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Territory Development Agency

Clean space "Production of organic fertilizer and biogas from biomass aquatic organisms"

 

The project essence

Elimination of the global ecological problem of water bodies: the blue-green algae, sludge. Achieve clean river water. Improvement of the ecosystem around cities and villages. Environmentally friendly agricultural production. Restoring of the regions tourist attraction. Electric power out of renewable resources.


For sale:

Environmentally friendly agro products.

Electricity according to the "Green Tariff" of Ukraine.

Organic fertilizers all over the world.

Franchise. For all interested companies in the world.

The project advantages:

  •  -Ecology.
  •  -Renewable energy.
  • -Organic fertilizers with no heavy metals in their compound.
  • -Suspension of the outflow of labor resources.
  • -Block production development.

Will be used for the production:

  • - The Elizarovs’ scientific developments in blue-green algae recycling.
  • - Modern innovative technologies for the production of the new generation organic fertilizers.
  • - Biogas plants.
  • - Trigeneration of plants, use of biogas.
  • - Solar power stations and solar thermal collectors.
  • - River fleet.
  • - Machinery for agro-industry.
  • - Greenhouses.
  • - Land for agricultural production.

 
The project social importance

I. Decrease in the dominance of the blue-green algae in the Dnieper basin ecosystem (the Kremenchuk reservoir)

II. Generating energy from renewable energy sources.

III. Development of the riverine regions infrastructure.

IV. Creation of additional jobs with European income level.

V. Increase in the degree of food security of regions.

VI. Participation in the improvement of the diet of the population of the country.

VII. Improvement of ecological situation in the regions.

VIII. Increase of incomes of the state and territorial communities

 (at the expense of additional tax revenues).

IX. Development and support of scientific works in the field of renewable energy and ecology.

X. Restoration of river fish stocks.

XI. Attraction of local and foreign capital for the development of river basin regions. 

 
Utilization process stage 

Stage 1: Harvesting of blue-green algae biomass in the water reservoir and its transportation to the industrial site. 

Stage 2: Loading of collected raw materials into methane tanks and their enrichment.  

Stage 3: Physic-biological processing of enriched blue-green algae biomass in reactors - methane tanks.

 
Processing stage

Stage 4: 

4.1. Accumulation of released methane in gasholders. 

4.2. Removal of a substrate for the production of organic fertilizers from methane tanks to dryers.
 


Stage 5: Obtaining organic fertilizers of new generation:

5.1 Separation of organic substrate into solid and liquid fractions in aero tanks.

5.2. Conducting spectral analysis for the percentage of active components: N, P, K.

5.3. Inclusion to organic fertilizer biological products - microelements and cultures of soil bacteria.

 
Stage 6: Release of gasholders (injection of biogas into balloons)

Stage 7:  Methane combustion in a trigeneration plant: generating electricity, hot and cold water. 

Stage 8: Obtaining electricity from renewable energy sources (solar power, biogas burning)

Stage 9: Selling:

- Electricity according to the "Green Tariff".

- Organic fertilizers of new generation.

- The project franchises.

Stage 10: Optimization of the process of methane-genesis in the blue-green algae clusters. Search for other types of raw materials for renewable energy


Main stages of the project

Stage 1. Drawing up a technical assignment for the design of a biological station

Drawing up a TA (technical assignment) for the design of a biological station, which includes:

  •  - Choice of a water body for biomass harvesting;
  •  - Choice of construction site for production and laboratories;
  •  - Selection of the type of sewage systems;
  •  - Selection of modular buildings with the calculation of all communications;
  •  - Selection of process equipment;
  •  - Selection of laboratory equipment;
  •  - Selection of auto, water and auxiliary transport.

 Stage 2. Organization of production

 Organization of production includes:

  •  - Design work;
  •  - Coordination of design estimates;
  •  - Conclusion of a land and water resource lease agreement;
  •  - Purchase and installation of an antiseptic and sewage system;
  •  - Purchase and installation of production and laboratory modules;
  •  - Construction of a pier;
  •  - Construction of storage tanks;
  •  - Construction of methane tanks;
  •  - Purchase and installation of solar panels and means of reversal of DC to AC for supply to the power line to the consumer; 
  •  - Purchase and installation of process equipment;
  •  - Purchase and installation of greenhouses;
  •  - Purchase of office and laboratory equipment;
  •  - Purchase of auto, water and auxiliary transport;
  •  - Fencing and organization of protection of industrial territory;
  •  - Selection and training of staff.

Stage 3. Energy autonomy
The project's energy logistics presupposes the existence of an external power supply (or its own power generator) at the station construction stage, and then its use only as a backup power source. The operation of the station will be based on the use of electricity produced autonomously from renewable energy sources - solar and biogas combustion. Due to this, it is proposed to create an autonomous system of power supply for production at the expense of trigeneration and a solar power station.


Stage 4. Provision of drinking, technical, cold, and hot water

  •  - Create an autonomous technical, cold, hot water supply using trigeneration.
  •  - Ensure the purification of water to the state of drinking water with the help of bacteria, aquatic flora and fauna and filtration devices.

Stage 5. 

Strategic positioning

In our opinion, the solution of this problem will cause us considerable interest among the world community, especially countries aggravated by environmental problems and experiencing a shortage of fresh water due to contamination and depletion of water bodies.

The increase in the share of organic fertilizers in agricultural production, obtained by recycling blue-green algae, will, on the one hand, support soil fertility, and on the other - reduce the consumption of energy generated by non-renewable sources of hydrogen in the production of mineral fertilizers.  

Products with an environmental logo will allow people to become our allies in the struggle to improve the Dnieper and other rivers, which will result in:

  •  - Reduction of the cost of water treatment supplied to the population by urban water supply systems;
  •  - Increase in the attractiveness of coastal areas as recreation areas (beaches, holiday homes, sports water bases, boat stations, water tourism, etc.);
  •  - increased productivity of fishery.

The products will take their rightful niche among consumers.

Price policy 

The company sets prices based on the current situation and guided by the principles of competitiveness and availability of products to potential buyers.  Thanks to effective mechanisms for promoting the goods on the market, including dispatch of free samples of products and establishment of a flexible system of discounts, customers realize that they receive high quality products at a relatively low price.

The price niche is considered as above average.

Distributors are provided with discounts of 20% of the cost of goods.

Wholesale buyers receive the right to bonuses and additional gifts within 10% of the purchase amount.

Sales

Product sales channels:

Electricity according to the "Green Tariff" of Ukraine.

According to the Law of Ukraine "On Electric Power Industry", business entities that produce electricity using renewable energy sources can sell it to the state at an inflated tariff.  This rule of law is valid until 2030 and obliges the state in the person of the state company "Energomarket" to buy from the subjects all electricity generated by renewable energy sources at a green tariff.  All tariffs are attached to the Euro currency and are quarterly recalculated according to the NBU average rate for the previous month.

The Green tariffs for commercial facilities put into operation from 2017 to 2019:

land solar power plants - 0.15 € / kWh

roof solar power plants - 0.164 € / kWh 

Such a legislative decision was taken to stimulate the development of alternative energy in Ukraine, and today the green tariffs in our country are among the highest in the world. Any company / legal entity has the opportunity to invest in the construction of a solar power plant on the territory of Ukraine and receive from this income, as from any other type of activity.

Organic fertilizers will be sold as:

  •  - Direct sales.
  •  -To distributors.
  •  - Personal sales of non-standard agents around the world.

Franchise, participation in promo events:

  •  - Organization of trainings and seminars,
  •  - Participation in exhibitions,
  •  - Carrying out of actions and advertising campaigns.

Patents

Application and registration of two patents. 

The authors of patents OI Elizarov, MO Elizarov.

The owner of the exclusive license on the patents: The company-owner

Harvesting of blue-green algae.

Recycling and utilization of blue-green algae.

Licenses

The company-owner will arrange:

An electricity producer license.

Membership in WEM. 

At 500 kWh.

Advertising and promotion of goods on the market

The plan of promotion in the market of the company-owner includes a number of activities that promote sales growth.  The company-owner uses television, radio, newspaper advertising along with the distribution of free samples of new products and a number of other marketing tools.  Detailed analysis has showed that for advertising, as well as other activities aimed at increasing sales 5% of total sales or 5% of the company's gross income should be used. For the above purposes, the company-owner plans to use at least 5% of total sales for 3 years. Basing on the experience gained, the following classification was made in the order of the likely effectiveness of tools for advertising companies, as well as other mechanisms that promote the product on the market.

 
Advertising Promotion

On television  ($700/30-second ad) Free samples ($35/day,  $.0.35 each)

On radio ($90-100/60- second ad) Coupons ($50/day,  $.05 each)

newspaper advertising ($700/4 issues) Discounts ($25/package)

Stickers with the trademark

 ($0.15 each) Prizes, competitions, ______

 
Public relations

Compiling and publishing press releases in periodical industry publications.

Trade shows

Representatives of the company will organize trade shows and take part in exhibitions.

 
Participation in seminars and conferences

The company-owner will regularly demonstrate the key advantages of the company at conferences and seminars, provide information about the company's activities for technical catalogs.

 
Print advertising and publication of articles

The advertising of the company-owner in printed publications includes publication of articles in specialized newspapers, magazines, direct mail distribution, brochure replication, etc.

Internet

The company website is developed, which will become an additional information resource for consumers.
 

Staff

Five-year forecast of the number of employees of the company

Forecast

 Year 1

Year 2 

Year 3 

Year 4 

Year 5 

Total number of employees

 53

 70

82 

104

 120

Scientific staff

Production

Currently, the company-owner owns 4500 square meters of production facilities. Of these, 3500 sq. m. are production and laboratory for scientific work and 1000 sq. m. are for cafe, restaurant, kitchen, and the company office. Our main investment in premises is 1 248 000 $, in equipment - 300 000 $. The equipment is our own and its cost is 300 000 $.

Laboratory

Required investments

In order to purchase additional equipment and increase the area of production facilities, it is necessary to invest an additional 6,000,000 euros. Of these, 4,880,000 euros will be used to purchase equipment, technical documentation, work to launch the project on industrial capacity. 1 220 000 euro will be used to purchase the right to land 10.7 hectares for production and production facilities, construction and equipment of a modern laboratory.

Financing should be made by attracting grants of 50% and by obtaining a five-year bank loan - 50%

As collateral for the loan, equipment or other property of the company may act.

[The capitalization of the company-owner is 1,200,000 euros]

Risk management (selectively).

Below is a description of the most important internal and external risks that may affect the activities of the company-owner.

The company-owner is at the stage of formation and largely depends on the qualification of the personnel, works in conditions of severe competition.
 

Early stage of development.  The company-owner is at the stage of formation, and its market share is insignificant. Management staff has experience. The company-owner and its prospects should be considered in terms of risks, costs and difficulties faced by companies at an early stage of development.

Lack of experience and the likelihood of managerial error. The risk of managers' mistakes exists at any stage of the company's development, but especially it becomes relevant at the beginning of the company-owner's activity due to the company's lack of experience in the new business.

Low input threshold is a highly dynamic industry with many specific aspects of this business. The market is characterized by fierce competition; it is quite saturated with products and is subject to a rapid technical change.

Supporting and strengthening the trademark. Very important is the process of formation, support and strengthening of the company-owner’s trademark. At the initial stage, as a rule, it can not be financed from the company's revenues.

 

 

 

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