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Manufacture
of Artificial Humus Kharkov, 2001 Summary IIEST proposes mutually advantageous collaboration with organizations and private persons wishing to invest in plant to manufacture a highly effective fertilizer - an artificial humus: "Extra". We have good reasons to assert that "Extra" is one of the best and the cheapest fertilizers in existence. The fertilizer is produced by a unique industrial process, and it has a broad spectrum of beneficial agronomical properties and the ability to enable high crop yields to be produced. It will ensure a considerable profit to all participants in the enterprise. The strategic aim of this project is to establish a firm position on the world market for all its participants, and to create a network of enterprises producing "Extra" and supplying sufficient amounts of it at acceptable prices. A sample of "Extra" may be sent upon request. TECHNICO-ECONOMIC CHARACTERISTICS OF THE "EXTRA" FERTILIZER PROJECT (UNDER CURRENT CONDITIONS IN UKRAINE)
1. The
output of the production line, tons per hour: - 4.0 CAPITAL INVESTMENT 1.
Technical preparation of the production process, $
-
39,690 In all: $ 765,880 1. Main characteristics of the product The artificial humus "Extra", being a model of natural humus, is a fundamentally new fertilizer, having no match on the world market. "Extra" has exceptional agronomical properties, making it indispensable in every sphere of plant-growing. "Extra" is made of mixed cattle manure and litter, and the process allows a large proportion of plant remnants (straw, shavings, sawdust, etc.) in the raw material. The manufacturing technology is based on natural processes of humification of plant remnants, intensified by modern chemical methods. As a result, the characteristic time of these processes has been reduced to several tens of minutes, making it possible to organize industrial large-scale production of the fertilizer. The main advantages of "Extra" application are:
- formation of a fertile layer in soils ill-adapted for farming; The "Extra" fertilizer ensures:
- obtaining reliably high crops yields over the course of several years
(being introduced into the soil only once, in small quantity); "Extra" fertilizer is a homogeneous substance of dark- brown color, its density being 0.3 kilograms per liter (under 10 % humidity). It is produced as powder or granules containing a full set of nutrients, trace elements and more than 90 % humus substances (see: Appendix I). The active substrate of "Extra" consists of macrocyclic complexes of polyphenols, melanins, and other biopolymers incorporating ions of complexing metals - iron, calcium, magnesium, manganese, molybdenum (in trace quantities), etc. Due to its specific molecular structure, when in the soil the fertilizer is well protected against attacks by soil micro-organisms, keeping its activity for a long time. As a matter of fact, its mass diminishes at the rate of only 15 % per year - whereas the mass of ordinary manure diminishes at the rate of 80-85 % per year. Moreover, "Extra" serves as a catalyst for the natural formation of humus from post-harvest remnants and products of the natural metabolism of plants. The fertilizer does not contain any living seeds of weeds, nor pests in any stage of their existence. "Extra" is introduced into the soil once per three years at the rate of 3-5 tons per hectare. 2. Manufacture of the "Extra" fertilizer 2.1. Technology "Extra" is produced in the following sequence of operations:
- grinding the raw material; 2.2. Equipment The production line includes the following equipment: disintegrator; reactor; centrifuge; granulator; drier; packing unit; power unit; control block. 2.3. Technical characteristics of the equipment The output of one production line: 4 ton per hour. Required power - 200 kW. The energy consumption to produce one ton of the fertilizer - 20-25 kWh. Quality of the product is controlled by measuring its magnetic permeability and comparing it with a standard sample. Each batch of "Extra" is certified according to international standards by an expert laboratory. 2.4. Patentability and innovativeness of the product Our know-how includes compounding of the fertilizer, original methods of complexing it with ions of iron, calcium, magnesium, and other chemical elements, as well as an original design of the equipment. 3. Operating personnel The production line is operated by 47 people working in two shifts:
Shop superintendent - 1 specialist person. 4. Production expenses According to Ukrainian laws, production expenses consist of the following items: Capital investments (in US dollars):
1. Technical preparation of the production process - $39,690 In all: $ 765,880
Running expenses per year (in US dollars):
1. Salary of attending personnel - $ 90,200. In all: $ 1,084,320 5. Necessary investments To put the project into practice, it is necessary to invest a sum equal to the whole amount of the capital investments, plus one third of the yearly current expenses: $ 765,880 + $ 1,084,320/3 = $ 765,880 + $ 361,440 = $ 1,127,320 6. Recoupment of the project expenses For an eight-hour working day, two shifts per day, 21 working days per month, 10 months of technological operation of the production line, and its productivity 1 ton of the fertilizer per hour, the yearly output will be: 4 x 8 x 2 x 21 x 10 = 13440 tons per year With a minimal selling price of $ 300 per ton, the yearly gross receipt will amount to: $ 300 x 13440 = $ 4,032,000 Given that the amortization period of the capital investment must be less than one year, the estimated production cost of "Extra" during this period will be: (765,880 + 1,084,320)/13440 = 137.66 » $ 138 per ton The net profit from the realization of the yearly production amount will be equal to: (300 - 138) x 13440 = 162 x 13440 = $ 2,177,280 After achieving the full projected capacity of the production line, the estimated time to recoup the investment is: (765,880 + 361,440)/2,177,280 = 0.52 year = 6.2 months The first batches of "Extra" will be produced four months after receiving the initial part of the investments. Two months more are needed to achieve the full projected capacity. Receipts of the investments, making up the circulating assets, and return of the investments are planned according to the following schedule:
Thus, the invested capital will be completely returned to the investor(s) in the 20th month. After that the net profit will be distributed among the participants of the project according to the agreement between them. After complete returning the invested sums to the investor(s), the production cost of "Extra" will naturally come sharply down - since it will depend only on current expenses: 1,084,320/13440 = $ 80.68 ÷ $ 81 per ton The net profit meant to be distributed, beginning with the 21st month, between the investors, manufacturer, and authors of the inventions used in this project, will amount to: [(300 - 81) x 13440]/12 = $ 245,280 » $ 245,000 per month 7. Possible sales markets The closest analog of "Extra" existing on the world market is so-called biohumus, made from the same raw materials, but processed by the culture of Californian worm. "Extra"'s advantages, distinguishing it from biohumus, are as follows:
- content of humic substances is as great as 91 % (as against 18 % in
biohumus); Biohumus cannot be produced in large amounts using a mechanized and automated technological line; that is why it costs up to $ 500 per ton. "Extra" may be half the price, and is therefore highly competitive. Another analog of our fertilizer - the meliorant "Ukraina" - is on sale in Ukraine in small amounts. At present it cannot rival "Extra", since a number of technological processes in its production cycle are imperfect and its production cost is too high. The meliorant is not on the world market, only on the Ukrainian one. Conventional composts may be considered as more distant analogs of "Extra" - but they are inferior in every characteristic, even to biohumus. Therefore, at present there is in fact no known fertilizer on the world market that can be compared with "Extra". Having investigated the Ukrainian market, we found out that there was a great demand for "Extra" on the part of individual farmers, but not on the part of big collective farms (since the latter are now, as a rule, insolvent). That is why we must pay most attention to those highly developed and rich countries which are striving to enlarge their areas of fertile land - the USA, Canada, Japan, China, Italy, Greece, Israel, South Korea, etc. In these countries "Extra" may be also used, in particular, when planting trees and shrubs in recreation zones, so that a prospering tourist business can be created. "Extra" has also aroused great interest among forestry enterprises. 8. Possible objects and forms of collaboration The list of possible objects of collaboration between IIEST and potential partners includes:
- technology of manufacturing the "Extra" fertilizer; Appendix I.
Kharkov
State University Certificate of the principal characteristics of "Extra" fertilizer 1. Main parameters of certification Analysis (percentages by weight):
1.1.
Remanent water content, % - 10 2. Additional parameters of certification
2.1.
Strontium, mg/kg - 60 3. Activity of radionuclides (curie/kg)
3.1.
Thorium-232 - 2.0 10-10 Quality of the certified substance meets with the requirements of state standards and specifications. 3.
Contact Information International Institute for Environmentally Safe Technologies
Poznanskaya Street 11b - 88
Phone.: (0572) 63-71-73 Information supplied by the Author May 2001. Page last updated: June 08, 2004
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