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Creation of industrial complex forCreation of industrial complex for
extraction and complex waste-freeextraction and complex waste-free
processing of peat with acquisition of soilprocessing of peat with acquisition of soil
modificator «AridGrow» for production ofmodificator «AridGrow» for production of
environmentally clean agricultural productsenvironmentally clean agricultural products
1
Factors of success of the project
2
Population increase The limited area of arable
land
Erosion, salinization,
desertification of soil
Increase in fertilizer consumption up to 14% annually
Increase in fertilizer prices up to 30% annually
Structure of the object
Peat extracting section:
Milled peat 600 thousand m3 per
annum
3
Fuel and energy
complex:
Electric power
Energy resources
Diesel fuel
Fish breeding complexes
Peat processing section:
Soil modificator: 480 thousand м3 per annum
Pelletized soil conditioner :15 thousand tn per annum
Bioadditive : 72 thousand м3 per annum
The boundaries of the
project
Prospects of development
Peat in the Chuvash Republic
38 peat deposits 656 ha
Total geological reserves of peat 10038,5 thousand tn
With relative humidity of 40% 50129 thousand м3
4
Advantages of fertilizers - soil modificators
 In short terms create self-renewable
sustainable fertile soil system
 Reduce pollution degree and soil
salinity
 Reduce irrigation water consumption by
3-4 times
 Completely replace synthetic mineral
fertilizers
 Minimize soil revegatation costs when
preparing planting area (with 20-40 $ /
m2 up to 1-2 $ / m2)
 Increase survival rate of plants
transplanted
 Increase crop capacity by 30%
5
Projects and resultsThe territory of Sakhir in
Bahrain
6
Cucumber plantation «AridGrow» (Qatar)
Lawn grass (United Arab Emirates, Qatar,
Bahrain)
Commodity market of soil modification fertilizers
7
Volume of world
consumption of
fertilizers – 70
млрд.$
Persian Gulf
countries– 21,2 bln
$ (106 mln м3)
Russia
External market
Internal market
Main consumers of soil
modification fertilizers:
Kingdom of Bahrain
Qatar
Iran
Jordan
Interested in buying:
Egypt
China
Turkmenistan
Kazakhstan
Project performance evaluation
Main indicators of the project performance evaluation (2012-2018 years):
Net Present Value of the project (NPV) 14,9 mln. EUR (596,5 mln. RUR)
Pay-Back Period of the project (РВР) 5,5 years
Internal rate of return of the project (IRR) 54,8%
Profitability of sales under the project 36,71 %
Net profitability under the project 27,34%
8
Project cost 32.25 mln. EURO (1290 mln. RUR)
Attracted investment 24 mln.EURO (893 mln. RUR.)
Number of new jobs 154
Risks of the project
 Changes in the USD exchange rate
 Risks connected with specificity of deliveries to the Gulf States
 Political situation in the world
 Legislative risks connected with imposition of export customs duties
 Increase in freight tariffs for transit by railway and sea shipping
9
Advantages of the Chuvash Republic in the project
implementation
 Availability of peat deposits with peat reserves of appropriate quality and
quantity
 Availability of stock-farms and poultry farms on the nearest territory
(supply of primary products for additive production)
 Developed transport infrastructure
 Competitive salaries
10
11
Project implementation will make possible:
 Creation of conditions for the sustainable development of
agriculture in the Chuvash Republic
 Reduction of risks of fires in peat bogs
 Increase of population employment rate in the sphere of
peat extracting and processing as well as in agriculture
 Positioning of the Chuvash Republic as the region planting
ecologically clean products
12
Investors are invitedInvestors are invited
Corporation of Development of the Chuvash Republic, JSC
General Director – Anatoly Danilov
Email: anikdan@mail.ru
Tel: (8352)62-05-50

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Peat processing and production of soil modificator for agriculture

  • 1. Creation of industrial complex forCreation of industrial complex for extraction and complex waste-freeextraction and complex waste-free processing of peat with acquisition of soilprocessing of peat with acquisition of soil modificator «AridGrow» for production ofmodificator «AridGrow» for production of environmentally clean agricultural productsenvironmentally clean agricultural products 1
  • 2. Factors of success of the project 2 Population increase The limited area of arable land Erosion, salinization, desertification of soil Increase in fertilizer consumption up to 14% annually Increase in fertilizer prices up to 30% annually
  • 3. Structure of the object Peat extracting section: Milled peat 600 thousand m3 per annum 3 Fuel and energy complex: Electric power Energy resources Diesel fuel Fish breeding complexes Peat processing section: Soil modificator: 480 thousand м3 per annum Pelletized soil conditioner :15 thousand tn per annum Bioadditive : 72 thousand м3 per annum The boundaries of the project Prospects of development
  • 4. Peat in the Chuvash Republic 38 peat deposits 656 ha Total geological reserves of peat 10038,5 thousand tn With relative humidity of 40% 50129 thousand м3 4
  • 5. Advantages of fertilizers - soil modificators  In short terms create self-renewable sustainable fertile soil system  Reduce pollution degree and soil salinity  Reduce irrigation water consumption by 3-4 times  Completely replace synthetic mineral fertilizers  Minimize soil revegatation costs when preparing planting area (with 20-40 $ / m2 up to 1-2 $ / m2)  Increase survival rate of plants transplanted  Increase crop capacity by 30% 5
  • 6. Projects and resultsThe territory of Sakhir in Bahrain 6 Cucumber plantation «AridGrow» (Qatar) Lawn grass (United Arab Emirates, Qatar, Bahrain)
  • 7. Commodity market of soil modification fertilizers 7 Volume of world consumption of fertilizers – 70 млрд.$ Persian Gulf countries– 21,2 bln $ (106 mln м3) Russia External market Internal market Main consumers of soil modification fertilizers: Kingdom of Bahrain Qatar Iran Jordan Interested in buying: Egypt China Turkmenistan Kazakhstan
  • 8. Project performance evaluation Main indicators of the project performance evaluation (2012-2018 years): Net Present Value of the project (NPV) 14,9 mln. EUR (596,5 mln. RUR) Pay-Back Period of the project (РВР) 5,5 years Internal rate of return of the project (IRR) 54,8% Profitability of sales under the project 36,71 % Net profitability under the project 27,34% 8 Project cost 32.25 mln. EURO (1290 mln. RUR) Attracted investment 24 mln.EURO (893 mln. RUR.) Number of new jobs 154
  • 9. Risks of the project  Changes in the USD exchange rate  Risks connected with specificity of deliveries to the Gulf States  Political situation in the world  Legislative risks connected with imposition of export customs duties  Increase in freight tariffs for transit by railway and sea shipping 9
  • 10. Advantages of the Chuvash Republic in the project implementation  Availability of peat deposits with peat reserves of appropriate quality and quantity  Availability of stock-farms and poultry farms on the nearest territory (supply of primary products for additive production)  Developed transport infrastructure  Competitive salaries 10
  • 11. 11 Project implementation will make possible:  Creation of conditions for the sustainable development of agriculture in the Chuvash Republic  Reduction of risks of fires in peat bogs  Increase of population employment rate in the sphere of peat extracting and processing as well as in agriculture  Positioning of the Chuvash Republic as the region planting ecologically clean products
  • 12. 12
  • 13. Investors are invitedInvestors are invited Corporation of Development of the Chuvash Republic, JSC General Director – Anatoly Danilov Email: anikdan@mail.ru Tel: (8352)62-05-50