Investment Project for Production of Fuel Briquette

Main project idea: organizing the reprocessing of wood chips into ecological bkb fuel by using high-tech equipment and accessing both domestic and foreign markets. Own know-how will be applied for the processing of raw material (old wastes).

Date of summary 29.03.2010
1. About the Project Author
Name
Birthday
Address
Contact Ryzhov Alexander Nikolaevich, born 30.05.1971,
Arkhangelsk Region., Koryazhma city, 26-17 Kirov Str.
Mob. Tel. +7-960-001-25-09
Home Tel. (8-818-50) 3-16-55
e-mail: lesnik1971@bk.ru
2. Project Title: Starting fuel briquettes production
3. Project management
The production will come from a newly established enterprise. Located in the south part of the Arkhangelsk region, a region with high concentration of wood processing enterprises, close to transportation lines. At the initial phase salaried professionals will be utilized (accountant, lawyer). During the production phase, a full capacity and a payback period, the pre-arranged agreements with the equipment supplier regarding the realization of the product output are to be fully met. In the future access to foreign markets is possible.
4. Business idea.
MAIN PROJECT IDEA: ORGANIZING THE REPROCESSING OF WOOD CHIPS INTO ECOLOGICAL BKB FUEL BY USING HIGH-TECH EQUIPMENT AND ACCESSING BOTH DOMESTIC AND FOREIGN MARKETS. OWN KNOW-HOW WILL BE APPLIED FOR THE PROCESSING OF RAW MATERIAL (OLD WASTES).

5. Product
Type of the production output: "briquettes" – a perfect environmentally friendly fuel obtained through a highly refined method of compressing wood waste at pressure. This product has cylindrical form and is compressed through extrusion of the dried, pre-chopped, raw material, as well as of sawdust, shavings, chips, etc. It is often called "dry fuel”, because its humidity is up to 10%.

Current status of the project:
There are: a business plan, preliminary agreements with suppliers of equipment and technology, as well as agreements regarding the source of raw materials and the implementation of the project. For the moment there are no competitors in the region. Required is 100% investment, equity participation of investors in the project is possible.

6. Intellectual property
It’s possible to apply unused processing techniques for recycling the unsold raw materials (old) that in turn give unlimited volume of raw materials.
The Market
With the increase of energy prices the demand for alternative sources is steadily raising. The main consumers of biofuels are Denmark, Germany, Austria, Sweden, Poland, the Baltic countries. There are some opinions that the fuel briquettes produced in Eastern Europe will not be in demand in overseas markets. Of course, this is not true. The demand for fuel briquettes outstrips the supply, and there’s a tendency of constant growth. Practically, there’s no competition. Let us just mention that the European consumer is accustomed to high-quality goods, which refers to the briquettes as well. Note that the briquettes, in all its characteristics, are not inferior to Western standards. The price of the briquette type Piny & Kay is highly competitive and slightly higher than other types of briquette. Of great importance is the outer surface, the absence of contamination in the whole smooth cut briquette. The octahedral shape of the briquette is the most efficient one for packaging and storage.

Interested investors can contact us on Merar.