Installation of a production line for fuel pellets and a solid fuel water heating boiler for the Teplokomunenergo Commune


Sector
Municipal infrastructure and services
Stream
Improving energy efficiency in public buildings
Maturity level
88
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

It is planned to install a line for the production of pellets from waste from forestry, agricultural and other activities of enterprises in the district. 

The purpose of the project

Main Goal:

Improving the quality of services

Secondary Goal:

Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions

Description of the purpose of the project and ways to achieve it

The project aims to produce thermal energy through the use of cheap biofuel of its own production from wood waste after cleaning urban and forest plantations and crop residues.

Problems and solutions resulting from project implementation

The installed solid fuel boiler KVr (KV) - 2.0 has insufficient capacity to fully provide heat supply services in the event of gas supply outages. The city's municipal services supply the KP ".Teplokomunenergo" with wood waste after sanitary cleaning of urban and forest plantations. There is an opportunity to obtain inexpensive crop residues in the community's farms. The pellet production line will allow the adaptation of raw materials for the needs of the enterprise.

Socio-economic context

Indicator

Value

Number of people who will use the service

6200 human

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Urban planning and landscaping

Stream

Improving energy efficiency in public buildings

Strategic document

Стратегія розвитку територіальної громади

Task

3.3.2 Improving the energy efficiency of existing facilities in the community and introducing alternative energy sources

Project objectives

Project objectives were not specified by the initiator

Demand for the service and its dynamics

Indicator
Year
Demand
Annual demand for services/infrastructure
1
60 t
Economic justification

Documents

Name
Date
6d05f3aa-b3f8-4333-b1fa-59212d172493.pdf
23.09.2025
12:51:36 UTC

Alternative technical solutions

Technical Solution 1

Installation of a fuel pellet production line and a solid fuel water heating boiler

Technical Solution 2

Installation of a solid fuel water heating boiler

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)12'500'000 UAH12'500'000 UAH
For preparation500'000 UAH500'000 UAH
For implementation12'000'000 UAH12'000'000 UAH
Project operation and closure cost1'500'000 UAH700'000 UAH
For operation1'200'000 UAH500'000 UAH
For closing300'000 UAH200'000 UAH
Average annual costs2'000'000 UAH0 UAH
Project duration, incl.36 months20 months
Deadline for developing a FFS8 months4 months
Implementation period28 months16 months
Service life240 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
1
To components
0

Financial justification

Total project budget

Total preliminary budget14'000'000 UAH13'200'000 UAH
Project cost (preparation and implementation)12'500'000 UAH12'500'000 UAH
For preparation500'000 UAH500'000 UAH
For implementation12'000'000 UAH12'000'000 UAH
Project operation and closure cost1'500'000 UAH700'000 UAH
For operation1'200'000 UAH500'000 UAH
For closing300'000 UAH200'000 UAH

Average project cost per service recipient

Service UnitГкал
Service Unit Cost3'850 UAH

Profitability of the project

Is the project expected to generate income?NoNo

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds0 UAH0 UAH
Expected Funds0 UAH0 UAH
Management Rationale

Risk assessment

Financial riskDefinedUndefined

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
02/10/2025SP-L-021025-0E701630Community SPInvestment Feasibility StudyInclude--
25/03/2026SP-N-250326-FFD378EEState SPInvestment Feasibility StudyAwaiting reviewThe project corresponds to the direction "Rehabilitation, modernization and development of centralized and decentralized heating systems" and should be redirected to the appropriate sectoral portfolio-
21/10/2025SPP-L-211025-7F847E2DCommunity SPPInvestment Feasibility StudyInclude-88