1 Biofuel plants in Russia 2001-1 biofuel plant (Biotoplivo Gatchina) 2002-2-3 plant 2003-6-7 plants 2004- 13-15 plants

ants 2005 - 28 biofuel plants as of the end of the year 2006-45-50 biofuel plants all over the country 2007-100-110 biofuel plants 2008-160 biofuel plants. The volume of private investment is upward of 250 million euro from 2001. 2. 3. Geographical location of Smolensk region. 4. Execution period Estimate of raw material source Development of a feasibility study and business plan Selection of suppliers and contractors Manufacturing of equipment Equipment installation Commissioning operations and attainment of project capacity 5. Financial success of a plant for production of biological fuel depends on raw material base. In this case raw material case is: Refuse wood (sawdust, shred, wood chips); Cull lumber ( thinning, pulpwood); 1 month 1 month 3-8 month 4-10 month 6-12 month In 2003 Russia exported only 8000 tons of fuel pellets In 2005 production volume was 50-60 000 tones In 2006 production volume was 400 000 tones In 2007 production volume was about 500 000 tones Now production volume is still increasing.

 Agricultural wastes (husk, peel, straw compost and so on) Peat; Household wastes; Municipal wastes; Other sorts of biomass. 6. Quantity of raw materials For production of one tone of fuel pellets it takes: About 2 tons of refuse wood with 60 per cent of humidity; 2.5 cubic meter of trunk wood; 7-8 cubic meter of bulk refuse wood; Please, turn your attention that wood wastes are also used as fuel for a dryer. 7- 8 Quality of raw material Quality of fuel pellets depends on quality of raw material by 80-90 per cent. Humidity Capacity of drying installation, Energy demands of drying Investment in processing unit(separation, chipping) Energy demand Quality of an end product (ash content) Quality and stability of granular process Output and deterioration of equipment. Energy value of fuel pellets The more humidity of raw material is the more cost of manufacturing increases The smaller fraction is, The cheaper and easier production becomes.

Fraction composition

Species composition

Energy value

The harder wood is, the lower output and higher deterioration of equipment and costs of production become. The older wood is, the less energy value it has

9. Material costs Sort of wood refuse ( in decrease order of usefulness) Sawdust, shred Wood chips Pulpwood Thinning, fire wood Slab Bark 10. Supplying over a long period Owned source of raw material Partnership with suppliers of raw materials (share participation, longterm contracts) Lobbying. Cost 0 70 rub./m3 250-900 rub./m3 0-1500 rub./m3 100-500 rub./m3 0-250 rub./m3 0-20 rub./m3