Südzucker Moldova SA to invest EURO 10 million in its own energy project
The stability of the branch will enable the company Südzucker Moldova SA to invest EURO 10 million in its own energy project
Südzucker Moldova SA has organized, on Wednesday, April 14, in the conference room of Leogrand hotel, the presentation ceremony of a new project of the company – the construction of a biogas production factory based on sugar beet-chips (pulp) in the city of Drochia, on the territory of the main sugar producing factory of the company. Representatives of relevant ministries and institutions, of the diplomatic corps, of the investors associations, as well as agrarians, experts, business people, journalists have been invited to participate in the event. The management of the company presented to the audience the concept of the investment project and has outlined the framework conditions necessary for its implementation.
The projected processing capacity constitutes 800 tons of beet chips – sugar production refuse (offal) – per day; about 110 thousand cubic meters of biogas produced per day (which consists in the amount of about 55-70 percent of methane, 1 cubic meter of biogas being equivalent to 0,6 cubic meters of natural gas or 0,56 litters of diesel). The own production of biogas shall cover by about 60 percent the needed energy resources for the season of the sugar beet factory from Drochia. In case of growth of prices for natural gas the existence of an alternative energy source, produced of beet chips, shall have a favourable impact on the sugar production company giving it the possibility to reduce the energy dependency of the enterprise. Moreover, the use of beet chips during the biogas production process will permit the sugar factory from Drochia to use secondary products obtained as a result of sugar beet processing in the most efficient way existing at the moment, these being accumulated in the volume of about 80 thousand tons during one season.
Following the low demand of beet-chips on behalf of the local animal breeding sector and granulated solid chips – on behalf of the international market, Südzucker Moldova SA was imposed to resort to the use of beet chips on special fields. Thanks to the construction of the biogas production factory, the company will be able to process in an inoffensive and efficient way the whole volume of secondary products of the sugar production process, a fact that would lead to the reduction of greenhouse gases emissions in the atmosphere, having a favourable impact on the ecologic situation in the region.
According to the project, the factory follows to be built during the period 2011-2012. During the current year, the set of design document shall be prepared (considering all social-economic and natural factors, including the seismic particularities of the area), and the project will be coordinated with all state institutions. At the present moment, the construction plan of the factory was studies and approved by all divisions of the City Hall and City Council of Drochia. The review of the plan by the Ministry of Environment and Ministry of Agriculture and Food Industry, as well as by their subdivisions shall be concluded in the nearest future. During the months of January-February of the next year we are planning to launch the construction itself, which follows to be finalized in August-September 2011. At the beginning of the year 2012 the factory shall start its full fledge activity.
The volume of investments made by Südzucker Moldova SA in the creation of the biogas production factory shall constitute about Euro 10 million. The investments will be recovered during about eight years. All in all, the company invested until now in the upgrading of sugar beet production in the Republic of Moldova about MDL 372 million, including in the intensification of sugar beet cultivation – about MDL 52,5 million.
At the same time, the long period of investments recovery for the construction of the biogas production factory imposes the need to maintain some framework conditions established for the activity of the sugar and sugar beet complex from the Republic of Moldova. In particular, the management of Südzucker Moldova considers the maintenance of the Value Added Tax on sugar at the present level of 8% and of customs duties – at the level of 75% of vital importance. It is worth mentioning that the comparable level of VAT (6-10%) and even a higher level of tariff protection of the domestic market is applied in all countries in which a viable industry of sugar beet growth and sugar production exists. The modification of at least one of the parameters of the framework conditions may lead to the decrease of the price for sugar beet and to the decrease of production – both of the given crop as well as of the sugar made of beet, a fact that may lead to the deficit of sugar on the domestic market of the Republic of Moldova. At the same time the supplies of cane sugar will become possible, this finally provoking the blocking of the access on the export markets from the EU and Russian Federation, as well as the reduction of sugar beet production in the Republic of Moldova.
The investments of the company Südzucker Moldova SA are focused on a sustainable and complex strategy on the development of the sugar beet and sugar complex from the Republic of Moldova in the interests of the agricultural producers and sugar producers from the country. The management of the company considers that such a policy corresponds to the interests of the national economy of the country and suggests the Government of the Republic of Moldova to determine the condition of maintaining for medium term the present framework conditions of the sugar beet and sugar complex operation in the text of the investment memorandum.
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