Project Introduction |
A biomass electricity generation company in Anhui is planning to establish a rice hull-fueled biomass power plant on a scale of 1X65t/h boiler plus 1XN12-3.43 condensing turbine-generator unit. Furthermore, the extension possibility of the above scale is available during the second development period. This rice hull-fueled biomass power plant is entitled to benefit from the following favourable policies for country’s biomass electricity generation enterprises:
1. Since January 1st, 2009, the value-added tax will be refundable for those biomass electricity generation enterprises as soon as it is imposed.
2. According to unified attracting investment policy of project area, 1 billion Yuan’s projects could be exempt from income tax for four years.
3. According to State Development and Reform Commission trial implementation method for management of renewable energy electricity price and cost-sharing, for those biomass electricity generation project pool purchase price that determined by the government, benchmarking electricity price is regionally set by competent authority of state council. The standard of pool purchase price set by each province (autonomous region, municipality) in 2005 is composed of desulfurization coal-fired unit benchmarking pool purchase price and subsidy electricity price. The standard of the subsidy for electricity price is 0.25 Yuan per kilowatt. The projects will benefit from subsidy electricity price for 15 years when projects launch. After 15 years, such kind of benefit will be cancelled. Thus, the subsided electricity price in this project =Anhui Standard electricity price (0.38) +0.25=0.63 Yuan per kilowatt.
4. In accordance with the temporary method for management of renewable energy development special fund, interest subsidy loan policy is mainly for the renewable energy development projects that are listed in the guidance category of country’s renewable energy industry, in line with the terms of credit. Furthermore, the arrangement of discount interest is available on condition that bank loan has been prepared and the interest has been paid.
The amount of discount interest depends on the actual amount of bank loan and actual amount of interest payment, with the discount period for 1-3 years. In addition, the annual discount interest rate is no more than 3%.
5. This project will result in seventy thousand tons of carbon emission reduction. The annual income of the CER trading is to amount to EUR 700,000 (or about RMB 7,000,000) on a basis of 10 Euros per ton.
In short, the total investment amount of this project is RMB100, 860,000. At present, all the approval procedures have been completed. Due to lack of funds, additional capital investment is to be introduced in this project, which is amounted to RMB 45,000,000. The project is planned to established within one year and make profit in the second year. The internal rate of return is expected to be in the range of 18% to 24%. For a detailed business plan and relevant materials, please don't hesitate to contact us |