Dear all this is where EPG is going I assume after the AGM lets see how accurate I am on the numbers!. This allows them to survive to fight another day, but I just hope they get an experienced EPC contractor who is not going to stuff it up like the drilling !
European Gas is conducting a feasibility study to build a 25MW power station at Avion. It will use approximately all of the gas they produce today + the extra they will also need to produce.
I estimate that total gas production based on their numbers and the fact that they can double production to about the following or 3.6 Pj. PA.
M3 GJ MWh 93,600,000 3,600,000 1,000,080
Gas usage based on .4m3 used per 1kwh for the gas engines (so not much left over)
M3 GJ MWh 87,500,000 3,388,175 962,500
This will provide an approximate return of Sales of 12.1 Million Euro PA EBITDA of 8.8 Million Euro EBIT of 7.8 Million Euro NPBT of 6.4 Million Euro Operation & Maintenance expenses of 4 Million PA Capital Cost 17.5 million Euro on a 10 year amortized loan IRR 54% Payback 2.5 years Interest cost 7% Electricity Feed in tariff 70 Euro per MWh Peak 73% production Electricity Feed in tariff 35 Euro per MWh Off Peak 27% production Energy conversion ratio .4m3 used per 1kwh
Note:- This is based on a professional model that I use to feasibility studies for the same type of plant in the biomass energy business .
This does not assume any credits for CERS (Carbon Credits) which if we use the methodology used in China for CMM production created by EcoSecurities Group PLC which might produce the following extra revenue.
CERS Per annum Price per CER Euro $ Euro 1,666,667 23 38,333,333
However I am not sure if this can also be claimed or not or is implicitly included in the feed in tariff. Still trying to find out.
