy form the material from which they are made, but in contrast, are much more durable, easy to transport, produce less garbage and burn more efficiently. Pellets can be made from many materials including: grass, straw, moss, food waste and wood waste. Appliances for burning pellets are becoming better, efficient, with the ability to provide heating with almost no side intervention. These devices range from large boilers and special equipment for fireplaces to industrial solutions.

The process of converting wood waste into pellets is presented in the chart below. Each step in the process adds value to the entire process. Maintenance costs refer to the entire chain and therefore are included in operating costs. Since there is some variation in the management of processes, depending on the technology, types of raw material and equipment prices, these variations are small compared to the price of raw material and logistics costs. It is these differences to determine how profitable you will be undertaking.

5. GBE FACTORY GOALS Wood pellets are the most common form of biofuel derived from biomass. Soft wood (pine, fir, spruce, poplar, etc.) are the main raw material used for the production of pellets.

The pellets are prepared by a technological process wherein finely ground pulp is compressed under high pressure. During the pressing separated lignin contained in the wood, which acts as a natural glue soldering of wood particles. There are several major emphasis having a significant influence on our choice to invest in the production of pellets, and we can say that they are more favorable: • Production of pellets falls in the renewable sector (renewable energy), which is one of the main priorities of the EU; • 71 •

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 The Bulgarian market is underdeveloped with respect to demand for quality pellets; Serious program “Rural Development” - Measure 123;  • The lack funding of real factories producing pellets (mainly has factories of the "gather • Mountains"), The Bulgarian market is underdeveloped with respect to demand for quality pelleading to a deficit in the market for quality pellets; lets;  Unrestricted market outside the territory of Bulgaria; • The lack of real factories producing pellets (mainly has factories of the “gather The increasing growth of users of pellets for heating; Mountains”), leading to a deficit in the market for quality pellets;  Limitation of hotels in the resorts to use firewood, leading to passage of pellet • Unrestricted market outside the territory of Bulgaria; heating; • The increasing growth of users of pellets for heating;  Low cost for heating; • Limitation of hotels in the resorts to use firewood, leading to passage of pellethe Credited to "Energy Efficiency" to purchase pellet boilers. ating; • Low cost for heating; Production of pellets is major funding program "Rural Development" • Credited to “Energy Efficiency” to purchase pellet boilers. - Measure 123, which is

one of the largest program not only budget but also as the maximum grant for the project, which can reach up to an amount of € 4,000,000.

Production of pellets is major funding program “Rural Development” - Measure 123, which is one of the largest program not only budget but also as the maximum grant for the

The operational purpose the installation is production of steam for technological project, which can reachofup tobiomass an amount of € 4,000,000. need connected with the production of wood pellets The operational purpose of the biomass installation is production of steam for technological need connected with the production of wood pellets.

Pellet production is a promising business. The market is steady growth in Europe. All Pellet production is a promising market is supply. steady growth in Europe. indicators show steady growth as business. demand isThe greater than Key success factorsAll of inthe dicators show steady growth as demand is greater than supply.

Key success factors of project are the geographic location of the facility relative to the raw material and the the project are the geographic location of the facility relative to the raw material and the organization of perfect logistics. organization of perfect logistics.

Monthly steam generation, MWh

The monthly expected annual steam production from biomass plant is presented on Figure The monthly expected annual steam production from biomass plant is presented on below.

Figure below.

600 500 400 300 200 100 0 1

2

3

4

5

6

7

8

9

10

11

12

Months Figure 56Expected - Expectedproduced produced steam steam by plant Figure 56: bythe thebiomass biomass plant

6. RES proposed solutions The proposed schemes for supply chains are a priority for Bulgaria and the business model were identified as a result of market research. The principle supply chain scheme for production of thermal energy from wood chips is given on Figure 37.

GBE Factory

GBE Factory DEMO COLLECTION

6. RES proposed solutions TheGBE proposed for Bulgaria the business moFactory schemes for supply chains are a priority New DEMO GBEand Factory Project Proposal del were identified as a result of market research. The principle supply chain scheme for GBE Factory of thermal energy from wood chips is given New DEMO GBE Factory production on Figure 57. Project Proposal Waste for Production of Wood Chips Waste for Production of Wood Chips

Tender

Transport &

Submission Tender Submission Procurement

Logistic Transport & Storage Logistic

Storage Contract Step 1.3 Delivery Commissioning Feasibility Procurement Project Project Step 1.2 and test and startStudy Design Financing Contract installation Step 1.3 up Delivery Commissioning Feasibility Project Project of system Business Calendar Bankable Step 1.2 and test and startStudy Design Financing installation Step 2.4 Plan Schedule Loan up of system Business Calendar Bankable Step 2.1 Step 2.2 Step 2.3 Step 2.4 Step 2.5 Plan 57: Principle supply Schedule Loan Figure chain for production of thermal energy Step 2.1

Step 2.2

Step 2.3

Figure energy Figure57: 57 Principle - Principlesupply supplychain chainfor forproduction production of of thermal thermal energy

Project monitoring verification Project monitoring verification

Step 2.5

The proposed renewable solution includes principle DEMO GBE Factory project supply chain (see Figure below).

The proposed renewable solution includes principle DEMO GBEproject Factory project The proposed renewable solution includes principle DEMO GBE Factory supply chainsupply chain (seebelow).

Figure below). (see Figure

Wood pellets plant Wood pellets plant Sales Department (Seller) Sales Department (Seller) Buyer Buyer Sales Department Sales Department Distributor (Trader) Distributor (Trader) Retailer

Municipalities

Retailer

Municipalities End consumers End consumers

58: Flow of wood of Motocar FigureFigure 58 - Flow chart chart of wood pellet pellet supplysupply chainschains of Motocar ServiceService Figure 58: Flow chart of wood pellet supply chains of Motocar Service

Figure belowpresents presents flow the process of trade and logistic of wood Figure below flowchart chartofof the process of trade and logistic ofpellets. wood pellets.

Figure below presents flow chart of the process•of73trade and logistic of wood pellets. •

GBE Factory

New DEMO GBE Factory Project Proposal

GBE Factory

GBE Factory DEMO COLLECTION

Reciept of biofuels

Sieving Loading

Figure 60: Technical chart of biomass plant

Figure 59 59:-Flow process of of trade tradeand andlogistic logisticofofwood woodpellets pellets Figure Flow chart chart of of the the process

GBE Factory

New DEMO GBE Factory Project Proposal

Delivery

Figure 60 - Technical chart of biomass plant

Drying of biomass use different structure dryers. Among commonly used are: drum dryers, single strand and multi-band dryers, pneumatic dryers, working with superheated steam, microwave dryers. Choosing the Right drying installation depends on many factors including the size and characteristics of the feedstock, capital expenditure requirements associated with the operation of the installation and maintenance, energy efficiency, availability of waste heat, etc. • 74 •

31

Drying of biomass use different structure dryers. Among commonly used are: drum dryers, single strand and multi-band dryers, pneumatic dryers, working with superheated steam,

Pellets/chips

Storage

D i s t r i b u t i o n

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GBE Factory DEMO COLLECTION

Drying systems can be classified on various grounds. Among the most commonly used are the pressure of the drying agent, the condition of the wet material, the shape of the solid materials, the manner in which heat is supplied.

Depending on the pressure of the drying agent drying systems generally are divided into drying at atmospheric pressure and vacuum drying. Advantageously drying of the biomass in the vacuum drying is that due to the low boiling point of water is reduced and the required drying temperature, which allows the use of waste heat. On the other hand, the capital costs are higher.

Depending on the condition of the wet material drying systems typically divide a drying for drying the solid material, the drying of solutions, suspensions and pastes. Depending on the shape of the solid materials are particulate and drying particulate material, for sheet materials. Depending on the way in which the drying process is performed at the time different continuous dryers and dryers with intermittent batch operation. Depending on how the heat input to the material drying systems are divided into.

Figure 62 - Storage for wood pellets

Figure 61 - Drier for row materials

7. Project work plan Figure below shows the work plan schedule for the renewable project implementation by Motocar Service Company Ltd. For each item, the duration is shown in months – for the period from May 2012 till April 2013.

2012 III

IV

V

VI

VII VIII

2013 IX

X

XI XII

Feasibility Study Project Design Business Plan Bankable Loan Agreement Equipment Delivery Civil Works Installation Works Commissioning test and Start Up Total

Figure 63 - Project work plan schedule

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I

II

III

IV

V

VI

VII VIII

IX

X

XI

XII

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The project has started with the feasibility study preparation in May, 2012. In the end of 2012 the project design, business plan negotiation with commercial bank, signing of an agreement for loan and delivery of equipment were completed. The civil works has started in November 2012 and was completed in January 2013. The Installation works started in January 2013 and is completed in March 2013. The 72-hour commissioning tests and start up will be carried out in April 2013.

8. Financial Plan The Motocar Sercice Company GBE Factory project cash flow analysis indicates that the project’s financial indicators are sufficient to serve debt (pay loan interest and repay loan principal) within the loan terms negotiated with the bank.

The total GBE Factory project cost is in the amount of 1,400,000 EUR without VAT. The project cash flow analysis indicates that the project has very impressive financial indicators: the project payback period is 3.2 years plus 1 year grace period, IRR is 21.2% and NPV amounts to EUR 470,880.

The cash flow includes the sales of the forecasted reduced CO2 emissions, sold at the conservative price of 15.0 EUR/ton but with no additional for monitoring andProposal veriGBE Factory Newcost DEMO GBE Factory Project fication. The forecasted revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project.

The cash flow analysis in this scenario shows small improvements in all financial indicators, The flow analysis in this scenario shows all financial as IRRcash increases from 21.2% to 21.9%, NPV risessmall from improvements EUR 470,880 toinEUR 494,424,indicaand the tors, as IRR increases from 21.2% to 21.9%, NPV rises from EUR 470,880 to EUR 494,424, payback period is 2.5 years. and the payback period is 2.5 years.

Table below presents the financial indicators for the both cash flow scenarios as well as the Table below presents the financial indicators for the both cash flow scenarios as well as indicators with the sold of CO2 emissions. the indicators with the sold of CO2 emissions.

Scenario

IRR (%)

NPV (EUR)

Pay-Back Period (Yr.)

Base Cash Flow Cash Flow with CO2 emission trading

21.2 21.9

470880 494424

3.2 2.5

Tabel 9: 9 -Comparison Comparison of Indicators Table ofthe thefinancial financial Indicators

deciding on the feasibility of the project for the production of pellets should be taken InIndeciding on the feasibility of the project for the production of pellets should be taken into into account fixed costs (initial investment costs) and variable costs for the production of account fixed costs (initial investment costs) and variable costs for the production of pellets pellets by making an estimate of pricing and making several financial models for how winby making an estimate of pricing and making several financial models for how winner can ner can not be the business. Financial models are made based on cost, capacity now, the not be the business. Financial models are made based on cost, capacity now, the source of source of raw materials, technology and market potential that will be realized production. raw materials, technology and market potential that will be realized production.

9. Risk analysis

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GBE Factory DEMO COLLECTION

9. Risk analysis 9.1 COMPLETION RISK Completion risk includes: • Construction risk (capital cost overrun); • Start-up delay risk.

Capital cost overrun The equipment prices are determined on the basis of the preliminary offers, price information and information gathered from similar projects. The design expenses are included in the equipment costs. Possible reasons for underestimation of the equipment costs are: GBE Factory

New DEMO GBE Factory Project Proposal

• Incorrect sizing; • Omitted equipment, necessary for the conservation options; • Incorrectly interpreted offer.

IRR Decrease NPV Decrease Pay-Back Period (%)

(%)

(EUR)

(EUR)

(Yr.)

Decrease (Yr.)

Pay-Back Period (Yr.)

Decrease (Yr.)

The results of the sensitivity analysis in case of 10% increase of the total project costs are Total GBEin Factory Project 2.12 423792 47088DEMO GBE3.52 0.02 presented Table below. 19.08 GBE Factory New Factory Project Proposal Table 10: Cost overrun scenario IRR (%)

Decrease (%)

NPV (EUR)

Decrease (EUR)

As aTotal result the Project above-mentioned assumption IRR decreases to 19.08%,0.02 NPV also GBE of Factory 19.08 2.12 423792 47088 by 2.12% 3.52 decreases by EUR 47,088, and the payback period is 3.52 years. Therefore, the project’s financial indicators are still viableTable under assumptions.

Table 10 - Cost overrun scenario 10:these Cost overrun scenario Start-up delay risk above-mentioned assumption IRR decreases by 2.12% to 19.08%, NPV As result the As aaresult ofofthe above-mentioned assumption IRR decreases by 2.12% to 19.08%, NPV also also decreases by EUR 47,088, and the payback period is 3.52 years. Therefore, the The conditions are47,088, favourable scheduled The management is decreases

by EUR and for the keeping payback the period is 3.52 timetable. years. Therefore, the project’s project’s financial indicators are still viable under these assumptions. highly motivated and structures project implementation. financial indicators arehas stillcreated viable under thesefor assumptions.

However,delay the one-month start-up delay was analysed due to the following risks: Start-up risk The conditions are favourable for keeping the scheduled timetable. The management is Start-up risk  delay Equipment supply and installation delay; highly motivated and has created structures for project implementation.  The assembling sites are ready.the scheduled timetable. The management is The conditions are favourable for not keeping However, the one-month start-up delay was analysed due to the following risks: highly motivated and has created structures for project implementation.

• Equipment supply and installation delay;

However, one-month start-up delay analysed to the following • the The assembling sites notwas ready.

One-month delay will lead to IRRare decreases by 1.66%due to 20.14%, NPV alsorisks: decreases by EUR 23,544,andEquipment the payback period isinstallation 3.36 years.delay; Therefore, project’sNPV financial indicators are and One-month delay willsupply lead to IRR decreases by 1.66% the to 20.14%, also decreases by still viable these assumptions.  under Theand assembling sites are not is ready.

EUR 23,544, the payback period 3.36 years. Therefore, the project’s financial indicators are still viable under these assumptions.

Decrease by 1.66% NPV to 20.14%, Decrease NPV Pay-Back Decrease One-month delay will lead toIRR IRR decreases alsoPeriod decreases

by EUR (%) (%) (EUR) (EUR) (Yr.) (Yr.) 23,544, and the payback period is 3.36 years. Therefore, the project’s financial indicators are still Total viable under GBE Factorythese Projectassumptions.

20.14 1.06 447336 23544 3.36 0.16

Table 11 Start-up delay scenario

Table 11 - Start-up delay scenario

9.2 OPERATIONAL RISK Total GBE Factory Project

IRR (%) 20.14

Decrease NPV (%) (EUR) • 77 • 1.06

447336

Decrease (EUR)

Pay-Back Period (Yr.)

Decrease (Yr.)

23544

3.36

0.16

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GBE Factory DEMO COLLECTION

9.2 OPERATIONAL RISK The expected decrease of electricity production and energy savings comparing to the baseline option can be affected by the following circumstances: • Incorrect impact definition during the design stage; • The proposed technology cannot technically achieve the impact forecasted under the conditions of the company; • The prescribed operation conditions are not complied with; • There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by New 1.7%DEMO to 19.5%.

NPV decreases GBE Factory GBE The Factory Project Proposal

by EUR 37,6700 and constitutes EUR 432,210. The payback period is 3.46, and under this GBE Factory New DEMO GBE Factory Project Proposal scenario the project is still attractive.

Total GBE Factory Project

IRR (%) IRR (%) 19.50

Total GBE Factory Project

19.50

Decrease (%) Decrease (%) 1.70

NPV (EUR) NPV (EUR) 433210

Decrease (EUR) Decrease (EUR) 37670

Pay-Back Period (Yr.) Pay-Back Period (Yr.) 3.46

Decrease (Yr.) Decrease (Yr.) 0.26

1.70

433210

37670

3.46

0.26

Table 12 Savings decrease scenario Table 12 - Savings decrease scenario

Table 12 Savings decrease scenario

9.4 WORST CASE SCENARIO 9.3 WORST CASE SCENARIO 9.4 WORST CASE SCENARIO This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario capitalscenario cost overruns 12%, start-up ofscenarios the project delays for 1 month This worst-case tests thebycombination of all mentioned above.

Under and this This worst-case scenario tests the combination of all scenarios mentioned above. Under expected production of electricity and savings are reduced by 12%.

Table below shows the scenario capital cost cost overruns by 12%, start-up of ofthe month and and this scenario capital overruns by 12%, start-up theproject projectdelays delaysfor for11 month results of the cash flow analysis forand the worst-case expected electricity savings arescenario. reduced by 12%.

Table below shows the expectedproduction productionofof electricity and savings are reduced by 12%.

Table below shows results of theofcash flow analysis for thefor worst-case scenario. the results the cash flow analysis the worst-case scenario.

Total GBE Factory Project

IRR (%) IRR (%) 18.66

Total GBE Factory Project

18.66

Tabel 13 - Worst case scenario

Decrease (%) Decrease (%) 2.54

NPV (EUR) NPV (EUR) 414374

Decrease (EUR) Decrease (EUR) 56506

Pay-Back Period (Yr.) Pay-Back Period (Yr.) 3.58

Decrease (Yr.) Decrease (Yr.) 0.38

2.54

414374

56506

3.58

0.38

Table 13 Worst case scenario

Table 13 Worst case scenario The cash flow analysis shows that IRR decreases by 2.54%, and the NPV reduces by EUR 56,506. this worst case still lead to the the NPV conclusion the The cashThe flowfinancial analysisindicators shows thatforIRR decreases by 2.54%, and reducesthat

by EUR project is financially viable. The IRR is 18.66%, the NPV is EUR 414,374 and the payback 56,506. financial indicators for this case still lead to the that theby project The cashThe flow analysis shows that IRRworst decreases by 2.54%, andconclusion the NPV reduces EUR period is 3.58 years.

is financially viable. The IRR is for 18.66%, the NPV EUR 414,374 and the payback is 56,506.

The financial indicators this worst caseisstill lead to the conclusion that theperiod project 3.58 years. viable. The IRR is 18.66%, the NPV is EUR 414,374 and the payback period is is financially 3.58 years.

• 78 •

• 79 •

SLOVAKIA

• 81 •

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Project of energetic valuation of waste for City of Košice in eastern Slovakia – new steam generator K2 1. Background description of GBE Factory Project Due to worsening of the climate conditions and absence of appropriate measures with a scope broad enough to help the environment, the European Council has introduced the Europe 2020 program, according to which the EU agreed to increase the share of renewables in final energy consumption to 20 percent by 2020. Environment thus becomes one of the priority areas of the European Union. To support the shift towards a resource-efficient and low-carbon economy, our economic growth must be decoupled from resource and energy use by: • reducing CO2 emissions • promoting greater energy security • reducing resource intensity of what we use and consume.

A GREEN – BLUE ENERGY FACTORY project promotes the transition from fossil fuel warehouses to second generation industrial and commercial buildings. The GBE Factory project aims at accelerate the deployment of bio-sources and other major natural resources arising from the sky and the earth for heating, cooling and electricity production in new or rehabilitated commercial and industrial buildings. In this way GBE FACTORIES can not only be self-sufficient industrial/commercial energy buildings, tending to zero emissions, but also real RES generation plants, that can share renewable electricity and thermal energy with the surrounding industrial or commercial area.

The proposed investment project of energetic valuation of waste for the City of Košice in eastern Slovakia will become a part of the European DEMO GBE Factory circuit because of efficient use of communal waste and distribution of the energy obtained from its incineration. A major benefit of the project is increased energy recovery of waste as heat incinerator will produce so-called green (renewable) energy. Energy recovery from waste is part of the non-hazardous waste management hierarchy. Converting non-recyclable waste materials into electricity and heat generates a renewable energy source, reduces carbon emissions by offsetting the need for energy from fossil sources and reduces methane generation from landfills.

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2. Description of DEMO GBE Factory Project Waste collection, transport, processing, and disposal are important for both environmental and public health reasons. Municipal solid waste (MSW) is composed of different materials or commodities. It is not simply trash. MSW contains valuable commodities such as paper, cardboard, aluminum, steel and energy. An integrated waste management system considers fluctuating recycling markets, energy potential and long-term landfill costs and capacity to make a sustainable waste management strategy.

According to Waste management plan of Slovakia for 2011-2015, the strategic objective is diversion from landfill, respectively minimizing (with a view to phasing out) land filling of recyclable and bio-waste. Energy recovery from waste is the conversion of nonrecyclable waste materials into useable heat, electricity, or fuel through a variety of processes, including combustion, gasification, pyrolysis, anaerobic digestion, and landfill gas recovery. Waste is an energy source at the level of brown coal. The purpose of the project is to build a new steam generator boiler K2, which will be located inside the existing building, in the boiler room, in the area of the existing waste hopper, using also the area of the rubble treatment building, which is located next to the boiled building. Existing fire grate will be retained and will be connected to the new boiler K2. Along with the boiler, a compatible flue gas filtering device will be installed in a way and with parameters that ensure the discharge of air pollutants in accordance with current legislation (a separate project proposal will be prepared for the flue gas cleaning system). The above-mentioned solution will be applied in Kosit urban wastes incineration plant in order to obtain a safe and economical way of energy recovery from civil and industrial wastes.

The main purpose of the investment is to use the residual steam to generate electric energy and to produce additional steam, operating two lines simultaneously through the use of residual biomasses and civil sludges, i.e. renewable sources. This energy production will contribute to maintain existing prices for the disposal of municipal waste. The investment will bring security and stability operations as well as lower maintenance costs for the facilities and thus contribute to a thriving city property.

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Location The project is located in the cadastral area of Barca 827,380, deed 2626 parcel number 2705/1, owned by the investor.

The municipal waste incinerator, including related operations, is located at a distance of about 4 km from the southern edge of the urban area of the city, belonging to the land register of the Kokšov- Bakša village. From the north-west, the area of operation is adjacent to Figure 64 - Areal view of Teko the municipal wastewater treatment plant Bakša, from the south-eastern side it is neighbouring with a broad gauge railway line. On the south side it boarders with farmed agricultural land. An integral part of the area of operation is a waste transfer station with capacity of 18 000 m3. There are no protected or environmentally sensitive areas in the place of interest.

Košice is the second largest city in Slovakia. It is a metropolis of eastern Slovakia situated near the borders of Hungary (20 km), Ukraine (80 km) and Poland (90 km). The town disposes of production sphere, shopping network, services, schools, scientific and research base, sport, recreation and other technical infrastructure. The city itself has an area of 242,768 km2, 240 688 inhabitants and a residential density reaching 991 people/km2.

Figure 65 - The project area of Barca

• 84 •

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About Kosit Kosit is a modern joint-stock company, which provides services in the field of waste management. KOSIT a.s. is one of the five most important companies in Slovakia active in this demanding and socially sensitive industry. 66 % percent of its shares are held by the Italian investors, 34% by the city of Košice.

The company currently provides services for approximately 260 000 residents of eastern Slovakia and for 500 business companies. It treats more than 80 000 tons of waste and employs more than 400 workers annually. The company uses a certified quality management systems ISO 9001 and 14001 for managing its processes. KOSIT is in charge of treatment and valorisation of the waste of Košice and its 14 neighbouring villages. Its activities are organized around collecting, sorting, storage and incineration of communal waste. It is one of only two MSW incineration stations in the whole Slovakia. Any waste that cannot be recycled is incinerated, thereby producing heat, which offers more value and utility. This heat is sold in the form of steam to another local company, TEKO. The profits generated by the sale of heat and the economies of scale obtained make it possible to guarantee a low and dependable prices.

A network for integrated heat production and distribution TEKO is a heat production company supplying Košice’s network of remote heating, to which 85% of the city is connected. TEKO, with a production of 855 MW, is the largest producer of heat in both Slovakia and the Czech Republic. Around 70% of heat from TEKO is sold in form of hot water steam to a municipal service enterprise TEHO, fully owned by the city of Košice. TEHO is responsible for the distribution network of heat that aliments 85% of the city. The flowchart represents the exchange between the three companies and the city of Košice.

After the implementation of the project, KOSIT’s energy efficiency will increase significantly. Energy efficiency will generate both larger profits for all 3 companies and allow a total reduction of CO2 emissions. The CHP (combined heat and power) process itself assists such energy efficiency, even if when certain steps are carried out individually.

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Benefits of DEMO GBE Factory Project Benefits for the investor Integration of this kind of project will increase the total environmental impact and financial results of the company. The production of electricity for own purpose will result in a benefit concerning the decrease in the external purchase of power and decrease in operational costs. The additional energy production will contribute to maintain existing prices for the disposal of municipal waste and the comFigure 66 - Flowchart of the exchanges pany’s competitiveness. The investment is up to 27 404 000, - EUR. However, the payback period of the investment is 8,7 years compared to its lifetime which is 30 years.

General benefits Sustainability, integrated waste management system, safety and reliability of operation, production of green energy from its flowing price stability are the main benefits of the whole investment company KOSIT for Košice and its inhabitants. In addition to security and stability of operations, the investment will bring a lower maintenance costs for the facilities and thus contribute to a thriving city property. One must not forget to mention that this project facilitate dealing with the labour demand and thus increases standard of living in the region.

Positive environmental impact Regarding positive environmental benefits, emissions expected after K2 line operation fed by sludges and biomasses, are supposed to be lower than in the present days, with reference to greenhouse gas emissions. Techniques of denitrification, electrostatic separation and smoke filtering allow to decrease greatly the emission rates (of nitrous oxide, sulfur dioxide, and mobile particles in particular), which are thereby much lower than the national standards allow.

The additional emissions produced per unit of energy are practically equal to zero. That is very efficient system, if considering that nowadays they are for the first half recovery of energy wasted in the atmosphere, and for the remaining part connected to energy acquired from renewable sources.

Another positive effect to be mentioned is that more attention is now being paid to monitoring the environment around the incineration station. The Regional Public Health Office in Košice admitted that the pollution around the enterprise originates in the past rather than from the current operations. The company is, nevertheless, acting very responsibly in order to achieve the best possible environmental results. The emissions have decreased; company is still covering costs for regular monitoring of the environment and employees. The employees are obliged to follow all the safety regulations in the company • 86 •

GBE Factory

GBE Factory DEMO COLLECTION

as well as the safety regulations given by the Slovak legislation. In order to dealing with soil pollution, common flax has been sown around the establishment. The plant is well known for its ability to detoxicate soil of the pollution by heavy metals. Moreover, by its actions, the company also contributes to the revitalization of the region by completing the infrastructure, which is undoubtedly a valuable strategic investment. Waste is becoming greater problem for the society every year. In the past, waste separation was a very distant fi eld from the citizens. Therefore KOSIT company and the town of Košice decided to pay systematic and complex attention to this issue. KOSIT is contributing to raising the awareness of the importance of waste separation. The company funds educational projects for children and the youth, such as projects for Separated Waste Collection- SEPARKO, Enviroolympiada, Enviroshow, Deò Zeme (Earth Day) . It was thought that youth are among the most receptive and the effort, therefore, is of a high importance for the future. Garbage bins and recycling containers are set up throughout the city and garbage bags of 3 different colours are distributed for sorting purposes, along with flyers and instruction leaflets. In an effort to disseminate its know-how, Kosit also trains environmental minded students on awareness techniques for children.

GBE FACTORY PROJECT FEATURES The tonnage of municipal waste produced yearly in Košice has increased from 71,070 tons in 1992 to about 91 735, 7 tons in 2000. The majority of this waste is incinerated in Košice (according to state statistics it is 80 000 tons, 10t/h). The Košice incinerator launched its operations in the 1990s under the ownership of the city. Since the beginning, the incinerator was equipped for emission prevention with only an electrostatic separator of solid particles. Any other mechanisms for elimination of hazardous emissions were not installed DEMO GBE Factory Project Proposal until recently. At the end of 2000, the Košice Municipality organised a selection procedure for new investors to modernize the Košice municipal waste incinerator so that it would fulfi l the Slovak and EU emission standards.

The winner was a consortium of Italian companies, Four Italy, followed by the creation of KOSIT company on 21 February 2001.

Figure 67: Before the reconstruction Figure 67 - Before the reconstruction

Figure 68 - After the reconstruction

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DEMO GBE Factory Project Proposal GBE Factory

GBE Factory DEMO COLLECTION

Cogeneration and co-combustion at Kosit plant

COGENERATION AND CO-COMBUSTION AT KOSIT PLANT

In Kosit as plant are operating two parallel incinerating lines (K1 e K2) - two steam boilers with In Kosit as plant are operating two parallel incinerating lines (K1 e K2) - two steam boilers natural for the for vacuum incineration grategrate typetype Dusseldorf, with a acapacity of withcirculation natural circulation the vacuum incineration Dusseldorf, with capaapproximately 80 000 t/year80 each, urban and actually alternatively. city of approximately 000 using t/year each, wastes using urban wastes operating and actually operating Kosit a.s. has applied the Integrated Pyrolysis technology thatCycle can upgrade existing alternatively.

Kosit a.s. has applied theCombined IntegratedCycle Pyrolysis Combined technology plantsthat through different fuels plants coutilization, could becoutilization, reached following: to be reduce can upgrade existing through so diffit erent fuels so it could rea- the investment, fuels and and to fuels increase the electric energy production and the ched following: to operating reduce thecosts investment, and operating costs and to increase the overall reliability ofproduction the system. integration of the pyrolysis within existing electric energy andThe the overall reliability of the system.technology The integration of the pyrolysis technology generation plants (ortothe new ones) has of theoperation, advanta- the generation plants (or thewithin new existing ones) has the advantage increase hours ge to increase hours of operation, the performances of the power section and the performances of the power section and the exhaust treatment section, so to strongly exhaust decrease the treatment section, so to strongly decrease the environmental impact of the plant.

The environmental impact of the plant. The environmental impact related to the electric energy unit is, environmental impact related to the electric energy unit is, consequently, lower than that consequently, lower than that produced by the other technologies available now. produced by the other technologies available now.

Integrated pyrolisis solution at Kosit plant

Integrated pyrolisis solution at Kosit plant

Specifications of Foreseen Goals

SPECIFICATIONS OF FORESEEN GOALS

Figura 69:69Overview plant Figura - Overviewof ofthe the plant

• 88 •

9

GBE Factory

GBE Factory DEMO COLLECTION

The main goal of the DEMO GBE Factory project is to set up a Waste to Energy System, which converts non-recyclable waste materials into electricity and heat, reducing carbon emissions by offsetting the need for energy from fossil sources, and reducing methane generation from landfills.

The heat production of incinerators reaches 12 MW in winter and about 3-4 MW in summer. Kosit currently does not exploit all the steam produced. 120 000 GJ of steam is sold to the municipal heating company, the rest is not used. The investment has the purpose to use the residual steam to generate electric energy and to produce additional steam, operating two lines simultaneously using residual biomasses and civil sludges, i.e. renewable sources.

Figure 70 - Waste to Energy Plant Diagram

A significant improvement will be reached at the level of mechanical cleaning system of the proposed solution. Silting and pollution was reduced already in the design phase adopting a solution with vertical tubes, which greatly reduces the possibility of ash deposits. A cleaning equipment to clean the ash deposits settled on the boards in the convection zone by percussion hammers will be installed. This solution allows ensuring continuous operation of the boiler for more than 8000 hours.

Exceptional maintenance (cleaning) in case of shutdown of the device can be carried out without staff having to enter into the interior of the circuit with the flue gas. The operation can be performed in the cooler shell and tube bundles (economizer) even when the boiler is in operation.

Regarding the effi ciency improvements, the existing boiler K1 has a use of thermal energy potential equal to 35%, whereas after the installation of K2 boiler, the latter will operate with 100% energy efficiency. The reconstruction and modernization of the second incineration line will increase incineration capacity from the previous 67 500 t to 135 000 t of waste per year. Disposal of these larger quantities of waste will also increase the production of heat as a by-product of the incineration plant, as it works on the principle of energy recovery from municipal waste. • 89 •

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RES proposed solutions

Brief description of technical and technological solutions The new K2 line of the KOSIT incinerator in Kosice will consist of the following components and systems: a) Waste combustion, steam and electricity production:

• combustion and steam generation system: - grid combustion system, air-cooled - power pusher - wet slag remover and slag conveyor - horizontal boiler equipped with the hammer cleaning system - ash extraction and ash conveying systems

• flue gas treatment line: - cyclone dust collectors - water cooled cooling tower - bag filter, 4-cell, individually excludable - lime and activated carbon storage and injection systems - dry fly ash extraction system and recirculation system - induced fan with silencer - SNCR DeNOx system with urea injection in the boiler • analysis and monitoring system of the flue gas in the chimney • regulated turbogenerator • thermal cycle with air separator, feed pumps, turbine bypass • water-cooled condenser and heat recovery system • evaporative cooling system

b) Control and regulation system:

• New DCS system with No. 2 operator stations and engineering workstation installed in the control room c) Electric power plant and electrical substation 5kV/22kV:

• transformer substation and PC and MCC switchboard;

• double line 22kV underground cable for connection to the electricity

distribution network d)

Auxiliary systems: • compressed air system • demineralization water circuit • plant producing hot water for district heating

DEMO GBE Factory Project Proposal 

plant producing hot water for district heating

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Current boiler

New boiler Figure 71: 71 Draw of theof plant Figure - Draw the plant

The incinerator consists of the main technological hubs, such as waste bunker for the materials brought in, steam boiler and a flue gas filter. Utility files employed are water treatment device and a rubble treatment device, with provision for separation and removal of scrap iron. The waste tank is used for storage of waste that has entered the plant and is designed to maintain depression. The air from the reservoir is sucked into the combustion chamber in order to prevent the accumulation of unpleasant smells and landfill gas. The waste stack disposes of two overhead cranes with hydraulic dredges for handling waste and scales for accurate records of the loads into the boiler. Combustion equipment consists of a cylindrical grid system “Dusseldorf” produced under license of Deuche Babcock, of feeding equipment, combustion chamber with auxiliary gas burners and a slag bunker.

The combustion chamber is a heat radiant with the walls made as membranes protected by refractory layer.

12

Figure 72 - Inceneration plant

• 91 •

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Factory DEMO COLLECTION DEMO GBEGBE Factory Project Proposal

The grate system consists of 6 cylindrical grids arranged in a 30 degree angle. Grate bars have the air gaps, through which combustion air is blown into the waste layer primarily.

This serves simultaneously as a cooling system for the grate bars. Transition bridges are Steam entering the heater's second part is cooled by an injected condensate.

Three volumes of installed between individual rollers. Still transition bridges tear off the stuck parts from evaporator are rollers. placed inThe thewaste secondispass of the and in(located the thirdon pass four volumes the revolving fed to the boiler first roller thethere top),are where it is driof water heaters (economizer).

The boiler has an automatic regulation function associated with ed and infl amed. On the reels 2 to 4 to waste is incinerated, on the fi fth and sixth it burns flue gas cleaning function. out. Slag from the last cylinder heads to a wet slag bunker. It is fi lled with water, which The heat produced in the form of slag. steam is used for own technological needs and utilized also in the quenches and transports the

Košice heating network. Fumes from the boiler are cleaned in a flue gas filter and led to the Two ignition and two stabilizing natural gas burners automatically provide the required chimney. The flue gas cleaning system is composed of 4 parallel cyclones with high efficiency for combustion temperature in the combustion chamber of the boiler. “ÈKD” steam boiler the removal of most of the airborne ash, flue gas cooler (quencher), reactor, filter bags, silos for is single-drummed, heat radiant, three-pass with natural water circulation. Steam heater lime and charcoal, recirculation of residual lime substances, end fan and a duct for evacuating is two-piece, consisting of a heat radiant part located in the first pass of the boiler, and combustion gases into chimney. convection part in the second pass.

Automatic monitoring system (AMS) Steam entering the heater’s second part is cooled by an injected condensate. Three voluCurrently running an automatic monitoring systempass (AMS) gas and fromin boilers K1. Also, for mes of evaporator are placed in the second of for theflue boiler the third passjust there cleaning gas boiler K2 andheaters the need(economizer). for monitoring The of pollutants emitted into the atmosphere, are fourflue volumes of water boiler has an automatic regulation isfunction designedassociated automatic with monitoring system (AMS).

AMS will be continuously measuring values of flue gas cleaning function. pollutant particles, NO2, SO2, CO, HCl, oxygen volume concentration and temperature. Heavy The heat produced in the form of steam is used for own technological needs and utilized metals and PCDD + PCDF (dioxins and furans) are measured at regular intervals. The analyzer will also in the Košice heating network. Fumes from the boiler are cleaned in a flue gas filter be installed in the conditioned measuring container near the sampling sites. Equipment and and led to the chimney. The flue gas cleaning system is composed of 4 parallel cyclones software emission computer provides for the collection and processing of measured data with high efficiency for the removal of most of the airborne ash, flue gas cooler (quenarchiving measurement data, measurement protocols, print reports and sending the measured cher), reactor, filter bags, silos for lime and charcoal, recirculation of residual lime subdata. stances, end fan and a duct for evacuating combustion gases into chimney.

Power capacity

Automatic monitoring system (AMS) The proposed steam generator, at the rate of 60,000 Nm3/h, flue gas temperature in the combustion chamber an more than 850monitoring ° C, the outlet of the(AMS) combustion around 1000 °K1.

C Currently running automatic system for fl chamber ue gas from boilers and to theflue fluegas gasboiler cleaning plants 250monitoring ° C will achieve the following Also,the justentrance for cleaning K2 and the about need for of pollutants emitperformance parameters: ted into the atmosphere, is designed automatic monitoring system (AMS). AMS will be continuously measuring values of pollutant particles, NO2, SO2, CO, HCl, oxygen volume - production of steam at maximal continuous filling: 29t/h, concentration and temperature. Heavy metals and PCDD + PCDF (dioxins and furans) are - steam pressure at the boiler outlet: 4.0 MPa, measured at regular intervals. The analyzer will be installed in the conditioned measuring - the temperature the steamsites. leaving the boiler: container near theofsampling Equipment o C, 390software and emission computer provides for the collection and between processing measured - working hours twoof (temporary) data archiving measurement data, measushutdowns: 8000 rement protocols, print reports and sending - production of data. electricity: 65 000 000 kWh the measured Power capacity The proposed steam generator, at the rate of 60,000 Nm3/h, fl ue gas temperature in the combustion chamber more than 850 ° C, the outlet of the combustion chamber around 1000 ° C and the entrance to the fl ue gas cleFigure 73 - Actual control room aning plants about 250 ° C will achieve the Figure 73: Actual control room • 92 •

14

DEMO GBE Factory Project P

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Figure 74 - Control room after the reconstruction

Figure 74: Control room after the reconstruction

following performance parameters: - production of steam at maximal continuous fi lling: 29t/h, - steam pressure at the boiler outlet: 4.0 MPa, Comparison of operation with best available technologies the temperature of the steam leaving the boiler: 390 oC, Applied Technology: working hours between two (temporary) BEST AVAILABLE TECHNIQUES (BAT) for the incineration of waste: shutdowns: 8000 - production of electricity: 65 000 000 kWh

-

New steam generator

-

New flue gas treatment

COMPARISON OF WITh BEST AVAILABLE TEChNOLOGIES - OPERATION New steam turbine Applied Technology:

-

Auxiliary systems

BEST AVAILABLE TECHNIQUES (BAT) for the incineration of waste: - - - -

New steam generator New fl ue gas treatment New steam turbine Auxiliary systems

• 93 •

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Applied technology is comparable theavailable best available techniques: Applied technology is comparable with with the best techniques:

Subject comparison

Technological or engineering solution

Flue gas cleaning - Semi-dry lime method neutralization

Best available technology Reasoning Semi-dry lime method

conformity with the project

Reduction of NOx - Selective non-catalytic Selective non-catalytic conformity with SNCR denitrification reduction method based reduction method based the project on urea on urea Adsorption of PCDD/F Based activated carbon and heavy metals

Based activated carbon

conformity with the project

Demineralized water

Reverse Osmosis

conformity with the project

Semi-dry lime method

conformity with the project

Reverse Osmosis

Reducing the acidic Semi-dry lime method components of the flue gas with calciumdry lime method

Part of the equipment Parameter

Best technology

available Equipment Solution

Reasoning

Separation of magnetic Yes metals

Yes

conformity with the project

Burnout in the scoria

3%

3%

conformity with the project

Burnout in fly ash

3%

3%

conformity with the project

Waste water from the No cleaning of exhaust gases

No

conformity with the project

16 • 94 •

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Identified possible suppliers: Steam turbine

Smoke purifi cation plant

Boiler

STF S.p.a.

http://www.stf.it/

FINCANTIERI S.p.a.

http://www.fi ncantieri.com/

ALSTOM Slovakia

http://www.alstom.com/

ANSALDO Caldaie S.p.a.

http://www.ansaldoboiler.it/

ČKD GROUP, a.s.

http://www.ckd.cz

ATS S.p.A Kohlbach Holding GmbH

http://www.kohlbach.at/

SES Tlmače, a.s.

http://www.ses.sk

ČKD GROUP, a.s.

http://www.ckd.cz

STAViMEX Slovakia, a. s.

http://www.stavimex.sk

Ruths S.p.a.

http://www.ruths.it/

Kohlbach Holding GmbH

http://www.kohlbach.at/

Visser & Smit Hanab GmbH

http://www.vsh-boiler.com/

SES Tlmače, a.s.

http://www.ses.sk

ANSALDO Caldaie S.p.a.

http://www.ansaldoboiler.it/

ČKD GROUP, a.s.

http://www.ckd.cz

• 95 •

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1. Project Work Plan The functional adaptation of the incinerator will be carried out in two phases as follows: a) First step: -

construction of a new boiler (K2)

-

grate system overhaul

-

a new line of flue gas treatment

-

turbine-generator and accessories for the production of

electricity Quantity of waste treated: 64,000 t/year Production of electricity: 45,000,000 kWh Figura 75 - K1 incineration line

b)

Second step (* topic not treated

in present study):

-

demolition and reconstruction of the

entire

Figura 76 - K1 incineration line

-

new combustion chamber equipped

-

with cooled water grid new boiler

-

4-stage flue gas treatment units

-

second turbine of 10 MW

-

adaptation and rationalization of existing volume

-

redevelopment of green areas and the

nocturnal lighting system

Quantity of waste treated: 105 000 t/year Production of electricity: 65 000 000 kWh

Figure 77 - New boiler (K2)

• 96 •

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Designed alternatives

Figure 78 - Designed alternatives

Figure 79 - Designed alternatives

Figure 80 - Designed alternatives

• 97 •

Activity

Demolitions

21

Gantt Chart

GBE Factory DEMO COLLECTION

DEMO GBE Factory Project Proposal

DEMO GBE Factory Project Proposal

GBE Factory

Month 1

2

3

4

5

6

7

8

9

1 0

Site preparation

Construction of a new boiler K2 Grate system overhaul Construction flue gas treatment system Steam turbine testing Boiler hydraulic testing Boiler PED inspection Steam turbine supply Steam turbine assembly High and low voltage el.iInstallations Trial operation Plant testing Put into use

• 98 •

1 1

1 2

1 3

1 4

1 5

1 6

1 7

1 8

1 9

2 0

2 1

2 2

2 3

2 4

DEMO GBE Factory Project Proposal GBE Factory

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2. Financial plan

2. Financial plan

Total amount of costs for the project has been calculated to reach an amount of 27 404 000 EUR. Total amount of costs for the project has been calculated to reach an amount of 27 404 000 EUR.

Financial calendar of the project Year

Amount in EURO

2012

13 466 750,-

2013

13 137 250,-

2014

800 000,-

Total Project Cost:

27 404 000,- EUR

Project financing is one of the key successful factors for any project. Among the standard Project financing is one of the key successful factors for any project. Among the standard resources resources of project fi nancing in Slovakia we can include:

of project financing in Slovakia we can include: • internal resources (own capital);

 internal resources (own capital); nancial leasing, etc.); • external resources (bank loan, EU funds, fi external resources (bank loan, EU funds, financial leasing, etc.); • alternative resources (venture capital, strategic partnership).  alternative resources (venture capital, strategic partnership).

In practice, most of the projects are financed by the combination of the sources mentioIn practice, most of the projects are financed by the combination of the sources mentioned above. ned above. Bank loans are often used by Slovak companies as a source of co-fi nancing of Bank loans are often usedby

by Slovak companies the projects supported European Union.as a source of co-financing of the projects

supported by European Union.

In 2011, there were 14 commercial banks and 15 branches of foreign banks, which operated in Slovak fi nancial market. Nine of them off er medium- and long-term fi nancing of conIn 2011, there were 14 commercial banks and 15 branches of foreign banks, which operated in struction, purchase, extension and reconstruction of real property. Bank loans are mostly Slovak financial market. Nine of them offer medium- and long-term financing of construction, used to funding of and asset acquisitionofrather than to direct financing of project. Innovative purchase, extension reconstruction real property. projectsBank are loans associated with risks, which have be compensating with guarantees as are mostly used to funding of assetto acquisition rather than to direct such as history of company, solvency, and project proposal. National commercial fi nancial financing of project. Innovative projects are associated with risks, which have to be compensating institutions that have experience and interest in funding EE and RES projects are: with guarantees as such as history of company, solvency, and project proposal.

National commercial financial institutions that have experience and interest in funding EE • Slovenská sporite¾òa (www.slsp.sk)

and RES projects are: • ÈSOB (www.csob.sk)

• Tatra banka, a.s. (www.tatrabanka.sk) Slovenská sporite¾òa (www.slsp.sk) • Dexia banka Slovensko (www.dexia.sk) ÈSOB (www.csob.sk) • Všeobecná úverová banka (www.vub.sk) Tatra banka, a.s. (www.tatrabanka.sk) • OTP banka (www.otp.sk)

 Dexia banka Slovensko (www.dexia.sk)

• Slovenská Záruèná a Rozvojová Banka (SZRB) (www.szrb.sk)

• Commerzbank AG (www.commerzbank.sk) Všeobecná úverová banka (www.vub.sk)

• VOLKSBANK Slovensko, a.s. (www.luba.sk) – from 15 February 2013 Sberbank SloOTP banka (www.otp.sk) vensko (www.sberbank.sk)

 Slovenská Záruèná a Rozvojová Banka (SZRB) (www.szrb.sk) 23 • 99 •

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Documents required by the banks for project evaluation are mostly following: • business plan stating the project description and location; • overall project cost budget; • project realization schedule; • information about the permissions - planning permit, building permit, • information about building contractor, • ownership title and cadastral map, • expert’s opinion (in the event of existing real property), • information about project yields, • information about costs of real property operation,

DEMO GBE Factory Project Proposal

• client’s participation in the total project costs (the amount of own resources).

Figure 81 Selected sources of financing in Slovakia Figure 81: Selected sources of -project financing in project Slovakia

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GBE Factory DEMO COLLECTION

Opportunity for project funding On top of the conventional international grants and subsidies, alternative support mechanisms are required to reduce the investment risks and thus the threshold for entering the Slovak market: • tax and policy incentives by Slovak authorities: energy taxation and environmental legislation; DEMO GBE Factory Project Proposal

• support funds and semi-commercial credit supply by (e.g. soft loans) by local organizations; (e.g. Slovak Environmental Fund).

The Ministry of Environment of the Slovak Republic allows drawing financial assistance from EU The Ministry of Environment of the Slovak Republic allows drawing fi nancial assistance funds for the period 2007-2013 within the Operational Programme Environment: from EU funds for the period 2007-2013 within the Operational Programme Environment:  Priority Axis 4 – Waste management projects; • Priority Axis 4 – Waste management projects;  Operational objective 4.2 – Support of waste recovery activities; • Operational objective 4.2 – Support of waste recovery activities;  Activity group IV – Energy recovery from waste; • Activity group IV – Energy recovery from waste;  A. Projects aimed at construction of facilities for energy recovery.

• A. Projects aimed at construction of facilities for energy recovery.

The EEA Financial Mechanism and Norwegian Financial Mechanism represent the contriThe EEA Financial Mechanism and Norwegian Financial Mechanism represent the contribution of bution of the donor states, i.e. Norway, Iceland and Lichtenstein to several member states the donor states, i.e. Norway, Iceland and Lichtenstein to several member states of the European of the European Union. The contribution to the Slovak Republic is more than EUR 80 milUnion. The contribution to the Slovak Republic is more than EUR 80 million for the period 2009 – lion for the period 2009 – 2014 and is divided into nine programs. One of them supports 2014 and is divided into nine programs. One of them supports the Green Industry Innovation. the Green Industry Innovation.

Despite difficult market conditions and outdated technology making the transition to difficult market conditions and outdated technology making the transitioneven to Green Green Despite economy onerous, KOSIT decided to invest in the modernization without economy onerous, KOSIT decided to invest in the modernization even without obtaining EU of obtaining EU funding. The fact will affect only the return of the investment. In the case funding. The fact will affect only the return of the investment. In the case of acquisition of the acquisition of the grant the payback period of the project will be about 5,5 years, othergrant the payback period of the project will be about 5,5 years, otherwise the payback period will wise the payback willwhich be extended upa to years, financial which still represents a very be extended up period to 8,7 years, still represents very8,7 impressive indicator. impressive financial indicator.

Lifetime of the plant:

30 years

Revenues:

4 000 000,- EUR / year

Sale of electricity

Savings:

600 000,-

Electricity savings High maintenance costs

Internal Rate of Return:

15 years

Pay-Back Period of Project:

8,7 years

Financing of energy projects will increasingly require the involvement of commercial inFinancing of energy projects will increasingly require the involvement of commercial investors. In vestors.

In addition to governmental grants and locallike support like tax addition to governmental grants and subsidies, local subsidies, support measures tax and measures policy and policy incentives will be needed in order to lower incentives will be needed in order to lower investment risks. investment risks.

Proposed Financing Proposed FinancingOption Option Shareholders (15%) 3 518 000,- EUR Shareholders (15%) 3 518 000,- EUR Loan (85%) 23 500 000,- EUR (VÚB Banka) KOSIT a.s.

386 000,- EUR Loan (85%) 23 500 000,- EUR (VÚB Banka) KOSIT a.s.

386 000,- EUR • 101 •

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Annex I. Fundamental waste management legislation in the Slovak Republic • Act of the National Council of SR No 223/2001 Coll. on waste and on amendments of certain acts as amended by subsequent regulations; • Act of the National Council of SR No 17/2004 Coll. on charges for waste landfilling in the wording of the Act No 587/2004 Coll. and Act No 515/2008 Coll.; • Act of the National Council of SR No. 119/2010 Coll. on packages; • Decree of MoE SR No 283/2001 Coll. on implementation of certain provisions of the Act on wastes as amended by subsequent regulations; • Decree of MoE SR No 284/2001 Coll. on establishing the Waste Catalogue as amended by subsequent regulations; • Decree of the MoE No 315/2010 Coll. on electrical and electronic equipment (EEE) and waste electrical and electronic equipment management (WEEE); • Decree of the MoE No 125/2004 Coll. setting the details of end of life vehicles (ELV) processing and some requirements for vehicle production in the wording of Decree of the MoE No 227/2007 Coll. and Decree of the MoE No 203/2010 Coll.; • Decree of MoE SR No 126/2004 Coll. on authorization, on issuing of expert opinions in issues of wastes, on authorization of persons authorized to issue expert opinions and on verifying of professional competence of such persons in the wording of the Decree of MoE SR No 209/2005 Coll.; • Decree of the MoE SR No 127/2004 Coll. on charges calculation for contributions to the Recycling Fund, on the list of products, materials and equipment for which contribution to the Recycling Fund must be paid, and on the details concerning application for provision of the means from the Recycling Fund in the wording of the Decree of the MoE SR No 359/2005 Coll.

• 102 •

• 103 •

• 104 •

germany

• 105 •

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DEMO GBEFACTORY J. Schmalz GmbH (Glatten - Germany) 1. BACKGROUND AND RATIONALE FOR THE PROPOSED PROJECT “DEMO GBEFACTORY” The aim of the GBE FACTORY project is to promote and spread the use of renewable energy sources in order to produce electricity and heat in renovated or newly built industrial or commercial buildings.

Throughout the project, some cases have been collected and described (exemplary cases and reference cases). They are renewable energy plants already implemented in different industrial and commercial fields that could be an example to other businesses wishing to adopt these technologies. Among these, it’s important to highlight a GBE FACTORY DEMO proposal of an industrial building that uses, as much as possible, renewable resources to produce energy and it is a replicable model all over Europe.

In Germany, the project partner Italian Chamber of Commerce for Germany capitalizes the experiences of the project and proceed to identify a case which aims to become a significant GBE FACTORY DEMO in Germany.

The identified industrial site is that of J. Schmalz GmbH. Schmalz is a positive energy company. This means that the company produces more electricity and heat from regenerative, renewable energy sources than is consumed by all operations. This is achieved on the one hand by a continuous, consumptionbased expansion of plants dedicated to renewable energy production. On the other hand, Schmalz takes innovative measures to reduce the energyconsumption during operations.

Figure 82 - J. Schmalz GmbH Headquarters

The measures implemented by Schmalz in the areas of environmental protection and resource efficiency are explained on the Schmalz eco-discovery trail. Every year, several groups of interested visitors are guided through the eco-discovery trail – Schmalz hereby intends to motivate others to emulate its example. Schmalz considers sustainability a holistic system consisting of economic success, ecological responsibility, and social commitment. For this purpose, the company combines its various measures in the Schmalz ecoSYSTEM. It represents long-term stability, resource-efficient products and processes, as well as fair play towards customers, employees, suppliers, and the organization.

In addition to the buildings realized to date, Schmalz is currently planning the construction of two further buildings which are to run on 100% self-generated, renewable energy. The objective is therefore to integrate - with a project proposal - the use of renewable energy created by the company for the operation of the two company buildings due to be built.

• 106 •

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In this way Schmalz becomes a GBE FACTORY DEMO since it provides: • • • •

the generation of both electricity and heat through renewable sources the exploitation of diversified sources to produce renewable energy the use, within the company, of the renewably produced energy the production of more renewable energy compared to how much the company needs

2. DETAILED DESCRIPTION OF PLANT FORESEEN: BUILDINGS, HOSTED PROCESSES AND ENERGY REQUIREMENTS J. Schmalz GmbH is headquartered in Glatten, Germany and was founded in 1910 by Johannes Schmalz. Today the third entrepreneur generation is managing the company: the founder`s grandsons Dr. Kurt Schmalz and Wolfgang Schmalz. Schmalz is one of the worldwide leading providers of automation, handling and clamping systems, providing customers in numerous industries with innovative, efficient solutions based on vacuum technology. Schmalz products are used in a wide variety of production processes – for example, as grippers on robot arms in the production of car bodies, in CNC machining centers as clamping solutions for furniture pieces, or used by an operator to lift items ranging from boxes to solar modules. Schmalz customers can either choose from a diverse line of components or they can benefit from a complete solution that is custom-tailored to their requirements. Schmalz is dedicated to its customers, providing groundbreaking innovation, exceptional quality and comprehensive consultancy. The company is headquartered in Glatten (Black Forest region of Germany) and is active in 15 additional countries with their own subsidiaries. Schmalz employs a total of around 750 persons worldwide.

The Schmalz company has been collecting experience in the sustainable use of natural resources for three generations. The use of renewable energy was a permanent part of the company philosophy right from the early years. Schmalz increased its investments in sustainable energy generation proportionally to its energy requirements. Today Schmalz is a Positive Energy Company, generating more energy from renewable resources than it consumes. This commitment has already been awarded multiple times.

The premises include approximately 29,500 square meters of available surface. All buildings on the premises of the J. Schmalz GmbH are incorporated into an energy network.

In this way, all further buildings, such as the objects currently under construction, are incorporated into the energy network. Thereby, the philosophy and permanent objective of the company are to save energy or to additionally produce renewable energy, with the result that Schmalz is able to boast a positive electricity and heat balance over the long term. A case in point is the most recent example – the production building, which has been in use since 2009. The move into the new building resulted in the merging of all production and assembly areas into one single area. All materials administration and logistics were reorganized and optimized by means of this measure. The energy demand of the building lies approximately 57 percent below the value of the German Energy Saving Regulation (EnEV).

• 107 •

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Ecological features of the production building • Gravel base under the new building consists of locally cut and crushed sandstone • A rainwater cistern of 320 m³ supplies the sanitary facilities as well as the outdoor irrigation and the operation of car wash stations • North-light saw-tooth roof for optimum lighting conditions and for heat protection in summer • North-light saw-tooth roof serves as sub-construction for photovoltaic modules with an additional performance of 259 kWp (performance of the entire company-owned photovoltaic power plant: 533 kWp) • Compensatory measures against surface sealing by means of our own flood retention basin upstream of the hydropower pond as well as an infiltration trench alongside the hall road • Braking energy of the automatic small parts store is fed back into the electricity grid • Hall lighting has a daylight detection control and is dimmed automatically (including DALI bus technology) with high-efficient bulbs • All-over underfloor heating, provided by in-house woodchip heating system • Heat use of the manufacturing plants as well as the used air of the hall and controlled supply to the heating system by means of an efficient rotary heat exchanger in the ventilation facilities during winter • Reduced air pollution and little heat transfer due to central exhaust ventilation in the machines as well as two ventilation facilities in summer • Automated louver windows for natural nighttime ventilation and cooling in summer • Roofed recycling area with 11 container sites for the separation of recyclable material (99 % recycling rate)

Figure 83 - J. Schmalz GmbH Headquarters

• 108 •

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Electricity and heat balance The electricity and heat balance shows a comparison of the production of renewable energy and energy demand. Over a long-term view of five years the balance reveals a positive result.

Figure 84 - Electricity and heat balance 2008 -2012

Energy self-sufficiency The supply of electricity and heat to the Schmalz company comes directly from their own energy sources whenever technically possible and economically reasonable. As the supply of electricity from renewable energies rarely corresponds to the electricity demand, a part of the self-generated electricity is fed into the public network. For this purpose, Schmalz has been cooperating with the electric company Elektrizitätswerke Schönau, a multiple-award winning supplier of pure CO2-free green energy.

Schmalz has the features to be a GBE Factory DEMO because: • Schmalz creates ecological compensatory measures whenever technically possible and economically reasonable – despite strong business growth which makes the construction of new buildings inevitable • Schmalz does not only focus on the production of regenerative energies but saves on resources wherever possible • Schmalz serves as an exemplary role model and enables the public to inform itself on the measures • 109 •

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• Schmalz allows to exploit the large surfaces of buildings to produce electricity or hot water from the sun • Schmalz produces more renewable energy compared to how much the company needs, in order to run the entire production platform Project Proposal: Construction of 2 new company buildings in 2013-2015 and incorporation into an already existing energy network The Schmalz company has grown continuously during the past years. In order to cope with this growth, J. Schmalz GmbH intends to invest in the construction of further buildings in the coming years: an office building as a research and testing center and a reception building as a communication center for visitors and employees.

Even during project planning, ecological issues play a major role. On the one hand, possibilities to expand the renewable energy sources are consistently used. At the same time, the energy saving potential is fully taken into account during the planning stage and other ecological compensatory measures are implemented.

Energy network on the premises All buildings on the premises of the J. Schmalz GmbH are incorporated into an energy network. It therefore seems appropriate to integrate all further buildings, such as the objects planned, into the energy network.

1 2 3 4 5 6 7 8 9 10 11 12 13

Water power plant with electric gas station for vehicles from the car pool, of employees, or the public Circular route of the Schmalz eco-discovery trail Near-natural habitat with inlet-structure into water power plant Rainwater retention basin Wood chip heating system for heat supply via the district heating network Wind power plants (3 and 26 km away) Photovoltaic plants for electricity generation Machine hall ventilation with heat recovery system North-light saw-tooth roof for reduction of thermal load Solar plant for hot water generation Parking lots with honeycomb-type paving stone to avoid surface sealing Cisterns for rainwater exploitation Greening of rooftops

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3. FORESEEN GOALS IN TERM OF RES AND ENERGY SAVING WITH THE “DEMO GBEFACTORY“ AND ADVANCEMENT BEYOND THE STATE OF THE ART Information about the new buildings Office building B2 Research and test center Construction costs: approx. € 4 mln.

Commencement of construction: March 2013 Move-in: February 2014 Area: 2,916 m2 gross floor space Figure 85 - J. Schmalz GmbH Headquarters

• Three office floors, each with 580 m2 • Ground floor for fair store and logistics as well as for long-term testing and advance development, with a total of approx. 830 m2 • Space for 120 new office desks in the areas of research & development, construction and distribution Ecological measures • Central mechanical ventilation facility with heat recovery and cooling or preheating of the supply air via the transmission through a rock cavity, as well as C02-air sensor • Automatically controlled air-supply windows on all office floors for natural nighttime circulation and temperature reduction in thermal mass in offices in summer • Greening of rooftops for good climatic conditions, rainwater harvesting and microbiology, as well as roof-terrace for employees to use during breaks • Intelligent area illumination with motion detectors and daylight sensors • GPS-controlled external sun protection

Figure 86 - Heat generation

• Sheet plate front with a small ecological footprint, high recycling rate and incorporated sun protection • Installation of raised-floor system on the office floors • Higher insulation standards • 111 •

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Below the threshold value set by ENEV by 32% Reception building A3 Communication center for visitors and employees Construction costs: approx. € 6.3 mln.

Commencement of construction: October 2013 Move-in: February 2015 Area: 2,150 m2 gross floor space Ground floor: reception area, conference room, technical rooms, warehouse and coldstorage cells for the kitchen, dressing room for kitchen staff 1st floor: staff, applicants center, customer area with conference rooms and small exhibition area / hospitality area 2nd floor: company restaurant with bistro café and winter garden, terrace, kitchen with adjoining rooms, roofed walkway to the production facility.

Ecological measures • Cooling by means of water from the Glatt (adjacent small river) • Three ventilation facilities with heat recovery and demand-oriented regulation (e. g. CO2-sensor, motion detectors) • Connection to the district heating network of the in-house wood chip heating system • Underfloor heating system on the ground floor • Pipes in the ceiling of the dining area in the company restaurant as well as the office rooms are used for cooling and minor heating (thermal component activation) • External sun protection, optimized via daylight simulation • PV modules on the walkway, shading elements on the side of the building and roof with an estimated 30 kW performance • Use of demolition waste of the old buildings as ballast bed • Triple glazing and high insulation standard of the building, optimized by means of thermal building simulation as well as thermal bridging calculation • Use of the thermal discharge of the kitchen and cold-storage cells to feed into the heating system • Consideration of construction materials with ecological demands • Use of high-efficiency motors in ventilation, heating pumps and direct-drive cable elevators • Building will be equipped with energy saving LED lighting, including motion regulation and daylight control. High level of natural light due to additional courtyards and extensive glazing of the facade Below the threshold value set by ENEV by at least 36%.

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4. BENEFITS FOR THE INVESTOR FROM THE GBEFACTORY AND POSITIVE ENVIRONMENTAL IMPACTS “As we do not think in quarters but rather on a long-term basis, our business strategy intends for economic, ecological and social sustainability to complement each other. This allows us to fund our growth ourselves, to secure jobs on a long-term basis, and to actively assume responsibility for our social and ecological obligations”, say the managing partners Dr Kurt Schmalz and Wolfgang Schmalz.

For many years, all investments have been consistently carried out in terms of sustainability. In this context, awareness of the finitude of fossil raw materials and the necessity to reduce CO2 plays a decisive role. This way, an extensive network of renewable energy providers has been created in the past years. Today, the Schmalz company produces more energy than it consumes and therefore constitutes a positive energy company. Furthermore, resource efficiency and environmental protection determine the company’s daily conduct. A whole package of innovative measures relating to human resources and welfare matters make the Schmalz company one of the most attractive employers in Germany.

The Schmalz company’s motivation goes way beyond merely adhering to legal standards or gaining competitive advantages. It is marked by an ethical and moral obligation to keep the company’s ecological footprint as small as possible. At the same time, it attests to the assumption of responsibility for future generations. Schmalz demonstrates how a production plant can operate sustainably and inspires others to emulate its example.

Positive environmental impacts As a manufacturing company, the Schmalz objective is to minimize the environmental impact of its business activity. In this context, the company places great emphasis on reducing its own CO2 footprint.

In this area, Schmalz is setting new standards for the manufacturing industry. Through the consumption of renewably generated internal and external energy, a large part of the energy consumed remains CO2-neutral. Only the fuel and heating oil applied additionally emitted 93 tonnes of CO2 in total in 2012. At the same time, the wind and photovoltaic energy units not consumed by the company prevented CO2 emissions amounting to 1,870 t, which otherwise would have developed from conventional electricity production.

Altogether, Schmalz generated a CO2 net credit in 2012 and relieved the burden on the environment by preventing the emission of 1,277 t of the damaging greenhouse gas.

By means of the planned extensions described in the proposal above, this positive balance will be further developed in the future.

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5. EXHAUSTIVE DESCRIPTION OF USED REGENERATIVE PLANTS AND PROPOSED SOLUTIONS As a positive energy company. Schmalz relies on manifold measures for the generation of renewable energy. The following sources for energy generation are already being used or are to be expanded in the coming years:

Figure 87 - Wind power plants

5.1 Wind Energy Generation Wind power plants: Two plants with nominal capacity: 2,100 kW Energy yield per year (2012): 2,700,000 kWh Usage since 1999 Pay-off period: > 10 years Reduction of CO2 emissions: approx. 1,823 t per year.

Schmalz operates two wind power plants: One in Glatten (3 km from the premises of the company), a further one in Dunningen (26 km from the company’s premises). The energy generated by the wind power plants is fed into the public electricity supply network.

5.2 Solar Energy Generation Photovoltaic power plants: Nominal capacity: 533 kW Energy yield per year (2012): 576,000 kWh Usage since 2005 (extension in 2009, 2010, and 2011) Pay-off period: 8-10 years Reduction of CO2 emissions: approx. 385 t per year The photovoltaic power plants are mounted on the roofs of the company building. The Figure 88 - Photovoltaic power plants plants with a total of 2,187 polycrystalline and monocrystalline PV modules occupy an area of 3,800 m2. Solar thermal installations on the roofs of the company’s premises, with an annual gain of approx. 11,000 kWh, support the water heating.

5.3 Hydropower Generation

Figure 89 - Hydroelectric power plant

Hydroelectric power plant: Nominal capacity: 32 kW Energy yield per year (2012): 123,000 kWh Usage of hydropower since 1910 Reduction of CO2 emissions: approx. 86 t per year When Johannes Schmalz came to Glatten in 1910 and founded the company, he was dependent on the water wheel of the mill. He used • 114 •

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it to operate his machines via transmissions. Although the municipality of Glatten had already been connected to the electric power supply, Johannes Schmalz in 1922 replaced the old mill wheel with two Francis turbines and thus opened the chapter of renewable electricity generation through Schmalz.

5.4 Heat generation by means of renewable raw materials Wood chip heating system: Nominal capacity: 500 kW Energy yield per years (2012): 1,303,000 kWh Usage of wood chips since 1986 Pay-off period: 8-10 years Reduction of CO2 emissions: approx. 348 t In 2007, the wood chip heating system was replaced by a plant that was significantly more Figure 90 - Heat generation efficient with 500 kW of nominal capacity. To date it supplies all premises via a district heating network. The untreated natural wood required for the plant originates from thinning and from forestry in local woodland.

5.5 Energy saving measures and safeguarding resources Schmalz contributes to low energy consumption with the following measures for reducing electricity usage: • The braking energy of the stacker cranes of the automated small parts store is recovered and re-used • Circuits not in use are switched off at night and at weekends • Lighting is regulated in office and production buildings according to daylight detection control • Energy-saving lights are utilized universally • Only particularly efficient and energy-saving computers, monitors, and peripheral devices are selected • The company-wide compressed air supply is fed by frequency-controlled compressors and monitored by regulation software. The compressed air level was lowered by 1 bar.

Schmalz obtains heat mainly from the company-owned wood chip heating system. Here, too, reduction in consumption is a top priority, and for this purpose, various measures were also implemented: • The IT server room is cooled with the help of sprinkler water. The heated water is stored in the sprinkler basin. The heat is withdrawn from the water by means of a thermal heat pump and returned to the heating system at a higher temperature; it is also used for process heat.

• The waste heat of compressors is led to the heating distribution system and the washing plant via a heat exchanger. The heat of the hall’s waste air is also recovered via a rotating air-to-air heat exchanger and fed into to the hall’s supply air.

• A free outside air cooling system mostly helped to avoid the fitting of air conditioning systems. In this way, the buildings are mainly cooled at night by automated • 115 •

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louver and roof windows, as well as supply air fans in the halls. An exhaust ventilation that is mounted centrally onto the machine tools makes for a low air pollution and heat input during summer.

• In the manufacturing building and in areas of the office buildings a low-temperature heating is in use.

• The large 40,000 liters buffer storage of the wood chip heating system helps to store the heat for a long period, thereby reducing the required cycles of operation of the heating plant and increasing its efficiency.

• The overall energy performance of the approx. 14,000 m2 manufacturing and logistics building is around 57 % lower than the value set by the German Energy Saving Regulation.

• The central control of the heating, ventilation, and cooling ensures an optimal adjustment between the plants.

• The north-light saw-tooth roofs on the manufacturing building and the office buildings ensure optimal lighting conditions while simultaneously serving as heat protection in summer. They also form the sub-construction of a photovoltaic power plant.

Load management Schmalz has been using a load management system since 2012. It optimally regulates the electricity demand in order to avoid expensive power peaks, and to level electricity consumption. The load management system ensures an automated cut-off of electric loads that are not necessarily required in the current course of operations as soon as there are signs of a load peak.

5.6 Planned measures of the new buildings (project proposal)

Figure 91 - New building project proposal

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5.6.1 Office buildings B2 Research and test center Move-in beginning February 2014 The following energy strategy for the new building is being planned or proposed: Heating • Connection to the wood chip district heating network - optimal primary energy factors • Underfloor heating on level 0 with low temperature • Triple glazing on glass facade and windows • High insulation standard for the building (16 cm facade as well as roof) Cooling / Ventilation • Preconditioned supply air of the ventilation plant via rock cavity on the building – preheated in winter and cooled in summer • CO2 sensor for ventilation control as well as forced ventilation function – demand-oriented – therefore less dry air in winter as well as reduced consumption of electricity and increased service life of filters and wear parts • External sun protection on all windows with insolation in order to decrease solar radiation and heating of the office rooms in summer as much as possible • Ventilation system with high degree of heat recovery and high-efficiency motors • By means of efficient control systems and natural preventive measures (shading, efficient lighting and computers, high insulation standard, triple glazing, northfacing orientation, nightly ventilation) it is possible to do without a refrigerating machine or technical cooling while maintaining a high level of comfort in summer • Nightly ventilation function of the office ventilation plant in order to cool the rooms at night and to activate the storage mass of the building and the facility.

Illumination / daylight • Generous all-around window hinge on the office floors for high daylight factor • Daylight-controlled illumination – optimized area illumination by means of Dali control system (corridor areas / traffic zones with lower lux value) as well as control of the open-plan office illumination in particular zones via large number of motion detectors • Currently checking the economic viability of an LED panel light versus prism light versus specular louver luminaire Rainwater harvesting • Connection of building to integrated network, rainwater cistern for toilet flushing Other • Extensive greening of rooftops for further good climatic conditions, rainwater retention and microbiology • Below the threshold value • 117 •

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• Cable elevator instead of hydraulic elevator with direct drive - optional with energy recovery system, activation of LED illumination only in case of elevator request • Well insulated, high-speed gate in order to decrease energy loss Construction materials • Sheet plate front with a small ecological footprint and high recycling rate • Extensive greening of rooftops • triple glazing • Mineral wool / stone lamellar instead of polystyrene 5.6.2 Reception building Communication center for visitors and employees Move-in beginning in 2015 The following energy strategy for the new building is being planned or proposed: Heating • Connection to the wood chip district heating network - optimal primary energy factors • Underfloor heating on the ground floor with low temperature – convenient reception area and conference room • triple glazing on the facade – optimized by means of thermal building simulation • High insulation standard, roof with 20 cm insulation • Trench heater on 1st and 2nd floor to optimize the room climate in the facade area.

Cooling/Ventilation • Decreasing the cooling performance for rooms through prevention • CO2 sensor to regulate ventilation and hence cooling • External sun protection - optimization by means of daylight simulation as well as thermal building simulation – partially horizontal shading of the Southern facade by means of planned canopy or also horizontal shading components by means of photovoltaic modules • Cooling via adiabatic ventilation plant for kitchen as well as creek water harvesting in the power house of the hydropower plant for activation of thermal mass in dining area of the office area in 1st floor and underfloor heating on ground floor, if applicable • Ventilation system with high degree of heat recovery and high-efficiency motors • Louver ventilation windows, lateral in the facades as well as in the atriums for controlled natural night ventilation, mechanic night ventilation function in the company restaurant for activation of thermal masses of the building and cooling of the rooms at night • Control of ventilation systems (e. g. conference and meeting rooms), demanddriven via key button request as well as CO2-controlled flow rate control • 118 •

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Illumination/Daylight • High transparency and percentage of glass surfaces of the building with 2 additional central atria for high daylight factor in the building – optimization of the building by means of daylight simulation • Daylight-controlled illumination - in individual offices, floor luminaires with motion detectors and daylight sensor • Implementation of energy-efficient LED technology with demand-oriented activation (motion detectors) Use of rainwater and drinking water • Connection of building to integrated network, rainwater cistern for toilet flushing • Dishwasher with 2-chamber system and automatic water-saving Other • Photovoltaic modules as roof and shading of the walkway from C4-A3, roof area of the reception building covered with PV modules, as well as horizontal shading components with PV modules on the side wall of the building • Currently checking extensive greening of rooftops on “free” panel for good climatic conditions, additional rainwater harvesting and microbiology – yet problematic due to PV plant • Revolving door at reception for reduction of heat loss and draft • Thermal bridge calculation in case of with critical structural elements • Cable elevator instead of hydraulic elevator with direct drive - optional with energy recovery system, activation of LED illumination only in case of elevator request • Currently below the threshold value set by ENEV by 36 % with the objective of further optimizing the building • Activation of heating and refrigerating plants that are able to bridge short failures (e. g. cold storage cells kitchen, dishwashers) on a central load management system for electricity peak decrease Construction materials • Partial use of wooden surfaces indoors with room acoustic effect • Optimized use of material through Finite Element Method during planning of the supporting structure • Demolition waste (concrete, brick, masonry) of the existing buildings of the onsite facilities shredded and used as foundation of the building – high degree of recycling and re-use of the demolition waste • triple glazing of the glass facade

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AUSTRIA

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CONSTRUCTION OF A LARGE SCALE SOLAR THERMAL PLANT - FOR HEATING OF CRUDE OIL TANKS INTEGRATED INTO THE NETWORK OF A COMBINED HEAT AND POWER PLANT PROJECT PROPOSAL AND FEASIBILITY STUDY 1. Background Description of GBE FACTORY Projects The project owner of the planned RES project is a mineral oil & natural gas corporation in Austria. Its core areas of business are oil and natural gas exploration and production, and oil and gas storage. Through its own storage capacity and its role as an operator, it plays an important part in the security of oil and gas supply for Austria and Central Europe. Its activities also include crude oil stockpiling, natural gas trading and transportation, and renewable energy projects.

The GBE FACTORY demo plant investor operates a CHP plant, for covering its own electricity demand. The generated heat is used to heat up their oil, to keep it at 30°C and for feeding into the nearby district heating grid. The district heating grid is connected to priGBE Factory 5 DEMO GBE Factory Project Proposal vate households and commercial and industrial enterprises.

3 oil storage tanks with each 60,000 m³

Production area, administration; technical office, etc.

CHP plant

empty tank, 60,000 m³ Figure 92: situation – Energy flow diagram Figure 92Current - Current situation – Energy flow diagram

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The proposed investment project in Austria has significant potential to be realized as a DEMO GBE Factory for following reasons:

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The proposed investment project in Austria has significant potential to be realized as a DEMO GBE Factory for following reasons: - High replication factor; in Europe exist a lot of industries like this example, which have a lot of heating demand for storing mineral oil - Because of the huge energy demand for heating, a big portion of alternative solar energy can be used - Integration of a large scale seasonal storage enables a high innovative and smart combination between different energy producers and energy consumers

2. DEMO GBE FACTORY Project Description 2.1. OVERVIEW OF THE GBE FACTORY PROJECT

The crude oil & gas corporation owns a gas-powered combined heat and power plant with 3 pcs. of gas engines, each has a capacity of 800 MW. The heat capacity of the CHP is 6 MW. Most of the by the CHP generated electricity is used for their own electricity grid with aGBE totalFactory demand of approx. 14.3 GWh/year. The generated heat will5 be used to Factory feed Project Prop DEMO GBE into the local heating grid on the one hand and to heat up 3 oil tanks with a capacity of 60,000 m³ each up to 30°C.

heating grid on the one hand and to heat up 3 oil tanks with a capacity of 60,000 m³ each to 30°C.

Figure 93: Energy flow chart – Current situation Figure 93 - Energy flow chart - Current situation

• Details to heat energy demands -• 123 which are essential for the integration of the solar pla and the heating generation pls. Can be found in the table below:

Figure 93: Energy flow chart – Current situation GBE Factory

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Details to heat energy demands - which are essential for the integration of the solar plant to heat generation energy demands which essential fortable the integration - andDetails the heating pls. -Can beare found in the below: of the solar plant and the heating generation pls. Can be found in the table below: Energy demand [MWh] Energy production [MWh] Month District Heating Grid Oil tanks Other TOTAL - Energy Demand CHP Gas boiler Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2,800 2,200 2,000 1,000 900 600 500 550 600 1,100 1,300 2,200 15,750

1,100 950 1,000 680 250 150 100 100 100 280 900 900 6,510

350 270 220 170 100 100 80 100 100 160 300 320 2,270

4,250 3,420 3,220 1,850 1,250 850 680 750 800 1,540 2,500 3,420 24,530

2,950 2,520 2,320 1,850 1,250 850 680 750 800 1,520 2,500 3,040 21,030

1,300 900 900

400 3,500

Table 14: Energy demand and production – Current situation

In the future, a solar thermal plant with a capacity of approx. 7 MW should be installed. One In the a solar thermal withstorage, a capacity approx.

7 MW be installed. oilfuture, tank should be rebuilt to aplant seasonal whichofallows to store theshould solar energy and One surplus oil tankheat should beCHP rebuilt a seasonal storage, store the solar of the plantto during the summer and which to use itallows in the to winter months.

Thisenergy oil and surplus heat of the CHP plant during the summer and to use it in the winter months. tank actually is not in operation and is empty. The 3 oil tanks will be heated with the solar This thermal oil tankplant actually notsummer in operation duringisthe months.and is empty. The 3 oil tanks will be heated with GBE Factory 5 DEMO GBE Factory Project Proposal the solar thermal plant during the summer months.

4

Figure 94 - Energy demand and production – Future situation Figure 94: Energy demand and production – Future situation

This concept will lead to high natural gas savings (the CHP plant operation hour are more independent, due to the available solar thermal plant´s heat). The seasonal storage This concept will lead to high natural gas savings (the CHP plant operation hour are more makes a highly efficiency operation of the CHP plant and solar plant possible. independent, due to the available solar thermal plant´s heat). The seasonal storage makes a highly efficiency operation of the CHP plant and solar plant possible.

Key data of solar thermal project: Expected Solar yield:

5,051 MWH/year

Key data of solar thermal project:

Expected investment:

3,000,000 EUR

National subsidies for investment: 40 % Expected Solar yield:

5,051 MWH/year

Expected pay-back period: 3,000,000 6.1EUR years Expected investment: National subsidies for investment: 40 % Expected pay-back period:

6.1 years

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2.2. System configuration and energy flows including a solar system integration Based on a substitution due to the inefficient existing gas boiler and the current overall summer heating demand, the collector field was dimensioned to a size of 10,000 m². It is planned to install the collector field in the south-east of the production area.

Figure 95 - Proposed collector field

Calculation of the solar thermal plant´s solar yield: The annual solar radiation profile will lead to a clear energy peak in summertime and reduced energy gains in wintertime.

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Figure 96 - Solar energy yields over a whole year

The given numbers below are based on solar calculations made by a skilled expert. The radiation data have been taken out of the database of the software “Meteonorm”. SOLID integrates these radiation data in an own developed calculation tool which is considering the following main core parameters: • • • • • • •

Location for radiation data Austria Inclination collectors: 45° Azimuth: 0° Collector mean temperature: 40 °C Distance between collector rows: 4.5 m (energy losses from shading is 2.2 %) Losses in solar loop: 10 % Losses in the distribution system: 5 %

Based on the above mentioned input parameters, SOLID expects that this system will deliver annual energy gains in a range of: 505 kWh per m².

For the proposed collector field of 10,000 m² this leads to annual energy gains of approx.

5,050 MWh.

Figure 97 - Energy distribution including solar plant

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The delivered solar energy will be either used directly for heating up the oil tanks or will be used for charging the storage tank, depending on different energy demands. In addition, the solar plant enables the company to sell more heating energy to the districting heating grid up to a total maximum of 18,000 MWh. The figure below shows the scenario of the heating energy flows after the solar plant and the seasonal storage tank have been installed.

GBE Factory 5 DEMO GBE Factory Project Proposal Energy demand [MWh]

Energy production [MWh]

Energy Management CHP tank charging for Additional CHP heating up directly Energy TOTAL Storage heat demand Energy Charging and the oil Oil Solar District producing amount in Temperature District Heating Grid heating grid tanks Gas boiler plant tanks Demand CHP discharging tank in the tank heat [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] Month [MWh] [MWh] Other [MWh] Heat Losses [MWh] [MWh] [°C] [MWh] [MWh] Jan 2,800 1,100 170 13 4,083 3,090 161 -939 0 3,090 416 35 Feb 2,200 0 950 100 3 3,253 2,890 212 -738 420 2,470 94 40 Mar 2,000 250 1,000 100 0 3,350 2,949 427 -573 479 2,470 0 46 Apr 1,000 680 80 1,760 1,303 547 -133 133 1,170 0 54 May 900 250 100 11 1,261 1,000 622 372 0 1,000 361 62 Jun 600 150 100 24 874 700 573 423 0 700 760 71 Jul 500 100 140 41 781 580 718 618 0 580 1,336 75 Aug 550 100 250 57 957 650 666 566 0 650 1,846 67 Sep 600 0 100 290 77 1,067 1,000 516 416 300 700 2,485 55 Oct 1,100 650 280 290 86 2,406 2,190 370 90 300 1,890 2,789 41 Nov 1,300 900 900 270 68 3,438 2,700 140 -760 250 2,450 2,210 36 Dec 2,200 450 900 220 42 3,812 2,940 100 -800 0 2,940 1,368 35 15,750 2,250 6,510 2,110 423 27,043 21,992 5,051 -1,459 1,882 20,110 13,665 616

Table 15: Energy management including the integration of the solar plant

Table 15 - Energy management including the integration of the solar plant

Due to the solar plant and the storage tank, following operating modes are expected, depending on a year´s seasons: All year round, the solar plant is primarily heating up the oil tanks directly. From May until August, there is a surplus of solar energy, so the storage tank will be charged by the solar plant in these months.

9 From September until October there is still more solar heat available so the storage tank will still be charged by the solar plant but additionally the CHP plant also feeds in some heating energy into the storage tank for the winter time when there is a huge district heating demand.

It is also expected that in autumn the electricity price will be quite high. The seasonal storage tank allows CHP operators to produce electricity although there is not enough district heating demand. This is a very high benefit which is unfortunately very difficult to include into economic analyses as nobody knows the daily electricity prices in the next 10 years.

From November until January, most of the heating energy needed will be taken out of the storage tank.

From February until April, some energy for heating up the oil tanks will be taken out of the tank and the CHP will be charging the storage tank.

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2.3. Description of the collector field The SOLID gluatmugl solar collector is a state-of-the-art collector, specifically designed to achieve maximum efficiency in large-scale solar cooling systems and will be used for this project. These large-area solar panels are widely employed in industrial solar plants in mature solar markets in Europe. With a gross area of 12.5 m², the SOLID gluatmugl collector represents the best-engineered panel for large-scale plants.

Advantages of large-area collectors (12.5 sqm) over a standard 2 sqm collector: Assembly work: With a crane it’s possible to mount 500 to 800m² large scale collector in a single day.

Better performance: Only the active component of the collector, the absorption plate, absorbs the solar radiation. The bigger the collector, the bigger is the share of this net absorption area compared with the total collector area; this means that large-area collectors have 90-93% of net absorption area instead of the usual 80% by smaller collector sizes. To summarize: in terms of energy output, large-area collectors have a 10-13% advantage over small-area collectors, only due to their geometrical form.

Less connections and piping: Due to the size of each collector module, the number of connections between the collector modules - which need to be installed and insulated.

Special connections within the collectors reduce the diameter of the piping, which results in less energy losses and less mounting costs.

Better flow properties: The internal connection of the collectors in combination with the special design ensures an optimal flow distribution through all components, which is almost impossible with small size collectors. Only an optimal flow distribution allows taking advantage of the maximum incoming energy from the sun.

Less effort for splices: Large-area collector modules result in a reduced number of collectors, and this means less splices and therefore screw-points into the building and lower mounting costs.

Flat plate collectors are much more space-efficient than evacuated tube collectors, as well as far more proven in larger installations (allowing the SOLID energy output guarantee). Energy conversion efficiency is typically 3-5 times greater than photovoltaic solar electric systems. For hot water loads, large-scale flat plate collectors provide the maximum energy output per square meter of roof space and have the lowest number of roofpenetrations or – in other words – have the smallest need for additional roof works on the building.

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cooperation. As substructure for the collector field, ground anchoring bolts will be used.

Examples of ground anchoring bolts can be seen in the figure below:

Figure 98 - Ground anchoring bolts as substructure for ground mounted collectors

Figure 99 - Example of a ground mounted collector field; Meat factory Berger in Austria; 1067 m²

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2.4. SOLID remote monitoring and control system

Figure 100 - Screenshot of online visualization of a solar cooling plant by SOLID

As a sample of a more complex installation, the screenshot above shows a Large Scale Solar installation serving three different consumers, including a Solar driven Absorption Chiller for the air conditioning system: SOLID’s control system is always: • automatically sending the solar thermal energy to the best-suited load and therefore maximizes energy gains (if a number of potential loads are available) • accessible via the Internet. This allows tele-monitoring as well as tele-support. It increases performance and energy gains post-installation during a commissioning period, adjusting parameters in response to the actual performance of the system over the first operating season. SOLID includes a one-year period of tele monitoring by its headquarters for free in this budgetary proposal. Remote monitoring and operation by SOLID is optional after this time.

• recording all relevant sensor data and energy gains.

A sample of browser based visualizations can be seen under the following link: http://uwc.heizwerk.at/ email: frei, pwd: frei, This system is situated in a university campus in Singapore. It delivers cooling energy and hot water.

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3. DEMO GBE FACTORY PROJECT Benefits The general benefit of the GBE FACTORY for the user will be savings of natural gas, more independent operation of the CHP plant (heat available from the solar thermal plant) and a highly efficiency operation of the solar thermal and CHP plant in combination with the seasonal storage tank (100 % use of surplus heat -> possible use shift to winter months).

Below you can find an overview of the benefits of this demo plant: a) Solar plant produces free heat b) The CHP produce valuable electricity _> earn money c) The CHP enables a fast capacity regulation on the production side _> earn money d) The seasonal storage enables a lot of flexibility in operating the CHP plant and makes the combination of these technologies possible The clients can also use the solar plant to improve their social and environmental responsibility image. The plant can be opened for visitors; this will help to promote renewable energy projects and gain trust and confidence in green technologies. It will trigger and raise awareness of clean sustainable energy at commercial scales.

A similar, already existing RES system is operating in Denmark, where the heat is used for low temperature district heating in combination with heat pumps and other RES energy sources (“Masterplan Denmark”).

Below some more general benefits due to the installation of a large scale solar plant: • Energy solution with a minimum of maintenance work • Greater independence from conventional energy sources • Stable energy prices for the next 25 years • Annual energy (electricity, fuel oil) savings due to the solar system • High profitable demonstration project for the oil producing industry • Reduction of carbon emissions

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4. Economy - Payback time & cash flow For calculating the economics of this demo project, only the solar plant and its solar yield and costs were considered.

To calculate the economic benefits of the storage tank, more detailed information like forecasts about the daily electricity rates in the next years have to be considered. Furthermore, the whole storage management will be simulated in the near future, but according to the timeline of the GBE project it is not possible to include this simulation now.

In the economic calculation below, it is assumed that the whole solar yield could be used for feeding into the district heating grid. For the energy cost savings, the tariff for the district heating grid was considered.

Input parameters • Total system price for the solar plant: 3,000,000 Euro • Electricity costs: 10 EUR/MWh • Electricity demand Solar 1 % of solar yield • Tariff, district heating: 45 EUR/MWh • Cost increase electricity/district heating: 6 % • Loan financed: 100 % • Interest rate for loan: 5 % • Loan period: 10 years • Consumer price index: 3 % • National subsidy: 40 % of the investment National grants are available for the project: The funding program “Solar Thermal – Large-scale solar plants” of the Austrian climate fund: It will promote the design and construction of innovative solar systems and system integration in four areas: 1. Solar process heat for manufacturing plants 2. Solar feed-in grid-connected heat supply systems (micro-networks, local and district heating networks) 3. High solar fraction (over 20% of the total heat demand) in commercial and service enterprises 4. Solar-assisted air-conditioning plants and its combination with solar hot water heating and cooling demand during periods without heating demand 5. NEW!!: New technologies and approaches will be promoted for plants with 50 – 250 m² (max. 50.000 €) The subsidy rate in all four subject areas is max. 40% of the environmentally relevant additional needed invest (compared to conventional energy sources) plus any surcharges • 132 •

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(+5% for SME, +5% for appraised innovative projects). Solar cooling systems are funded on the same terms as the solar thermal part of the plant. Funding is provided through non-repayable investment grants. The call is open until 27 September 2013, the Procurement Guidelines can be found under following link: http://www.klimafonds.gv.at/foerderungen/aktuelle-foerderungen/2013/solarthermie-solare-grossanlagen-4-as/ Results • Total payback period 6.1 years • Total cost savings after 20 years: 6,130,140 EUR • IRR after 10 years: 23 % • IRR after 20 years: 32.5 %

Figure 101 - Economic outputs

5. Project work plan Work plan & Possible grants The DEMO GBE FACTORY is in an early stage of realization. At the moment, following GBE Factory 5 DEMO GBE Factory Project Proposal work plan is available: 2013 Month

June

July

Aug.

Sept.

2014 Oct.

Nov.

Dec.

Pre-Feasibility Detailed Feasibility contract negotiation Engineering phase Construction phase Monitoring & Controlling

Table workplan planschedule schedule Table 16: 16 - Project Project work

• 133 •

Jan.

Feb.

March

April

2015 May

June

July

Jan.

Feb.

March

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5 DEMO GBE Factory Project Proposal

GBE Factory

6. Supply chain of large scale solar thermal plants

GBE Factory DEMO COLLECTION

6. Supply chain of large scale solar thermal plants The proposed supply chain refers to the realisation of large scale solar thermal plants in

The proposed supply chain realisation large scale solar thermal in Austria and is a result of refers 20 yearstoofthe experience in thisoffield.

Solar energy doesn´t needplants a feed of row materials, to other bio doesn´t gas, woodneed a Austriaconstant and is a result of 20 years compared of experience in RES thistechnologies field. Solar(e.g.: energy chips boiler) and has nearly no moving parts (only water pumps).

This results in a verygas, low wood constant feed of row materials, compared to other RES technologies (e.g.: bio maintenance effort and excludes any higher economic risk through increasing row chips boiler) and has nearly no moving parts (only water pumps). This results in a very material/transport costs. low maintenance effort and excludes any higher economic risk through increasing row material/transport costs.

Figure 102 - Supply chain for large thermal Figure 102: Supply chain for large scalescale solar solar thermal plantsplants

Step Description Step Description Pre Feasibilty 1

1

-

Feasibility Detailed

2

3

Pre

Company Company

2

Detailed

Engineering Feasibility & construction

S.O.L.I.D. Gesellschaft für Solarinstallation und Design mbH S.O.L.I.D. Gesellschaft

Contact person Contact Johannes person Luttenberger

Website

Website

www.solid.at

Johannes für Solarinstallation Luttenberger S.O.L.I.D. Johannes undGesellschaft Design mbHfür Luttenberger

www.solid.at

S.O.L.I.D. Gesellschaft Johannes S.O.L.I.D. Johannes für Solarinstallation Luttenberger Gesellschaft für Luttenberger undSolarinstallation Design mbH

www.solid.at

Solarinstallation und Design mbH

www.solid.at

www.solid.at

und Design mbH

Financing ESCO Provider 4

Monitoring & Controlling

Raiffeisen Bank International AG

Marcus Offenhuber

solarnahwaerme.at Energiecontracting GmbH

Dr. Christian Holter

S.O.L.I.D. Gesellschaft für Solarinstallation und Design mbH

Johannes Luttenberger

Table 17 - List of stakeholders in the DEMO GBE FACTORY for Austria

• 134 •

www.rbinternational.com 18 office@solarnahwaerme.at www.solid.at

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7. Risk analysis 7.1 POSSIBLE RISKS • Construction risk (capital cost overrun); • Operational risk - lower solar yields • Grand risk - possible breakdown of the national grand CAPITAL COST OVERRUN The total price of the solar thermal plant is calculated on the basis of benchmark prices/ experience values. Possible reasons for underestimation of the price are: • Long time range from offer to the contract, price increase of building materials • Cost of integration of the solar system to the existing system are higher • Bankruptcy of the supplier The results of the sensitivity analysis in case of 20 % increase of the total project costs are: • Total payback period:

8.6 years

• Total cost savings after 20 years: 5,713,442 EUR • IRR after 10 years: • IRR GBE Factory

21,2 %

after 20 years:

23,8 %

5 DEMO GBE Factory Project Proposal

Economic Parameters

EUR 7,000,000

25% Annual net cost savings

6,000,000 20%

5,000,000

Payback

4,000,000 15%

3,000,000 2,000,000

10%

1,000,000 0 -1,000,000

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20

-2,000,000

5%

Loan End Balance

Cumulated savings

IRR

0%

Figure outputs- -risk riskanalysis: analysis: capital overrun Figure103: 103 -Economic Economic outputs capital costcost overrun

As aa result resultofofthe the above-mentioned assumption, IRR decreases after 20 by years byto8.7 % above-mentioned assumption, IRR decreases after 20 years 8.7 % 23.8 to 23.8 %, the total cost savings after 20 years also decreases by EUR 416,698, and the %, the total cost savings after 20 years also decreases by EUR 416,698, and the payback payback period is 8.6 years. period is 8.6 years.

Operational risk - lower solar yields In general, this risk is very small, since the•solar 135 • yield calculation is based on detailed tools and programs. However, through mistakes in the engineering phase and damages at the hardware lower solar yields can occur. For the analysis we calculate with a decrease of 16%

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Operational risk - lower solar yields In general, this risk is very small, since the solar yield calculation is based on detailed tools and programs. However, through mistakes in the engineering phase and damages at the hardware lower solar yields can occur. For the analysis we calculate with a decrease of 16% of the solar yield, which leads to 423.7 kWh/m²/year. This is a reduction of 81,3 kWh/ m²/year.

The results of the sensitivity analysis in case of 16 % decrease of the solar yields are: • Total payback period 8.4 years • Total cost savings after 20 years: 4,882,623 EUR • IRR after 10 years: 10,8 % • IRR after 20 years: 24,5 %

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5 DEMO GBE Factory Project Proposal

Economic Parameters

EUR 6,000,000

30%

5,000,000

25%

4,000,000

Annual net cost savings Payback

20%

3,000,000

Loan End Balance

2,000,000

15%

1,000,000

10%

Cumulated savings

0 1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20

-1,000,000

-2,000,000

5%

IRR

0%

Figure outputs- -risk riskanalysis: analysis: lower solar yields Figure104: 104 -Economic Economic outputs lower solar yields

As a result of the above-mentioned assumption, IRR decreases after 20 years by 8.0 % to 24.5

As a result thesavings above-mentioned assumption, IRR decreases after 20and years 8.0 % %, the totalof cost after 20 years also decreases

by EUR 1,247,517, theby payback to 24.5is%, total cost savings after 20 years also decreases by EUR 1,247,517, and the period 8.4the years. payback period is 8.4 years.

Grand risk - possible breakdown of the national grand In Austria, 40% of the total investment are available as national grants. Through a possible financial crisis of the state, as well known from other countries in Europe, the scenario of 0% grand will be considered.

The results of the sensitivity analysis in case of 0 % national grand are:  

• 136 •

Total payback period 11.3 years Total cost savings after 20 4,741,142 EUR

years:

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Grand risk - possible breakdown of the national grand In Austria, 40% of the total investment are available as national grants. Through a possible financial crisis of the state, as well known from other countries in Europe, the scenario of 0% grand will be considered.

The results of the sensitivity analysis in case of 0 % national grand are: • Total payback period 11.3 years • Total cost savings after 20 years: 4,741,142 EUR • IRR after 10 years: - 8.8 % • IRR after 20 years: 14.0 %

GBE Factory

5 DEMO GBE Factory Project Proposal

Economic Parameters

EUR 6,000,000

16%

5,000,000

14%

Annual net cost savings

12%

Payback

4,000,000 3,000,000

10%

2,000,000

Loan End Balance

8%

1,000,000

6%

0 -1,000,000

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20

Cumulated savings

4% IRR

-2,000,000

2%

-3,000,000

0%

Figure outputs- -risk riskanalysis: analysis: grand available Figure105: 105 -Economic Economic outputs no no grand available

As a result of the above-mentioned assumption, IRR decreases after 20 years by 18.5 % to 14

The result the savings worst case that IRR decreases after 20 and years bypayback 25.3 % %, the totalofcost afterscenario 20 yearsshow also decreases

by EUR 1,388,998, the to 7.2%, the total cost savings after 20 years also decreases by EUR 3,331,017, and the period is 11.3 years. payback period is 14.4 years.

7.2

WORST CASE SCENARIO

This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario, capital cost overruns by 20%, solar yields decrease by 16% and no national grand will be available.

The results of the worst case scenario are:   

• 137 •

Total payback period 14.4 years Total cost savings after 20 years: 2,799,123 EUR IRR after 10 years: n.a. - no positive

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7.2 WORST CASE SCENARIO This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario, capital cost overruns by 20%, solar yields decrease by 16% and no national grand will be available.

The results of the worst case scenario are: • Total payback period 14.4 years • Total cost savings after 20 years: 2,799,123 EUR • IRR after 10 years: n.a. - no positive cash flow • IRR GBE Factory

after 20 years: 7.2 %

5 DEMO GBE Factory Project Proposal

Economic Parameters

EUR 6,000,000

16%

5,000,000

14%

Annual net cost savings

12%

Payback

4,000,000 3,000,000

10%

2,000,000

Loan End Balance

8%

1,000,000

6%

0 -1,000,000

1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20

Cumulated savings

4% IRR

-2,000,000

2%

-3,000,000

0%

Figure outputs- -risk riskanalysis: analysis: grand available Figure105: 105 -Economic Economic outputs no no grand available

The the above-mentioned worst case scenario show that decreases 20 years by % 25.3 % As a result result of the assumption, IRRIRR decreases afterafter 20 years by 18.5 to 14 %, 7.2 the %, total after 20after years20also decreases

by EUR 1,388,998, and the payback to thecost totalsavings cost savings years also decreases

by EUR 3,331,017, and the period is 11.3 years. payback period is 14.4 years.

7.2

WORST CASE SCENARIO

This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario, capital cost overruns by 20%, solar yields decrease by 16% and no national grand will be available.

The results of the worst case scenario are:  

Total payback period 14.4 years Total cost savings after 20 years: • 138 •2,799,123 EUR IRR after 10 years: n.a. - no positive

 cash flow

ion with use of surplus GBE Factory

GBE Factory DEMO COLLECTION

ConSTRUCTION of LARGe scale solar thermal plant for heating and cooling of office buildings in combination with use of surplus heat

ility study for an ESCO

Project proposal and feasibility study for an ESCO company Background Description of GBE FACTORY Project

The building owner of Project the planned RES project is a company specialized on engine engiBE FACTORY

neering and operates their own motor power testing stations. The company has several office buildings on their company area, get cooled and heat by an internal cold and heat grid. specialized on engine engineering and company

sa The conventional energy office supply isbuildings an urban district heating grid and gas boiler for the s. The company has several on their heat and conventional electric chillers for the cold supply. The motor power tel cold andneeded heat grid. sting stations need to be cooled and give off the heat to the environment (surplus heat).

An ESCO company will install a large scale solar thermal plant on two buildings of the

rict heating grid and andwill gas for exchanger the needed company alsoboiler install heat in the heat motor power testing station system pply. Theformotor power need toheat be will cover parts of the existing a possible use of testing the surplusstations heat. The generated heat and cold (via an absorption chiller) loads of the internal grids. surplus heat).

The proposed investment project in Austria has significant thermal plant on two buildings of the company and potential to be realized as a DEMO GBE Factory for following reasons: wer testing station system for a possible use of the - Common of office buildings can be supplied via solar thermal ts of the existing heatenergy and demand cold (via an absorption energy

- The surplus heat use gives the project a high standard in the field of energy efficiency (motto: energy saving before additional energy supply).

- One by one GBE business model

significant potential to be sons:

dings can be supplied via

high standard in the field g before additional energy

• 139 •

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DEMO GBE FACTORY Project Description Overview of GBE factory project The ESCO company “solar.nahwaerme.at” (WG 3 member) is specialized on large solar thermal projects with different applications (heating, hot water, district heating, process heat, solar cooling). An in Austria located client has a high demand on heating and cooling (office buildings & halls for motor power testing stations).

Figure 107 - Conventional energy supply of the client (heat & cold)

SOLID (PP4) and solar.nahwaerme.at worked out together a proposal for the installation of a solar thermal plant combined with the use of the produced heat via the motor power testing stations (surplus heat). The generated heat will be used for heating and cooling (absorption chiller) purposes.

• 140 •

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5 DEMO GBE Factory Project Proposal

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Figure 107 - Conventional energy supply of the client (heat & cold)

Figure 108: Future energy supply - including the RES & surplus heat generation

Details to the current energy demand and future RES energy production can you find in Details to the current energy demand and future RES energy production can you find in the table the table below:

below:

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Gas 706 715 615 226 42 51 19 22 118 455 729 1,055 4,753.75

Energy demand [MWH] RES energy production [MWh] District Heat Total Heat Total Cooling Solar Heating Surplus Heat Solar Cooling 70 775 170 24 118 71 786 170 56 118 61 676 170 107 118 22 249 170 139 118 4 46 220 184 118 179 5 56 250 189 118 176 2 21 275 207 118 213 2 25 260 175 118 188 12 129 170 111 118 70 45 500 170 73 118 72 802 170 35 118 104 1,160 170 18 118 470.15 5,223.90 2,368.00 1,319.17 1,415.00 825.80

Table 18: 18 - Current Current energy versus future RESRES production Table energydemand demand versus future production

• 141 •

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The planned solar thermal plant has a capacity of 2.3 MW and operates in combination with an absorption chiller of 1 MW. The surplus heat potential is very constant through the year and is estimated with 118 MWh per month. The interface between the different heat sources (solar, surplus heat, conventional energy supply) is a heat storage, which allows an energy management during the day and weekend.

First priority of the plant is to cover the heat demand (lower temperatures -> higher solar yields). During the summer months mainly the absorption chiller will be in operation. With this concept high energy coverage of heat (35%) and cold (30%) are possible.

At the moment the current heat supply is done with 91% by gas. The planned concept will lead to high natural gas savings.

The ESCo principle is based on the model “shared savings”:

Figure 109 - ESCO principle

• 142 •

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Solar.nahwaerme.at will be responsible for the financing and project development including the project management. Additonal services and components will be supplied via subcontracting companies:

Figure 110 - ESCO Project Management Model

Key data of solar thermal project: Solar collector area:

3304 m²

Absorption chiller capacity:

1 MW

Expected solar yield:

1,319 MWh/year

Expected surplus heat potential:

1,415 MWh/year

Expected investment:

2,350,000 EUR

National subsidies for investment: 45 % Expected pay-back period:

6.1 years

• 143 •

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System configuration and energy flows including solar system integration Based on the current energy demand and consideration of the surplus heat potential, the collector field was dimensioned to a size of 3,304 m². The collector area will be installed on two roofs, one directly on roof and another one on a steel construction (canopy of a parking level).

Figuer 111 - Planned steel construction of the parking level for collector mounting

Figure 112 - Second roof with directly on roof mounted collectors

• 144 •

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Calculation of the solar yield of the solar thermal plant: The annual solar radiation profile will lead to a clear energy peak in summertime and reduced energy gains in wintertime.

Figure 113 - Solar energy yields over a whole year

The given numbers below shall be understood as a solar calculation of a skilled expert.

The radiation data have been taken out of the database of the software “Meteonorm”.

SOLID integrates these radiation data in an own developed calculation tool which is considering following main core parameters: • Location for radiation data:

Austria

• Inclination collectors:

30°

• Azimuth:

0°

• Collector mean temperature:

50 - 62 °C

• Losses in solar loop:

10 %

• Losses in the distribution system: 10 %

Based on the above mentioned input parameters SOLID expect that this system will deliver annual energy gains in a range of: 400 kWh per m².

For the proposed collector field of 3,304 m² this leads to annual energy gains of approx.

1,319 MWh.

• 145 •

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Figure 114 - Energy distribution versus energy demand

Due to the solar plant and the surplus heat following operating modes, depending on the seasons over the year will be expected: From April till September the solar plant will cover 100 % of the needed heat demand.

From September till April approx. 20% of the heat demand can be covered.

From May till August the absorption chiller can cover 100 % of the needed cold demand.

In April and September approx. 15% of the cold demand can be covered via the absorption chiller.

From October till April the absorption chiller is not in operation. During this period the cold demand will be covered via the conventional cooling system.

• 146 •

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Description of collector field The used high temperature solar flat plate collector is a state-of-the-art collector specifically designed to achieve maximum efficiency in large-scale solar plants and will be used for this project. These large-area solar panels are widely employed in industrial solar plants in mature solar markets in Europe. With a gross area of approx. 12.5 m², the collector represents the best-engineered panel for large-scale plants.

Advantages of large-area collectors (12.5 sqm) over a standard 2 sqm collector: Assembly work: With a crane it’s possible to mount 500 to 800m² large scale collector in a single day.

Better performance: Only the active component of the collector, the absorption plate, absorbs the solar radiation. The bigger the collector, the bigger is the share of this net absorption area compared with the total collector area; this means that large-area collectors have 90-93% of net absorption area instead of the usual 80% by smaller collector sizes. To summarize: in terms of energy output, large-area collectors have a 10-13% advantage over small-area collectors, only due to their geometrical form.

Less connections and piping: Due to the size of each collector module, the number of connections between the collector modules - which need to be installed and insulated decreases. Special connections within the collectors reduce the diameter of the piping, which results in less energy losses and less mounting costs.

Better flow properties The internal connection of the collectors in combination with the special design ensures an optimal flow distribution through all components, which is almost impossible with small size collectors. Only an optimal flow distribution allows taking advantage of the maximum incoming energy from the sun.

Less effort for splices: Large-area collector modules result in a reduced number of collectors, and this means less splices and therefore screw-points into the building and lower mounting costs.

Flat plate collectors are much more space-efficient than evacuated tube collectors, as well as far more proven in larger installations. Energy conversion efficiency is typically 3-5 times greater than photovoltaic solar electric systems. For hot water loads, large-scale flat plate collectors provide the maximum energy output per square meter of roof space and have the lowest number of roof-penetrations or – in other words – have the smallest need for additional roof works on the building.

The collectors shall be mounted on two roofs on the premises of the client. On one roof the collectors will directly mount on the flat roof structure, on the other roof a steel con• 147 •

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GBE Factory DEMO COLLECTION

struction will be mount to canopy the parking level area. Examples of on roof/steel structure mounted collectors can you see in the figures below:

Figure 114 - Energy distribution versus energy demand

Figure 116 - On steel substructure mounted collectors for canopy different areas (source: www.solid.at)

Figure117 - Example of on roof collector mounting system (source: www.solid.at)

Figure 118 - Example of on roof collector mounting system (source: www.solid.at)

• 148 •

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Description of the absorption chiller - solar thermal cooling The peak demand of cooling load is at the same time when the sun generates the most energy. It is very economical to cover this large energy consumption partly by solar energy. The chiller will be an absorption chiller, which have longer operating time, less maintenance, less energy consumption and no noise exposure as compared with conventional compressor chillers.

The solar energy is used to heat up water. For this purpose cool water flows through the solar collectors, which heat it up; after passing the collectors, the hot water is stored in an energy buffer tank at the needed temperature level. This system uses the solar storage tank to achieve a thermal peak demand management.

In case there is not enough available solar radiation for heating up the cold water until the needed temperature, the surplus heat can further heat up the water in order to meet the temperature requirements of the client. If no solar heat and surplus heat are available, the already existing backup system will supply the system with cold water.

For the cooling process, an absorption chiller works with hot water on a basis of a special physical absorption process. The more solar energy is available, the higher the output of the machine will be. This is an important point compared to conventional electrical systems ; common electrical system can only switch on and off on their maximum power (“clocking” operation mode). This operation mode reduces their service life and technical reliability. The experience shows that the solar cooling chillers have a power output up to 20% higher compared to their nominal power. How the absorption chiller is working can be seen in the figure below:

Figure 119 - Working principle of an absorption chiller

• 149 •

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SOLID remote monitoring and control system

Figure 120 - Screenshot of online visualization of a solar cooling plant by SOLID

The screenshot above shows a Large Scale Solar installation serving three different consumers, including a Solar driven Absorption Chiller for the air conditioning system: SOLID’s control system is always: • Automatically sending the solar thermal energy to the best-suited load and therefore maximizes energy gains (if a number of potential loads are available) • Accessible via the internet. This allows tele-monitoring as well as tele-support. It increases performance and energy gains post-installation during a commissioning period, adjusting parameters in response to the actual performance of the system over the first operating season.

• SOLID includes a one-year period of tele monitoring by its headquarters for free in this budgetary proposal. Remote monitoring and operation by SOLID is optional after this time.

Recording all relevant sensor data and energy gains.

• 150 •

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DEMO GBE FACTORY PROJECT Benefits The general benefit of the GBE FACTORY for the user will be savings of natural gas and up to 80% of electricity compared to the conventional cooling system (including the recooling system). Additional the generation of available surplus heat increase the operation time/coverage of the whole system. Below you can find an overview of the benefits of this demo plant: a) Solar plant produces low cost heat & cold over 25 years b) The surplus heat generation supports the energy efficiency and is total integrated into the planned RES plant -> increase operation hours/ energy coverage.

The client can also use the solar plant to improve their social and environmental responsibility image. The plant can be open for visitors; this will help to promote renewable energy projects and gain trust and confidence in green technologies. It will trigger and raise awareness of clean sustainable energy at commercial scale.

Below some more general benefits due to the installation of a large scale solar plant: • Energy solution with a minimum of maintenance work • Greater independence from conventional energy sources • Stable energy prices for the next 25 years • Annual energy (electricity, gas, district heat) savings due to solar system • High profitable demonstration project for industries with high cold and heat demand including surplus heat potential.

• Reduction of carbon emissions

• 151 •

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Economy - Payback time & cash flow The calculation of economics of this demo project is based on the investment costs for the solar plant, solar cooling technologies and surplus heat generation part versus the sold heat and cold demand.

Input parameters • Total system price: 2,350,000 Euro • Electricity costs: 12 EUR/MWh • Electricity demand Solar heat 1 % of solar yield • Electricity demand Solar cooling 10 % of cold yield • Tariff heat: 54 EUR/MWh • Tariff cold: 78 EUR/MWh • Cost increase conv. energy: 3 % • Loan financing: 0 % • Equity financing: 100% • Consumer price index: 3 % • National subsidy: 45 % of the investment For the project are national grants available: The funding program “Solar Thermal – Large-scale solar plants” of the Austrian climate fund: It will promote the design and construction of innovative solar systems and integration into the system in four areas: 6. Solar process heat for manufacturing plants 7. Solar feed-in grid-connected heat supply systems (micro-networks, local and district heating networks) 8. High solar fraction (over 20% of the total heat demand) in commercial and service enterprises 9. Solar-assisted air-conditioning plants and its combination with solar hot water heating and cooling demand during periods without heating demand 10. NEW!!: New technologies and approaches will be promoted for plants with 50 – 250 m² (max. 50.000 €) The subsidy rate in all four subject areas is max. 40% of the environmentally relevant additional needed invest (compared to conventional energy sources) plus any surcharges (+5% for SME, +5% for appraised innovative projects). Solar cooling systems are funded on the same terms as the solar thermal part of the plant. Funding is provided through non-repayable investment grants.

The call is open until 27 September 2013, the Procurement Guidelines can be found under following link: http://www.klimafonds.gv.at/foerderungen/aktuelle-foerderungen/2013/solarthermiesolare-grossanlagen-4-as/ • 152 •

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5 DEMO GBE Factory Project Proposal

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GBE Factory DEMO COLLECTION

Results Results  • Total payback period 5.7 years 

Total payback period 5.7 years Total cost savings after 20 • Total cost savings after 20 years: 4,371,272 EUR EUR 4,371,272  • IRR after 15 years: 16.4 % IRR after 15 years: 16.4 %  • IRR after 20 years: 22.3 % IRR after 20 years: 22.3 %

years:

Figure 121 - Economic outputs

Figure 121: Economic outputs

Project work plan

Project work plan Work plan & Possible Work plan & Possible grants grants The DEMO GBE FACTORY is in an high stage of the realization. At the moment following work plant is The DEMO GBE FACTORY is in an high stage of the realization. At the moment following available: work plant is available: 2013 Month

June

July

Aug.

Sept.

2014 Oct.

Nov.

Dec.

Jan.

Feb.

March

April

2015 May

June

July

Jan.

Feb.

March

Pre-Feasibility Detailed Feasibility contract negotiation Engineering phase Construction phase Monitoring & Controlling

Table workplan plan schedule Table 19: 19 - Project Project work schedule

• 153 •

39