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The production of straw pellets will solve the problem of gas service installation in Odessa region

No matter that the 21^st century has already come, as the habitants of over 400 townships and villages in Odessa region still have to use their stoves for heating. The stove for these people is not just the construction from folktales, but the only way not to feel cold in winter. It’s true that these days the provision of gas supply in villages and social facilities in Odessa region goes say the least slowly. The reason is trivial – the lack of funds. As the vice-chairman of Odessa regional administration Alexander Malin says, there is no such a budget which will be enough for solving the problem of gas service installation in Odessa region. Thus the usage of alternative energy sources is not just an experiment, but the necessary in the current situation measure, which may improve the level of living in dozens and even in hundreds of thousands households.

During the heating season 2011-2012 the authorities of Odessa region have already tested alternative energy sources through converting some social facilities to them. The boiler stations working on biofuel were installed in these organizations, moreover, one of the biggest biofuel boiler stations started working in the district hospital of Artsiz city. Wood pellets and straw pellets were mainly used for heating. As the result of such innovation the load on the local budgets decreased, and most importantly, it became really warm in hospitals, kindergartens and schools.

The governor of Odessa region Nikolay Serdyuk assumes that the existing sources of alternative fuel (straw is one of them) aren’t used in Ukraine in full. Mr. Serdyuk says that 50 tones of straw are produced in Ukraine annually, our national stores of this feedstock are the biggest among all European countries. Therefore, it’s really unwise to fail to use it for the alternative fuel production. The experts calculated that 2-3 tones of granulated straw will be enough for heating for instance one school.

It should be noted that heating value of straw pellets isn’t worse than the one of wood pellets, at the same time the raw feedstock for producing straw pellets is much more available and cheaper. In comparison with natural gas wood pellets are more environment-friendly, and they feature a higher energy concentration when their volume is insignificant. Due to a higher packed density of straw pellets it’s easy and cost effectively to store them and transport for long distances. Besides this, the usage of such fuel decreases the risk of fire, explosion and leakage during delivering.

For the time being straw pellet production tends to be a rather profitable business. Since the traditional energy sources annually increase in price, the demand for these pellets permanently grows both in Ukraine and abroad. Nowadays the need in such fuel already prevails over supply, consequently the Ukrainian market of straw pellets always develops, its infrastructure improves, the number of producers and suppliers increases. The participants of the Ukrainian market of straw pellets establish the necessary contacts and develop their distribution channels.

Following the market trends, the partners of Ukrainian Biofuel Portal developed the business plan of organizing straw pellet production. This project describes in details all stages of arranging the production process, moreover the expected profit and the investment cost repayment period are calculated. It’s notified in the business-pan that for the project implementation it’s primarily necessary to supply the industrial premises and transport and also purchase the necessary equipment. All kinds of expected costs including administrative and the expenses for marketing activities are described. The results of the analysis of straw pellet sales market are presented. On the basis of this analysis the annual sales are forecasted and the approximate sale prices are formed.

The present business-pan will be an indispensable source of information for entrepreneurs who plan to start the business connected with a straw pellet production. Thanks for this project the stages of planning and production organization as well as the process of market penetration will be simplified significantly. Moreover, the comprehensive information contained in the business-plan will help entrepreneurs to avoid numerous hidden problems and decrease the financial risks within arranging, launching and implementing the project.

It can be assumed that these days such kinds of business-plans would be the best fit for the entrepreneurs of Odessa region, who intend to produce straw pellets. Moreover, if to take into account the intentions of the authorities to use biofuel in rural districts more and more often, it’s easy to conclude that the demand for such energy source will grow very soon. Yet due to the low level of infrastructure at this power sector and due to the insufficient entrepreneurs’ experience there is a big probability that these people will make mistakes and bear financial losses while arranging the production process and penetrating the market. Yet the accurate computation and comprehensive info about the market state as well as the detailed description of all the stages of the production process would help the straw pellet producers in Odessa to realize their projects quicker and more effectively and therefore heat numerous houses, schools, kindergartens, hospitals and other organizations which experience such a big need in a more available warmth.

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