Feasibility study for the construction of a biofuel boiler house on the territory of PJSC “Kohavinka Paper Factory”
Period 2013
Financing Kohavinka Paper Factory
Services Consulting
Sector Heat energy from biomass
Location Ukraine
Partners Ukraine

Financing organization/partner: PJSC “Kohavinka Paper Factory”

The main activity of the factory is the production of sanitary-paper products – toilet paper and napkins. To meet technological needs, saturated steam in the amount of about 23 thousand Gcal/year is used, for the production of which 3 million m3 of natural gas is burned. The project is aimed at reducing gas consumption, reducing the cost of heat production and reducing the energy component in the cost of finished goods.

At the stage of pre-design studies, a feasibility study was carried out for the reconstruction of the existing heating and production steam boiler room with the expansion and installation of a 4 MW steam boiler. Organizational and technical schemes for providing the boiler house with fuel raw materials, schemes for connecting and marketing heat energy are proposed, layout solutions for the main and auxiliary equipment are developed, and commercial offers are received from equipment suppliers. The financial model of the project is developed, capital, investment costs and operating costs are determined, as well as the main technical, economic and financial and economic indicators of the project.

The term of the project is up to 10 months. The planned consumption of wood chips is about 12 thousand tons per year, the reduction of greenhouse gas emissions – 6.0 thousand tons of CO2e. The planned production cost is 220 UAH/Gcal, the cost of sales is 270 UAH/Gcal, which is 40% lower than the current cost of generating heat from gas. The project is planned to be implemented by attracting credit funds. The discounted payback period of the project is 4.5 years with an internal rate of return of 40%.