German-Russian seminar for nontraditional and renewable sources of energy. Berlin 12-13.11.08

1. Greta Energy Investment Projects in South Federal District Of Russian Federation Belilovsky V. Ermolenko G. Tshomaria V. Kompanietz E. Popel O. Dunaev K. Kaledina A. German-Russian seminar for nontraditional and renewable sources of energy. Berlin 12-13.11.08 Nikomarova A.

2. Small HPPs of Uruch and Hazni-Don rivers in Kabardino-Balkariya Feasibility of the Project

3. Project Description The project foresees construction of: • 2 HPPs cascade at Uruch river • 4 HPPs cascade at Hazni-Don river With total installed capacity 45 MW

4. Goal of the project To increase power generating capacities of Kabardino-Balkariya Republic with minimization of negative environmental impact Year 2008: Deficit of generating capacities 85% Deficit of power 74%

5. Project Participants Investor: Engineering, planning, main equipment producer&supplier JSC «Greta Energy RU» JSC «INSET»

10. Main Equipment

11. Main parameters of SHPPs at Uruch river

12. Main parameters of SHPPs at Hazni-Don river

13. Main parameters of SHPPs at Hazni-Don river

14. Preliminary project economical profile

15. Preliminary project economical profile

16. Cattle Breeding Waste Recycling for Heat and Power Production Белиловский В. А. Ермоленко Г. В. Каледина А. С. Цхомария В. Н.

17. Permanent constant price increase for energy resources in Russia, strengthening of environmental requirements, as well as an increasing risk of power grid shutdowns and emergencies makes domestic experts and agricultural enterprises select modern processing and recycling technologies of cattle breeding and poultry farm waste.

18. The following problems can be solved by anaerobic digestion of biodegradable waste: • Implementation of environmental protecting measures to reduce toxic emissions into air, water and soil; • Increasing farm profits by using biogas for heat and power production, as well as offering to the market organic fertilizers with stable properties (absence of smell or repeated rotting), moreover 1 litre of which equals to 100 kg of manure used as fertilizers; • Improvement of reliability and safety in energy supply of cattle breeding and poultry farms by using its own renewable energy sources; • Improvement of soils fertility and fodder area crops by using fertilizers, as a source of biogenic elements and humus.

19. The technology of anaerobic methane digestion with regard to circulation of organics allows to create a system with closed cycle: crop raising - fodder and foodstuffs - waste - anaerobic digestion – crop raising. In this scheme agricultural sector is provided with fertilizers and fodders, and industrial sector (in case of methane recycling) with raw material and energy. This approach contributes to Kyoto Protocol and leads to the reduction of: pollutions, greenhouse gases emission and consumption of nonrenewable resources.

20. According to the statistics of German Biogas Association there are 2200 agricultural biogas plants currently in operation in Europe .             *(Austria 119, Belgium 100, Czech Rep. 10, Denmark 40, France 5, Germany 1900, Greece 67, Irland 13, Italy 67, Lithuania 4, Netherlands 15, Poland 15, Portugal 100, Sweden 6, Swizerland 69, UK 60)

21. Distribution of total amount of agricultural sector organic waste among the federal districts of Russia (mln. Tons/%)

22. The largest share of organic agricultural waste (225 mln t. 36 %) is produced in the Southern Federal District. That’s why Krasnodarskiy Krai is the region of our interests. In the table below one can see data on waste productivity of Yeysk farms.

23. «GRETA ENERGY RU» and Yeysk administration are discussing feasibility of biogas plants construction using the waste of the above mentioned farms. For example we examined one of these farms – JSC “Rodina”.

24. The construction of bioenergy power plant and organic fertilizers production line using manure and agricultural waste as raw material • The aim of the project is to construct biogas plant for JSC “Rodina” farm (Krasnodarkiy krai, Yeysk) operating on the base of recycling biomass and cattle breeding waste. • The project of constructing biogas plant goes along with «Russian Energy Strategy up to 2020» which defines the development of renewable energy as a priority direction.

25. The goals of the project and ways of achieving them.

28. Data used for calculation: • average annual livestock of animals – 3486 heads • daily quantity of manure – 127,1 tons/day • humidity of manure – 85% (mechanical harvesting) • yield of biogas with 1 kg a. g. m. from 0,25 - 0,35 м3 of biogas (60% СН4 and 40% СО2 ) • humidity of silo - 75% • yield of biogas from 1 kg a. g. m. of silo from 0,4- 0,6 м3 biogas (60% СН4 and 40% СО2) • Efficiency of conversion of biogas energy into heat– 85% • Efficiency of conversion of biogas energy into power- 30% • Price of electric power - 2 rub. 32 k. of KWt.h • Price of fertilizers - 1000 rbl. / ton • 1 liter of such fertilizers, obtained as a result of manure recycling, equals to 100 kg of manure, used as fertilizers

29. The energy characteristics of bioreactor utilizing manure. the yield of biogas calculation

30. 2. The energy characteristics of bioreactor utilizind manure + 30% silo.

31. biogas plant price calculation

32. Preliminary economic estimate

33. Project financing The construction of biogas plant will be lead by «GRETA ENERY RU». Once the construction is complete, the plant will be leased to the corresponding farm. The financing scheme: • Loans – 90 % - 72000 thousand rbl. • Budgetary financing – 0 % - 0 thousand rbl. • Shareholders' equity – 10 % - 8000 thousand rbl.

34. Resume • Annual economic effect from biogas plant - 25613 thousand rbl. (in case of animal manure recycling only), payback period - 3 years. • Adding 30% silo will change the annual economic effect to 37776 thousand rbl., payback period - 2 years.

35. Resume • Biogas plant will produce both heat and power to partially cover the needs of JSC “Rodina” (greenhouses, biolaboratory, administrative buildings). Moreover biogas plant will effectively recycle biowaste – manure (127, 1 ton a day and produce environmentally friendly and highly effective fertilizers as a by-product (1 litre of which equals to 100 kg of manure used as fertilizers). • Important results of the project are saving of traditional fuel and reduction of greenhouse gases emissions into atmosphere.

36. Yeisk Wind Farm 50 MWt in Krasnodar region

37. Project description Construction of 50 MW wind power plant in Yeisk municipality of Krasnodar Krai (25 wind generators with unit capacity 2 MW) Project Goals - Environmental friendly power supply of recreation zone; - Improvement of power supply reliability at the dead end of HV line.

38. Location of Yeisk wind farm Site coordinates: 46.7 degreesof north latitude 38,3 degrees of east longitude В Э С 50 МВт

39. 70 м THE WIND MONITORING MAST AT THE YEISK SITE - Height of mast – 70 m- Measurement of speeds and wind directions at heights40, 50, 60 и 70 m- Measurement of air temperature - The independent power supply from solar modules- GSM data transmission

40. Prefeasibility study results Preliminary results of wind monitoring have shown higher than reference data wind potential at the site. Preliminary calculated annual electricity production - 170 mln. kWh

41. Project economical profile (at tariffs - 1.5-1.8 rub./kWh)

42. Krasnopolyanskaya HPP-2 at Mzimta river, Sochi

43. Project description Construction of HPP with installed capacity 30 MW at river Mzimta in Sochi Aim of the project • Guaranteed power supply of Winter Olympic Games complex;

44. Project economical profile (at tariffs - 1.8-3.0rub./kWh)

45. Thank you for your attention!