Investment project

Note: Profitability is approximately 11.82% before taxes and amortization

Description

Investment project. Two heat and power plants. Installation with 2 cogenerators, each with a capacity of 2000 kW. Total installation capacity: 4000 kW. Location: Germany Project: The project is being implemented in the form of a GmbH Two cogenerators (combined heat and power plants) will supply heat to two large local horticultural companies. Corresponding heat supply contracts have been signed for a period of 10 years. The electricity generated will be fed into the general electricity grid and paid for according to the EEG law. The electricity sales contracts are valid for 10 and 13 years. Commissioning: Connection to the networks and commissioning are scheduled for the fourth quarter of 2020. Equipment: 2 cogenerators of the Jenbacher 612 type, manufactured in 2010 and 2013. Capacity: Cogenerator 1: 8,059,200 kWh of electricity, 8,000,000 kWh of heat. Cogenerator 2: 6,132,000 kWh of electricity, 6,000,000 kWh of heat. Rates: Cogenerator 1: Electricity 0.202 EUR/kWh Heat 0.030 EUR/kWh Cogenerator 2: Electricity 0.209 EUR/kWh Heat 0.030 EUR/kWh Starting from the third year, the heat sales rate will increase by 2.5% every two years. Annual income: Cogenerator 1: EUR 1,938,007 (from electricity sales EUR 1,627,958, flex premium EUR 70,049, from heat sales EUR 240,000). Cogenerator 2: EUR 1,579,122 (from electricity sales EUR 1,281,588, flex premium EUR 117,534, from heat sales EUR 180,000). Total annual income: EUR 3,517,129 before expenses. Annual expenses: Cogenerator 1: EUR 1,706,914 (gas purchase EUR 1,526,250, maintenance EUR 120,888, insurance EUR 10,000, electricity/other operational expenses EUR 49,776). Cogenerator 2: EUR 1,301,967 (gas purchase EUR 1,161,277, maintenance EUR 91,980, insurance EUR 10,000, electricity/other operational expenses EUR 38,710). Total annual expenses: EUR 3,008,881 Net income: EUR 508,248 Cost: Cogenerator 1: EUR 2,250,000 Cogenerator 2: EUR 2,050,000 Total cost: EUR 4,300,000 Profitability: approximately 11.82% before taxes and amortization Amortization: The amortization through taxes will be approximately EUR 286,667 per year. Brief information on the sale and operation of the installations: Both heat and power plants belong to a German company that has been involved in similar alternative energy projects for many years. After the sale, the company will carry out all modernization, installation, and commissioning work. A specialized firm for operating biogas plants and heat and power plants, which is a subsidiary of the company, will take full management of the facility. Both installations and all existing long-term contracts (for connection to the nationwide gas network and gas supply, maintenance, heat and electricity sales, insurance, etc.) will belong to a specially organized GmbH. Simultaneously with the notarization of the purchase agreement, the GmbH will have notarized contracts for the installation of the heat and power plants, connection to the networks, commissioning, and a long-term contract for commercial and technical management of both installations. Taxes can be optimized through an investment agreement.