However, in summer 2019, the supply of hot water suddenly stopped due to the outdated and inefficient (80% output) equipment, which causes the price increase of services and raises the tariff on heat.

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Thus, it was decided to build and put into use the wood chips regasification cogeneration station. At the first stage, the electric capacity of the station is 0.5 MW and heat capacity is 0.8 MW.

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It is planned to build the second stage and expand the electric capacity to 2 MW and heat output to 3.2 MW.

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It is also planned to build a block-modular boiler house with two boilers with a total heat capacity of 14 MW. It is envisaged that the electricity will be supplied to the grid at a feed-in tariff.

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The total cost of the 2 MW electricity capacity project is estimated to be 5.62 million EUR, of which the direct cost of the main generating equipment (gasifiers and cogeneration units) will be 2.69 million EUR. The financial model includes all construction work on the site, including technological and industrial buildings (boiler house, computer room, and auxiliary structures), foundations, steel structures, pipelines, gridlines, etc.

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Total investment costs for the heat and power generation projects are 5.93 million EUR, of which the first stage of biomass cogeneration plant has already been financed for 6.03 million EUR.

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Total payback period: 3 years.

IRR: 27.9%.

EBITDA: 1.76 million/year EUR.

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The total return on investment planned for the project (1.8 million EUR or 30% of the project cost) will be 1.9 years and the IRR will be 39%.