The Komi Republic (KR)is the subject of the Russian Federation, a part of the North-West Federal District.

Area - 416.8 thousand sq. km.

Population - 900 thousand people

8 cities and 12 districts in the KR

Distance from Syktyvkar to Moscow is 1410 km.

Syktyvkar is the capital of the KR.

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The Komi Republic is the largest forestry area and has a huge potential.

The goal is to reduce the amount of wood waste and use it as fuel.

According to statistics, the annual amount of wood waste is 500 000-600 000 t/year.

According to expert estimates - not less than 1500 000 t/year.

It is planned to construct 11 sites for temporary storage of wood waste in 10 municipalities of the KR (2014-2016)

In relation to these sites will be developed briquette / pellet production.

The Botanical Garden is the structural subdivision of the University, located within the city limits, in 4 km distance from the city center.The Botanical Garden was established in1974 г. The area is 31,95 ha.

Scientific laboratory Seed –testing laboratory

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Scientific laboratory Seed –testing laboratory

At present, the heating of scientific and seed-testing laboratories is carried out by a boiler, located in the building of the scientific laboratory. The total heated area is 300 sq. m.The cast-iron sectional boiler was installed in 2003.Due to the inability to maintain a comfortable indoor temperature and regular operation of the boiler , is needed to replace and repair the heating system.

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Existing problems Option 1 Option 2

The boiler has reached its life expectancy

Installation of another boiler with forced air supply.

Installation of the pellet boiler with automatic fuel supply

Wear of heating systems and heating devices

Replacement of heating main pipes, replacement of cast iron radiators for aluminum.

Replacement of heating main pipes, replacement of cast iron radiators for aluminum.

Wear of collector and its insufficient capacity

Reconstruction of the boiler with the installation of the collector, the installation of the expansion tank.

Reconstruction of the boiler with the installation of the collector, the installation of the expansion tank

Insufficient height of the chimney.

Replacement of the horizontal and vertical section of the chimney.

Replacement of the horizontal and vertical section of the chimney.

RESULT Investment – 480 000 rb. (6 487 EURO).Operational – 230 000 rb. (3 109 EURO).«-»Efficiency – 75-80 % (depends on the fuel humidity).«-» The use of wood fuel without pretreatment.«-» The manual loading. «-» Heating of buildings in existing infrastructure.

Investment – 685 000 rb. (9 257 EURO).Operational – 185 000 rb. (2 500 EURO).«+» Efficiency– 85-95 %«+» The use of more energy-intensive materials.«+» The automatic supply of raw materials.«+» The possibility of expanding the heating system and connection of new infrastructure.

1 EURO = 74 rub.

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Criteria for modernization:1)Providing a comfortable indoor temperature for the staff and visitors of the Botanical Garden.2)Economic feasibility of use, with the prospect of expanding the infrastructure of the Botanical Garden and heating network.3)Use of modern energy-saving technologies.4)The presence of an educational element - ecological education of the population, promotion of bio-energy boilers.5)State and regional priorities for bioenergy development.

Based on these criteria, the second option is preferable.

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Pellet boiler

Chimney

Collector

Aluminum heating devices

Expansion tank

Сirculation pump

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Activity Cost (rub) Cost, EURO

1. Design and planning 17 500 237

2. Management of the project 24 500 331

3. Equipment and materials:-purchase and delivery of boiler equipment- purchase and delivery of additional equipment- procurement and supply of materials for boiler room

466 000 6 297

4. Construction and installation work: - assembling of boilers  -arrangement of boiler room

137 000 1 851

5. Training for staff 15 000 203

6. Commissioning works 25 000 338

Total investments 685 000 9 257

1 EURO = 74 rub. 9

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Name and activity Before , rub./year (EURO/year)

After project implementation, rub./year

(EURO/year)

Purchase of fuel 93 500 (1 264) 185 000 (2 500)

Salary of workers for maintenance and repair of buildings

133 500 (1 804) 0

Transportation costs 3 000 (41) 0

Total 230 000 (3 109) 185 000 (2 500)

After the project implementation and use of wood pellets, produced in the KR, operating costs will be reduced by 45 000 rub./year (609 EURO /year), annual savings will be 45 000 rub. (609 EURO).

1 EURO = 74 rub.

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Economic life 10 years

Payback period 4,5 years

The net present value (NPV) 245 000 rb. (3 310 EURO)

Internal rate of return (IRR) 18 %

Profitability Index (PI) 1,2

1 EURO = 74 rb.

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CONTACTSCONTACTS::Boos AnastasiyaBoos Anastasiya

E-mailE-mail: : aaboos10@gmail.comaaboos10@gmail.comMobMob.: 8 904 27 23 163.: 8 904 27 23 163

Tyupenko TatianaTyupenko TatianaE-mail: E-mail: tatyupenko@mail.ru

Mob. 8 912 86 97 497Mob. 8 912 86 97 497