ASTARTA. Energy efficiency and bioenergy opportunities

Transcription

1 ASTARTA Energy efficiency and bioenergy opportunities

2 ASTARTA history and business structure The Group s history foundation of the Group started agricultural business first sugar plant in Poltava region The Group s assets location Khmelnytsky region Narkevychi sugar plant tonnes/day Vinnytsa region Zhdanivsky sugar plant tonnes/day four additional sugar plants Astarta IPO on Warsaw Stock Exchange Poltava region Kharkiv region the Group actively expands by acquiring new agricultural companies and increasing the area of agricultural land in lease sugar plant and farming assets in Western Ukraine Khmelnytskyi region Kyiv Vinnytsya region consolidation of production assets into integrated business units two sugar plants and agri-assets in Kharkiv region initiated soybean processing and biogas generation projects sugar plant in Poltava region, commissioning of soybean processing and biogas plants ASTARTA's business units Globino processing plant Bioenergy plant Kobelyaky sugar plant tonnes/day Yaresky sugar plant tonnes/day Novoorzhytsa sugar plant tonnes/day Poltava region Globyno sugar plant tonnes/day Veselopodilsky sugar plant tonnes/day Head office Kharkiv region Novoivanivsky sugar plant tonnes/day Savinsky sugar plant tonnes/day *ASTARTA s business unit usually combines: agricultural land under cultivation, grain storage facilities, machinery and transportation vehicles, sugar plant, forage factory, and cattle farms

3 DAIRY FARMING SUGAR PRODUCTION AGRICULTURE ASTARTA market position and business model Leading integrated agri-industrial producer One of the largest agriproducers in Ukraine 245 ths ha under management, 100% cultivated About 760 ths tonnes of grain and oil crops and 2.1 million tonnes of sugar beet harvested in 2013 Up to 400 ths tonnes of grain storage facilities More than 3000 units of agricultural equipment in operation; own transport fleet of 700+ trucks, GPS precision farming operations The largest and cost-efficient sugar producer, 25% share in Ukraine in 2013 Sugar output 305 ths tonnes in 2013 campaign Nine sugar plants, daily processing capacity exceeding 43.5 ths tonnes of sugar beet High self-sufficiency in beet production and sugar storage The biggest Ukrainian public producer of milk with 3% share in industrialized milk production Integrated player with own fodder production and high milk yields Total cattle headcount of 31 ths 91 ths tonnes of milk produced in 2013 ASTARTA business model Sugar production Products: Sugar Pulp Molasses Agriculture 26% Dairy 11% Beet pulp Methane Sugar beet Fertilisers Pulp Other 3% Fertilizers Feed Biogas Agriculture Cattle farming Products: Milk Meat Biomass Fertilizers Agriculture 57% Wastes Soybean Husks (as fuel) Soybean meal Gross Revenue and EBITDA breakdown, 2013 Revenue Dairy 14% EBITDA Soybean Processing Sugar production 60% Gross revenue excludes intersegment revenue of sugar beet at cost of EUR 116 million EBITDA includes IFRS revaluation of biological assets (IAS 41) Products: Oil Meal Husks 3 Sugar production 29%

4 Ukrainian sugar market overview 4 Key considerations Ukraine has high quality land and favorable climate conditions for sugar beet farming Market characterised by continuously increasing share of industrial consumption Upon WTO accession, Ukraine had agreed to a quota of 270 ths. tonnes of raw sugar to be imported under a 2% tariff rate. Imported sugar above this level is charged with a 50% tariff In 2013/2014 marketing year ASTARTA will sell record high amount of sugar about 370 ths. tonnes Other; 47% Players in the sugar market, volume Radekhovtsukor; 5% ASTARTA; 19% Source: Ukrtsukor, Company data Ukrlandfarming; 9% Mriya; 8% Ukrprominvest; 7% Kernel; 5% Other; 33% Svitanok; 6% Mriya; 7% Ukrprominvest; 13% ASTARTA; 26% Radekhovtsukor; 15% Sugar production in Ukraine (million tonnes) Industrial vs. direct consumption of sugar in Ukraine 3,0 2,5 2,0 60% 55% 50% 45% 1,5 1,0 0,5 2,0 2,6 1,9 1,6 1,3 1,5 2,3 2,2 1,2 40% 35% 30% 0,0 25% Source: Ukrtsukor, Company data Source: Ukrtsukor, Company estimations

5 Bioenergy plant 5 Waste-to-energy opportunities The processing capacity is tonnes of beet pulp per day Daily capacity for biogas production upto м³ Biogas is replacing up to 50 % of natural gas used by sugar plant Production of 250 tonnes fertilizers per day Positive environmental effect due to closed cycle of production, reduction of natural gas consumption

6 Bioethanol project at ASTARTA ASTARTA's potential synergetic model for Globino foresees combination of Sugar factory + Biogas factory + Bioethanol factory Biogas factory to utilize 100 % of wastes from Sugar and Bioethanol factories Key features: Own feedstock beets, sugar juice, green syrup, molasses Distillery waste utilization by methanization facility Modern distilling technology with lower energy consumption (proposed by Maguine) Cheaper source of energy biogas from beet pulp methanization 6 Key technical parameters for bioethanol project Product: Component Motor Fuel Alternative Daily production: dal (80 т) Daily molasses consumption 335 т Daily biogas consumption m 3 Working days 330 Bio-organic projects of ASTARTA Soybean inoculants, liquid: Stubble destructants Biological fungicides Probiotics

7 Way forward Key features: 7 Pulp is processing days of sugar production campaign Complex will be utilizing wastes 230 days out of sugar campaign and produce biogas for local needs - built oil extraction plant and future bioethanol plant. Sugar beet pulp, beets peaces, leafs, corn harvest leftovers, bioethanol distillery stillage, pretreated wood chips (R@D stage) can be used as raw material for biogas complex out of sugar season Strategic development options are: the construction of bioethanol plant to fulfill the synergy with sugar plant and biogas facility Construction of second biogas pipeline to oil extracting factory and biogas driven cogeneration units installation Project CAPEX is approximately million EURO

8 2014 Synergy 8

9 beets 2015 Synergy molasses, green syrup 9 Water pond SUGAR Waste water cleaning BIOETHANOL Soya oil, protein feed (no GMO) soya beans 9

10 Enzymatic hydrolysis catalytic treatment mechanical fast pyrolysis Present directions of the company 10 Fast growing poplar as a source of cellulosic biomass C6 + C5 sugars Depolymerized organics Cutted and branches cleaned trees Wood wastes, bark and branches Second generation bioethanol BIOGAS Raw material for paper production Syngas, Furness oil 10

11 Green goals and targets of Astarta 1) Reduction of natural gas, coal, lime and water consumption per ton of processed beets at company s factories. 2) Replacing natural gas with green biogas at company s factories - 50% at Globino sugar factory season of 2014 and 80% replacement at oil extracting factory in Globino starting ) Production of green electricity, steam and heat at company s factories. 4) Replacement of mineral fertilizers with green fertilizer after anaerobic process. 5) Lower the water consumption balance by returning cleaned water back in to the lake. 6) Consider biogas as source of energy for green electricity, heat and steam production in bioethanol factory of first generation. 7) Waste utilization in anaerobic reactors and usage of biogas for heat and electricity production gives any factory green points and half step up in generation. 8) Earning a CO2 quotes, by consuming volumes of it, while growing poplar

12 ASTARTA s cooperation with FAO and EBRD 12 Directions of cooperation between FAO, EBRD and ASTARTA Accessing quality expertise Exchange experience Participation in round tables, conferences Training programs for specialists Financing programs

13 Corporate social responsibility 13 Addressing social problems ASTARTA is an active member of the UN Global Compact: In January 2008, ASTARTA joined the Global Compact of the United Nations By signing this Compact, our Company committed itself to adhere to, support, and implement basic values in the areas of human rights protection, employment, environment protection, and fighting corruption as part of its operations The Company develops social infrastructure in those areas where its enterprises operate, and is concerned with improving the wellbeing of the community: In 2009, we initiated signing Social Responsibility Agreements with the municipalities where our production assets are located Under these agreements, the Company committed to assist those municipalities in developing their social programs and public infrastructure Managing ecological risks ASTARTA implements energy efficiency programs aimed to cut natural gas consumption at its sugar mills The programs realization is to provide the following results: decrease in sugar prime cost by means of efficiency increase quality improvements by means of application of more advanced production technologies and decrease in pollutants and emission of green-house gases into atmosphere As Ukraine is an active member of the Kyoto Protocol, the Company signed an agreement with the Multilateral Carbon Credit Fund (MCCF) established by the EBRD and the EIB, to sell carbon credits The agreement, which covers the carbon credits generated during the period between 2008 through 2012, is the first deal of the MCCF in Ukraine

14 14 THANK YOU FOR ATTENTION!