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Waste heat water heated greenhouses. Using hot water from Kakanj coal power plant to heat greenhouses for off season vegetable production. Idea is not new. Niederau, Germany, from 1987 ROCA 3, Netherlands Many other in development Numerous studies. Major competitive advantages.
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Waste heat water heated greenhouses Using hot water from Kakanj coal power plant to heat greenhouses for off season vegetable production
Idea is not new • Niederau, Germany, from 1987 • ROCA 3, Netherlands • Many other in development • Numerous studies Edin Pašić, Waste heat water heated greenhouses
Major competitive advantages • Heating is 28% of total costs in heated greenhouses. • It can be obtained virtually for free from waste water tanks in the power plant. • Location is within 20 minutes from two largest cities in BiH (Sarajevo and Zenica) with aprox. 1 million potential consumers. Edin Pašić, Waste heat water heated greenhouses
Business opportunities • Bosnia imports 25 million EUR of off season vegetables per year (very conservative estimation) • No large scale off season producers in Bosnia • Government subsidies up to 50.000 EUR for greenhouse building • Business expansion (hydrophonics, volume expansion...) Edin Pašić, Waste heat water heated greenhouses
Investment • 6 ha arable land • 5 ha greenhouse • Hot water pipeline and heat exchangers • Office and warehouse: 1000 m2 Edin Pašić, Waste heat water heated greenhouses
Possible location within 500m • Power Plant • Greenhouse location Edin Pašić, Waste heat water heated greenhouses
Basic metrics • Initial investment: 1.500.000 EUR • Net income/year: 270.000 EUR • 10 year IRR: 12% with no subsidies included • 30 years NPV at 8% discount rate: 1.5 million Edin Pašić, Waste heat water heated greenhouses
Basic metrics • All calculations are based on single crop production (tomato) • Netherland standard cost structure of 64% is used in calculation. Edin Pašić, Waste heat water heated greenhouses