AS ASTAR ARTA Energy ergy efficiency iency and bioenergy energy - - PowerPoint PPT Presentation

AS ASTAR ARTA

Energy ergy efficiency iency and bioenergy energy oppor

• rtunit

tunities ies

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AS ASTAR ARTA A hist story ry and busi siness ness st struct ucture ure

The Group’s assets locatio ion The Group’s history

• 1993

1993 - foundation of the Group

• 1996

1996 - started agricultural business

• 1999

1999 - first sugar plant in Poltava region

• 2003

2003 – 2005 2005 - four additional sugar plants

• 2006

2006 - Astarta’ IPO on Warsaw Stock Exchange

• 2007

2007 - the Group actively expands by acquiring new agricultural companies and increasing the area of agricultural land in lease

• 2008

2008 - sugar plant and farming assets in Western Ukraine

• 2009

2009 - consolidation of production assets into integrated business units

• 2011

2011 - two sugar plants and agri-assets in Kharkiv region

• 2012

2012 - initiated soybean processing and biogas generation projects

• 2013

2013 - sugar plant in Poltava region, commissioning of soybean processing and biogas plants

Khmel elny nytsky region ion

• Narkev

evychi i suga gar plant nt 6.600 tonnes/day Vinny nnytsa region ion

• Zhdaniv

anivsky sug ugar ar plant nt 3.500 tonnes/day

• Kobely

lyak aky suga gar plant 8.000 tonnes/day

• Yaresky suga

gar plant nt 4.500 tonnes/day

• Novoorzhy

zhytsa suga gar plant nt 6.500 tonnes/day

• Globyno

no suga gar plant nt 6.000 tonnes/day

• Veselo

lopodils lsky suga gar plant nt 3.000 tonnes/day Kharkiv iv region

• n
• Novoivaniv

anivsky suga gar plant nt 2.500 tonnes/day

• Savins

nsky suga gar plant nt 3.500 tonnes/day Poltav ava a regio ion

*ASTARTA ‘s business unit usually combines: agricultural land under cultivation, grain storage facilities, machinery and transportation vehicles, sugar plant, forage factory, and cattle farms

Sugar production 60% Agriculture 26% Dairy 11% Other 3%

Cattle farmi ming Sugar production Agriculture

Products: Milk Meat Products: Oil Meal Husks Sugar beet Fertilisers

Biogas Soybean Processing

Husks (as fuel) Wastes Methane Soybean meal Pulp Beet pulp Soybean Feed Products: Sugar Pulp Molasses Biomass Fertilizers Fertilizers

Gross

• ss Revenue

e and d EBIT ITDA A break eakdo down, wn, 2013

• One of the largest agriproducers in Ukraine
• 245 ths ha under management, 100% cultivated
• About 760 ths tonnes of grain and oil crops and

2.1 million tonnes of sugar beet harvested in 2013

• Up to 400 ths tonnes of grain storage facilities
• More than 3000 units of agricultural equipment in
• peration; own transport fleet of 700+ trucks, GPS

precision farming operations

• The biggest Ukrainian public producer of milk with

3% share in industrialized milk production

• Integrated player with own fodder production and

high milk yields

• Total cattle headcount of 31 ths
• 91 ths tonnes of milk produced in 2013

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AS ASTAR ARTA A ma mark rket et posi sition ion and busi siness ness mo model el

ASTAR ARTA business ess mode del Leading ading integ egrat ated d agri-indu industria strial l produce

• ducer
• The largest and cost-efficient sugar producer, 25%

share in Ukraine in 2013

• Sugar output 305 ths tonnes in 2013 campaign
• Nine sugar plants, daily processing capacity

exceeding 43.5 ths tonnes of sugar beet

• High self-sufficiency in beet production and sugar

storage

AGRICU ICULTURE SUGAR R PRO RODUCTION ION DAIR IRY Y FARMIN MING

Revenue ue EBITDA

Industria strial vs. . direc ect t con

• nsu

sumption tion of sugar ar in Ukraine aine

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Ukraini ainian an su sugar ar ma mark rket et over ervie view

Player ers in the sugar ar market, , volum lume Sugar ar prod

• ductio

ion in Ukraine aine Key con

• nsid

sider eratio ations

• Ukraine has high quality land and favorable climate

conditions for sugar beet farming

• Market characterised by continuously increasing

share of industrial consumption

• Upon WTO accession, Ukraine had agreed to a

quota of 270 ths. tonnes of raw sugar to be imported under a 2% tariff rate. Imported sugar above this level is charged with a 50% tariff

• In 2013/2014 marketing year ASTARTA will sell

record high amount of sugar – about 370 ths. tonnes

2012 2012 2013 2013

25% 30% 35% 40% 45% 50% 55% 60% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2,0 2,6 1,9 1,6 1,3 1,5 2,3 2,2 1,2 0,0 0,5 1,0 1,5 2,0 2,5 3,0 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bioene energy rgy plant nt

Wast ste-to to-ener ergy oppor

• rtuniti

ities es

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• The processing

cessing capacity y is s 1 200 tonnes nes of beet et pulp p per day

• Daily

y capacity ty for biogas as produ ducti tion

• n upto 150 000 м³
• Biogas

as is replaci cing up to 50 % of natura ural gas used d by sugar r plant nt

• Producti

uction n of 250 0 tonnes nes ferti tilize zers s per day

• Positi

tive environm

• nmental

ental effect ct due to closed d cycle of productio duction, , reducti ction n of natura ural gas consum sumpti ption

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Bioeth ethanol anol proje ject ct at AS ASTAR ARTA

• ASTARTA's potential synergetic model for

Globino foresees combination of Sugar r fa factory y + B Biogas as fa factor

• ry

y + Bioetha ethano nol fa factor

• ry
• Biogas factory to utilize 100 % of wastes from

Sugar and Bioethanol factories Key features: tures:

• Own feedstock – beets, sugar juice, green

syrup, molasses

• Distillery waste utilization by methanization

facility

• Modern distilling technology with lower

energy consumption (proposed by Maguine)

• Cheaper source of energy – biogas from beet

pulp methanization

• Product:
• duct: Componen
• nent

t Mot

• tor
• r Fuel

l Alter ernat ativ ive

• Daily

ly produc

• ductio

ion: : 10 000 dal (80 т)

• Daily

ly molass lasses s con

• nsu

sumption tion 335 т

• Daily

ly biogas

• gas con
• nsu

sumption tion 30 500 m3

• Working

ing days s 3 330 Key techn hnica ical l param ameter ers for bioe

• ethan

hanol

• l proj
• jec

ect Bio-or

• rgan

anic ic proj

• jec

ects s of ASTAR ARTA

• Soybea

ean inoc

• cula

lants, ts, liquid id:

• Stubb

bble le destructant structants

• Biolo
• logica

ical fungic icid ides es

• Probio
• biotic

ics

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Way fo y forward ard

Key features: tures:

• Pulp is processing 90

90-100 00 days of sugar production campaign

• Complex will be utilizing wastes 230 days out of sugar campaign and produce biogas for local needs -

built oil extraction plant and future bioethanol plant.

• Sugar beet pulp, beets peaces, leafs, corn harvest leftovers, bioethanol distillery stillage, pretreated

wood chips (R@D stage) can be used as raw material for biogas complex out of sugar season

• Strategic development options are:

 the construction of bioethanol plant to fulfill the synergy with sugar plant and biogas facility Construction of second biogas pipeline to oil extracting factory and biogas driven cogeneration units installation

• Project CAPEX is approximately 25

25 – 30 million n EURO

2014 14 Synergy ergy

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Waste water cleaning Water pond molasses, green syrup SUGAR BIOETHANOL soya beans beets Soya oil, protein feed (no GMO)

2015 Synergy

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Present R@D directions of the company

Fast growing poplar as a source of cellulosic biomass

C6 + C5 sugars Second generation bioethanol Depolymerized

• rganics

BIOGAS Cutted and branches cleaned trees Raw material for paper production Wood wastes, bark and branches Syngas, Furness oil

Enzymatic hydrolysis catalytic treatment fast pyrolysis mechanical

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Green goals and targets of Astarta

1) Reduction of natural gas, coal, lime and water consumption per ton of processed beets at company’s factories. 2) Replacing natural gas with green biogas at company’s factories - 50% at Globino sugar factory season of 2014 and 80% replacement at oil extracting factory in Globino starting 2015. 3) Production of green electricity, steam and heat at company’s factories. 4) Replacement of mineral fertilizers with green fertilizer after anaerobic process. 5) Lower the water consumption balance by returning cleaned water back in to the lake. 6) Consider biogas as source of energy for green electricity, heat and steam production in bioethanol factory of first generation. 7) Waste utilization in anaerobic reactors and usage of biogas for heat and electricity production gives any factory green points and half step up in generation. 8) Earning a CO2 quotes, by consuming volumes of it, while growing poplar.

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Directions ections of cooperatio eration n bet etween een FAO, , EBRD RD and nd ASTAR ARTA

ASTARTA’s cooperation with FAO and EBRD

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• Accessing

sing qualit lity y exper ertise tise

• Excha

chang nge e experien erience

• Pa

Partici ticipat pation ion in round table bles, s, conferen rences es

• Training

aining program grams s for specia ciali lists sts

• Finan

ancin cing g program grams

Manag aging ing ecolo

• logic

ical l risks s

Co Corp rpora

• rate

e so social l res esponsib

• nsibili

ility

Addr Address ssing ing soc

• cial

ial probl

• blem

ems

• ASTARTA is an active member of the UN Global Compact:
• In January 2008, ASTARTA joined the Global Compact
• f the United Nations
• By signing this Compact, our Company committed

itself to adhere to, support, and implement basic values in the areas of human rights protection, employment, environment protection, and fighting corruption as part of its operations

• The Company develops social infrastructure in those

areas where its enterprises operate, and is concerned with improving the wellbeing of the community:

• In 2009, we initiated signing Social Responsibility

Agreements with the municipalities where our production assets are located

• Under these agreements, the Company committed to

assist those municipalities in developing their social programs and public infrastructure

• ASTARTA implements energy efficiency programs aimed to cut

natural gas consumption at its sugar mills

• The programs’ realization is to provide the following results:
• decrease in sugar prime cost by means of efficiency

increase

• quality improvements by means of application of more

advanced production technologies and

• decrease in pollutants and emission of green-house gases

into atmosphere

• As Ukraine is an active member of the Kyoto Protocol, the

Company signed an agreement with the Multilateral Carbon Credit Fund (MCCF) established by the EBRD and the EIB, to sell carbon credits

• The agreement, which covers the carbon credits generated

during the period between 2008 through 2012, is the first deal of the MCCF in Ukraine

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THANK YOU FOR ATTENTION!

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