Raport bieżący nr 56/2018
ENEFI Energy Efficiency Plc. (“Company”) hereby informs its Honourable Investors that it
shall participate in the implementation of two projects supported by the European Union:
The budget of the PAN-LNG and the Clean Fuel Box projects is EUR 17 million and EUR 11.6
million respectively supported in 85% by the Innovation and Networks Executive Agency
(hereinafter referred to as “INEA”, Managing Authority).
The projects have been threatened recently, the initially pre-financed tenders became postfinanced
during the implementation and the participants of the project failed to organise
financing thus the implementation fell into severe delay.
INEA eventually did not approve the extension of the term of PAN-LNG project and Clean
Fuel Box project also fell into severe delay.
Every project member supports the participation of ENEFI in the projects.
In addition to professional participation, the Company is ready to provide significant
financial help to close the projects successfully. The Company had previously provided HUF
100 million loan credit to Pannon Fuel Kft. (E-Star ESCO Kft.) playing a leading role in the
projects and previously belonging to the corporate group thereof which may be followed up
to HUF 300-400 million by the participation in the project.
On the basis of the agreement between the parties, ENEFI Plc. shall acquire 20% share in
Pannon Fuel Kft. for HUF 500,000.
The management of ENEFI Plc. see great potential in participating in the projects;
nevertheless it must be made clear and pointed out that investment in the projects is
expressly risky due to the status of the projects.
The management of ENEFI Plc. shall initiate to convene the General Assembly of the
Company soon so that the shareholders discuss the changed strategy of the Company.
The Company had previously considered participation on the CNG and LNG market however
the management delegated by the major shareholders at that time refused the idea. The
past period has made it clear that it is not possible to purchase large numbers of own shares
(particularly in the manner acceptable by MNB (Central Bank of Hungary), i.e. cheaper than
the market price), nevertheless the Company has significant free funds which the
management wish to utilise thus they decided the above participation.
Please read the following brief description of the planned project by Pannon Fuel Kft.
“About the PAN-LNG Project
In the PAN-LNG Project the liquefied natural gas (LNG) is transported to the 5+1 LNG, L-CNG
filling station which shall serve as distribution points for the CNG filling points (CFB project)
addition to filling vehicles.
The tasks of the PAN-LNG Project also include supply for LNG-fuelled vehicles in the initial
period. The primary consumers shall be heavy vehicles including semi-trailers. International
companies sensitive to CO2 footprint and environmental load are expecting to replace their
Hungarian fleet to LNG-fuelled vehicles. The number of companies entering the system as
consumers shall exceed 20 and the size of the fleet of vehicles involved shall be between 500
About the Clean Fuel Box project
The CFB project aims to widely demonstrate an innovative product among real
circumstances, which is capable of eliminating the severe deficiency of the CNG filling
infrastructure which can be constructed along motorways and in towns and thus traditional
so the launch thereof to the market fills a gap. It provides the possibility to install filling
infrastructure for compressed bio- and natural gas fuelled vehicles in locations where this is
not provided by the gas distribution network or where possibilities are limited.
The CNG Clean Fuel Boxes (CFB) are compact, self-service filling boxes with LCNG (Liquefied-
Natural Gas) technology capable of refilling CNG vehicles quickly and without environmental
noise 7/24. Installation of prefabricated boxes fitting in the urban environment shall take
only one or two days which is a significant difference from the previous project terms even
over a year’s period. Installation of CFB filling stations is faster and cheaper than that of
traditional compressor stations. There greatest advantage or filling points however is the
possibility of placing them in a market-oriented manner taking traffic into consideration.
They can be installed in the needed numbers even temporarily wherever the expected traffic
requires. The stations shall be monitored and refilled by an operational system working with
a central dispatcher service and a “smart IT” system.
The mini filling stations shall have unique innovation content. In order to spread the
development which is in line with European strategic interests, the agency of the European
Union responsible for transport development and innovation, INEA supported the
development and spread of the demonstration network with EUR 9.9 million.
The filling stations themselves may be defined at a product level and they shall represent
significant commercial/service value in the future in a “package” together with their
operational background. The LNG distribution background is a required element of the
service package which may also be implemented by the development of Pannon Fuel Kft.
thanks to the EUR 14.5 million support awarded by INEA.
CNG, the alternative fuel for light vehicles and locally used heavy vehicles
CNG means methane gas compressed to 200 bars which may be originally natural gas or
alternatively produced so-called associated gas. Furthermore it may be produced from
renewable sources since methane gas constitutes an important element of biogas production
and it is suitable for fuelling vehicles after purification. Methane, with the chemical formula
c.4. , offers the most favourable of all hydrocarbon molecules to produce the least harmful
materials in the combustion chamber and the least greenhouse gas emission of CO2. It may
cause up to 10% less exhaust CO2 emission than diesel engines and approx. 25% less than
petrol engines. In case of methane from renewable sources the amount of greenhouse gas
emitted to the atmosphere may be even lower depending on the base material and the
technology used, even close to zero. The PM (PM10, PM2.5 too) solid particle emission of
methane-fuelled engines is close to zero, their NOX emission is below the limit specified in the
provisions of the very strict EURO6 regulations in force since the middle of the decade. The
significantly (up to 5 dB) lower operational noise level in commercial vehicles and buses
means less than half of the noise load.
CNG-fuelled cars shall come into the foreground
Banning the use of diesel cars in the traffic has been on the agenda for years in several cities
in Western Europe thanks to the fact that decision-makers have recognised: by making the
emission limit values stricter, only the procurement price of vehicles becomes higher but the
problem of poisoning diesel pollution shall not be eliminated. On the basis of measurements
in Miskolc, the NO2 emission of CNG-fuelled buses was 99 percent lower than modern diesel
buses. Moreover, our country is facing a great challenge in the reduction of the CO2 emission
of transport, to which natural gas and biogas based fuels provide the most economical
solution for individuals as well as our entire society. CNG driving means clear and affordable
operation either for passenger cars, buses or either commercial vehicles. CNG is equivalent
with exactly 1.5 litres of petrol, i.e. a car consuming 9 litres of petrol shall consume no more
than 6 kg of gas however the gas may optimally provide much better efficiency due to its
nearly 120 octane quality. We can see on our own medium category vehicles that 4-4.5 kg
CNG consumption is realistic in urban environment.
LNG, the alternative fuel for heavy vehicles
Not only low pollutant emission supports the use of LNG for transport purposes but also the
possibility of applying the most effective process of using bioenergy. Attractive cost of
operation is an advantage against traditional fuels. Natural gas has an increasingly
significant price advantage against diesel oil on the market of fuels, as a result of which all
future forecasts project the growth of the distance between the import price levels of crude
oil and natural gas.
LNG is cheaper and clearer than LPG
Hungarian car owners often think of LPG (also called car gas) in relation with gas-fuelled
transport, which is primarily produced during the refining of crude oil as a widely used
alternative to traditional petrol. LNG is cheaper and clearer for transport which is actually
liquefied natural gas obtained by cooling down to -161 degrees Celsius. LNG primarily
originates from the natural gas fields where the producer is not connected with the consumer
by a pipeline, however natural gas can be obtained from these production sites at a much
lower price than the natural gas purchased through the traditional import routes arriving on
the pipeline network constructed by huge development costs and the price of which is fixed
to the price of petroleum product by a long--term agreement. The volume of the gas is
reduced to the minimum by liquefaction, thus it can be economically transported to great
distances, even between continents.
Biogas may also be the basis for LNG
CH4, i.e. methane gas arriving as the main component of fossil natural gas is also the main
component of the renewable biogas produced by the fermentation of organic materials.
Anything may be the source of biogas, e.g. the wastes of forestry which can hardly be used
for anything, the plant waste of agriculture as well as the energy crops produced on unused
territories, excrement from animal husbandry, waste from foodstuff processing or even the
organic material from human communal waste or the sewage sludge from sewage
purification to be treated. These biogases contain 35.5-65 % of methane so they carry
significant caloric value potential. The usable amount of this potential in Hungary is approx.
50 PJ, which is approx. one quarter of the total energy consumption of transport. The 1-2% of
components harmful for the internal combustion engine and the additional inert gases can
be separated from biogas by a simple purification process to the required extent. The clear
methane gas remaining after liquefaction can be sold to transport with the highest profit.
But in addition to large fleets it may also be the reasonable and self-sustaining fuel for local
agricultural machinery and transport vehicles so the use of biomethane may significantly
improve the living standards of smaller agricultural communities.
|PODPISY OSÓB REPREZENTUJĄCYCH SPÓŁKĘ|
|Data||Imię i Nazwisko||Stanowisko/Funkcja||Podpis|
|2018-10-17||Csaba Soós||Board of Directors|