Hybrid approach based on Solar concentration and Biological combustion

1. OPPORTUNITY
FOR
INVESTMENT
IN
RENEWABLES
HYBRID
APPROACH
BASED
ON
SOLAR
CONCENTRATION
AND
BIOLOGICAL
COMBUSTION

2. Agenda
§
About
us
§
The
origin
and
the
inspiration
§
The
HT
system
§
How
does
it
work
§
The
regulatory
framework
§
HT
175KW
–
Costs/revenues
analysis
§
Cash
flow
§
Operational
phases
§
Our
proposal

3. About
us
§
Since
2010
Bizando
has
been
active
in
the
renewable
energy
sector
by
supporting
the
production
of
energy
from
sources
whose
use
does
not
affect
natural
resources.
§
Bizando
has
participated
actively
in
the
development
of
large
photovoltaic
and
wind
projects
in
different
Italian
regions,
including
Basilicata,
Campania,
Lazio
and
Sardinia
§
Bizando
operates
through
a
network
of
commercial
and
technical
partners
by
offering
personalized
and
comprehensive
services:
§
§
addressing
the
requirements
of
the
projects
satisfying
the
objectives
of
"value
for
money"
imposed
by
the
client
§
Bizando
is
able
to
offer
solutions
"turnkey"
in
the
field
of
renewable
energy,
with
particular
reference
to
the
mini
wind
turbines
and
hybrid
thermodynamic
systems.
§
Bizando
is
also
active
in
other
areas,
such
as
management
consulting
in
telecommunications,
the
supply
of
mass
SMS
mode
'managed
service'
and
the
development
of
apps
for
all
types
of
mobile
devices

4. The
origin
and
the
inspiration
§
The
system
based
on
concentration
for
production
of
energy
has
been
inspired
by
the
famous
mathematician
and
inventor
Archimede
Pitagorico,
the
Syracusan.
In
the
famous
battle
of
Syracuse,
the
mathematician
used
burning
mirrors
to
repel
the
attack
of
the
enemy
ships.
In
essence,
sunlight
was
"concentrated"
with
mirrors
on
wooden
body
of
the
enemy
ships,
causing
burn
and
fire
hazard,
thanks
to
the
high
temperatures
reached
in
the
impact
of
projected
rays.
§
Concentration
plants
use
essentially
the
same
system.
They
focus,
using
special
lenses,
the
solar
rays
on
a
tube
of
glass
and
steel
(collector)
of
special
and
exclusive
technology
§
The
whole
thing
can
be
usefully
combined
with
the
generation
of
heat
obtained
by
burning
biomass

5. The
HT
System
§
The
“HT
system”
use
two
primary
sources
to
obtain
a
continuous
production
of
electricity:
§
The
sun
(via
Concentration
plants)
§
The
biological
combustion
realized
through
a
special
heat
source
(natural
gas,
biogas,
biomass)
§
Another
result,
very
useful
in
different
applicative
contexts,
is
the
production
of
thermal
energy
that,
if
used,
can
lead
to
CAR
certification
(Certification
of
High
Efficiency).
§
The
respect
for
the
environment
is
guaranteed
by
the
values
of
pollution
produced,
which
is
almost
null.

6. The
HT
System
(cont.)
§
The
integrated
system
allows
the
collection
and
storage
of
solar
thermal
energy
and
its
use,
direct
and
deferred,
together
with
the
burning
of
plant
biomass
for
the
production
of
hybrid
electricity
with
cogeneration
of
thermal
energy
through
the
turbine.
§
The
thermal
energy
thus
produced,
can
be
used
directly
for:
§
producing
energy
(which
can
be
re-­‐used
on
site
or
delivered
to
the
grid);
§
warming
environments
and
/
or
sanitary
water;
§
cooling
environments
and
/
or
refrigerators;

7. How
does
it
work
§
In
the
tube
flows
a
liquid
(water
or
oil
thermodynamic)
which
is
heated
by
the
concentrated
sunlight
bringing
the
liquid
to
gaseous
state
(steam)
§
Also
a
boiler
powered
by
the
combustion
of
biomass
is
involved
for
further
heating
the
liquid.
§
The
steam
turns
turbines
that
generate
energy
through
an
alternator.
Therefore,
the
thermal
energy
is
transformed
into
mechanical
energy
and
this
in
turn
into
electricity.
§
With
the
capture
of
solar
energy,
can
be
estimated
a
huge
reduction
in
the
consumption
of
energy
from
biomass
burning
(up
to
40%,
depending
on
the
power,
the
size
of
the
solar
field
and
the
place
of
installation)

8. The
regulatory
framework
§
The
SP
system
is
perfectly
classified
in
specific
national
regulations
that
are
of
considerable
interest
for
the
efficiency
of
the
system.
§
The
Ministerial
Decrees
of
reference
are:
§
Decreto
11/4/2008
del
Ministero
dello
Sviluppo
Economico
-­‐
"Criteri
e
modalità
per
incentivare
la
produzione
di
energia
elettrica
da
fonte
solare
mediante
cicli
termodinamici”:
establishes
the
criteria
and
procedures
for
promoting
the
production
of
electricity
from
solar
energy
using
thermodynamic
cycles
§
Decreto
6/4/2012
delle
FER
Elettriche
-­‐
Art.28:
confirms
and
improves
the
previous
regulation
and
incentives
for
the
production
of
electricity
from
renewable
different
system
including
the
production
of
industrial
gas
/
biogas
/
biomass
§
The
incentives
for
the
thermodynamics
are
fixed
for
25
years
§
The
incentives
for
the
combustion
are
valid
for
20
years
and
regulated
by
feed-­‐in
tariff

9. The
authorization
aspects
§
Regulatory
compliance
is
one
of
the
assessment
criteria
in
financing
transactions,
since
a
picture
not
completely
outlined
may
result
in
situations
of
potential
administrative
litigation.
§
Article.
12
of
Legislative
Decree
no.
N.
387/2003
and
national
guidelines
in
DM
10/9/2010
state
that
single
interventions
depending
on
the
installed
power
may
be
subject
to
Prior
communication,
Report
of
Home
Activity
(DIA)
or
Single
Authorization
(AU).
§
Thermodynamic
Solar
Plant
with
a
capacity
of
no
more
than
999KW
can
be
made
with
the
discipline
of
the
DIA
(today
PAS,
the
simplified
authorization
procedure).

10. SP
175KW–
Costs/revenues
analysis
GENERAL
DESCRIPTION
§
Installed
electric
power
175KW:
§
§
§
Solar
Power
Biomass
combustion
(Sanse,
or
pomace)
Data
of
annual
energy
production:
§
Kwh/year
588.000
§
Biomass
Combustion
Kwh/year
882.000
§
§
Solar
Thermodynamics
Total
Kwh/year
1.470.000
Energy
selling
price*:
§
Solar-­‐Thermodynamic
0,36€/KWh
§
Biomass
0,28€/KWh
*
Please
note,
for
conservative
estimates
we
have
not
taken
into
account
the
remuneration
related
to
CAR

11. SP
175KW
–
Costs/revenues
analysis
INVESTMENT’S
VALUE
(first
estimation)
§
Costs
of
the
Plant:
Land
acquisition
§ Engineering
&
Permitting
§ Construction/Civil
works
§ Connection
&
Network
works
§ 175KW
plant
Total
turnkey
~
1,5
ML€
§
§
Annual
operating
costs:
Operations
and
maintenance
§ Purchase
of
biomass
Total
180K€
/
year
§

12. SP
175KW–
Costs/revenues
analysis
REVENUES
§
Values
of
annual
sale
:
§
Sale
of
Solar
Energy
0.36€
/
kwh
0,36
X
588.000Kwh
=
211.680€
§
Sale
of
Biomass
Energy
0.28€
/
kwh
0,28
X
882.000Kwh
=
246.960€
§
Sale
of
Energy
(no
incentive)
0.083€
/
kwh
0,083
X
588.000Kwh
=
48.804€
Annual
Revenues:
~507.440
€

13. SP
175KW–
Costs/revenues
analysis
FINANCIAL
PARAMETERS
§
INITIAL
INVESTMENT:
~
1,5
ML
€
§
ANNUAL
GROSS
MARGIN:
>
300
K
€
§
PAYBACK
PERIOD:
~
5
years
§
INTERNAL
RATE
OF
RETURN:
~
20%
§
CASH
FLOW:
see
next
two
charts*
*
Please
note,
for
all
the
calculation
a
2%
inflation
has
been
considered
year
by
year

14. Preliminary
Cash
Flow
estimation
(years
0-­‐15)
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Investment
-­‐1.500.000,00
€
Sales Solar Thermodynamic
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
Sales
Biomass
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
Total Sales
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
Total Costs Gross Margin
-­‐1.500.000,00
€
€
180.000
€
327.444
€
183.600
€
323.844
€
187.272
€
320.172
€
191.017
€
316.427
€
194.838
€
312.606
€
198.735
€
308.709
€
202.709
€
304.735
€
206.763
€
300.681
€
210.899
€
296.545
€
215.117
€
292.327
€
219.419
€
288.025
€
223.807
€
283.637
€
228.284
€
279.160
€
232.849
€
274.595
€
237.506
€
269.938
Cumulative
balance
-­‐€
1.172.556
-­‐€
848.712
-­‐€
528.540
-­‐€
212.113
€
100.493
€
409.202
€
713.937
€
1.014.618
€
1.311.163
€
1.603.490
€
1.891.515
€
2.175.152
€
2.454.312
€
2.728.907
€
2.998.845

15. Preliminary
Cash
Flow
estimation
(years
16-­‐25)
Year
16
17
18
19
20
21
22
23
24
25
Sales Solar Sales
Thermodynamic Biomass
Investment
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
246.960
€
246.960
€
246.960
€
246.960
€
246.960
Total Sales
Total Costs Gross Margin
€
507.444
€
507.444
€
507.444
€
507.444
€
507.444
€
260.484
€
260.484
€
260.484
€
260.484
€
260.484
€
242.256
€
247.101
€
252.043
€
257.084
€
262.226
€
167.471
€
170.820
€
174.236
€
177.721
€
181.275
Cumulative
balance
€
265.188
€
260.343
€
255.401
€
250.360
€
245.218
€
93.013
€
89.664
€
86.248
€
82.763
€
79.209
Please
note,
the
values
are
very
conservative:
• Sold
thermodynamic
energy
doesn’t
take
in
account
the
annual
increase
of
the
selling
price
• Sold
biomass
energy
after
the
feed-­‐in-­‐tariff
period
is
not
reported
€
3.264.033
€
3.524.375
€
3.779.776
€
4.030.135
€
4.275.353
€
4.368.367
€
4.458.031
€
4.544.279
€
4.627.042
€
4.706.250

16. Operational
phases
Site
Pre-­‐Design
STMG
• Finding
• Preliminary
• Managing
the
suitable
area
design
request
of
for
the
• Business
Plan
connection
to
industrial
the
Grid
initiative
Network
• Site
report
• Permitting
• Acquisition
of
the
area
and
contracting
Construct
• Starting
Site
Work
• Supply
Management
• Construction
Test
GSE
• Testing
of
the
• Management
system
and
of
of
the
practice
the
plant
with
GSE
Operations
&
Maintenance

17. Our
proposal
§
Bizando
offers
a
program
development
framework
focused
in
Sicily
(Italy),
which
includes:
§
Systematic
search
for
suitable
sites
to
be
allocated
with
the
installation
of
1MW
plant
§
Support
to
all
administrative
practices
for
the
acquisition
of
sites
and
obtaining
all
necessary
approvals.
§
Design
and
construction
(turnkey
plant)
§
Management
and
operation
of
the
plant
for
the
entire
period
of
its
useful
life

18. Findings
The
project
proposed
by
Bizando
is
characterized
by
a
number
of
factors
extremely
positive:
§
Turnkey
approach,
by
the
acquisition
of
sites
to
the
plant
in
operation.
§
Authorization
process
very
streamlined.
§
Rates
of
return
on
investment
of
high
interest
(about
20%)
§
Ability
to
modulate
the
investment
coherently
with
the
needs
of
the
investor.

19. Contacts
info@bizando.com
This
document
is
only
a
general
overview
of
the
subject
treated
in
it.
In
no
way
is
meant
complete,
especially
without
adequate
technical
explanation
and
necessary
deepening.