Veliko Tarnovo, Bulgaria. Producer of BIODIESEL

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Veliko Tarnovo, Bulgaria Producer of BIODIESEL

5000, Veliko Tarnovo, Bulgaria, 81A Nikola Gabrovski st. Tel:+359 62 634 609, Fax:+359 62 622 429, e-mail:mbox@roi-bg.com

Rapid Oil Industry Co., Ltd. is a young company whose primary area of activity is the use of renewable energy sources and production of biodiesel. Our registered capital amounts to 230 000 EUR.

Created in 2006, the company aims at promoting the use of renewable fuels as an alternative to conventional ones on account of the global climate changes and ecological security. Rapid Oil Industry Co., Ltd. is a co-founder and member of the National Association for biofuels and renewable energy sources Bulgaria. Our representatives are actively participating in the process of adaptation of the european legislation concerning biofuels to the national particularities of our country, as well as the application of the 30/2003 EU directive and the elaboration of a law for the use of renewable energy. The company is also working on building and expanding a national network for retrieving used cooking oils and their re-use for the production of biodiesel. On the 28 th of February 2007 we have been approved as a associate member of EBB European Biodiesel Board, Bruxelles.

The main objective of our company is to offer quality and competitive products manufactured out of renewable energy sources.

The quality will be guaranteed thanks to a quality management system ISO 9001:2000 as well as special routines for quality control and research. Our own accredited research laboratory will carry out control of incoming raw materials, intermediate control and final product control by studying physical and chemical parameters. Our biodiesel will comply with the European standard EN 14214.

The characteristics of biodiesel as an ecological fuel. Its positive impact on the environment. The world trend of using renewable energy sources and the global objective of replacing 10% of conventional fuels used in transport with renewable ones before the end of 2020. The appropriate Bulgarian climate and favourable economic conditions for manufacturing alternative fuels out of oil-yielding cultures in Bulgaria. Biofuels are ecological, which is why they are not taxed with excise as opposed to traditional fuels.

Its properties are comparable to those of the best diesel fuels. It s fully decomposable and ensures a better combustion. Biodiesel allows a better lubrification and extends the engine s service life. Can be used separately or in a mixture with traditional diesel. It s combustion does not generate soot. Reduces the emissions of CO2 in the atmosphere, thus ensuring a full CO2 cycle by using oil yielding plants.

Reduces the noxious emissions of sulphur oxides in the environment and reduces the risk of acid rain. It s produced from renewable energy sources the solution to the problem of the ever increasing demands in energy. Favours the development of agriculture in the country. Reduces the dependence on the import of traditional fuels. Its use allows industrial companies to receive subsidies / dividents for reducing harmful emissions.

Biodiesel is made through a chemical process called transesterification whereby the glycerin is separated from the vegetable oils. The process leaves behind two products: methyl esters (the chemical name for biodiesel) and glycerin.

The biodiesel production process is conducted as a basecatalysed pre-esterification of vegetable oils with low-valent alcohol. The input raw materials for the process are vegetable oils with the following physical characteristics: Oil Iodine Value CN (cetane value) HG(kJ/kg) Sunflower 110-143 37,1 39800 Rapeseed 94-120 37,6 40449 Soybean 117-143 37,9 39623 Palm 35-61 42 39070 Used cooking oils Mainly of vegetable origin

1. Crude oil filters. Their purpose is to remove all mechanical impurities contained in the oil seed particles, peels and residues. 2. Preparation facility (partial refinement) of the crude oil. The oil obtained from the press and the extracted oil have to be degummed, neutralized, dried and eventually whitened. 3. Biodiesel facility. The vegetable oil is transformed in biodiesel through preesterification of triglycerides into methyl esters. The transformation of the oil involves the following stages:

Pre-esterification 1 Pre-esterification 2 Distillation of the methanol Neutralisation Flushing Drying 4. Glycerine treatment facility. The biodiesel production process generates considerable amounts of glycerine which has to undergo adequate treatment.

This treatment consists in the following operations: Distillation of the methanol Neutralisation Concentration The technical glycerine has a wide field of application production of antifreeze, paint industry or as a raw material for pharmaceutical glycerine.

5. The energy necessary for the production of biodiesel is obtained from a boiler working with other fuels. 6. In order to ensure the adequate processing of waste products, the biodiesel plant is equipped with a purification facility which cleans waste waters thus allowing them to be poured directly into the sewerage or to be re-used in the production process.

1. Mixing the alcohol and the catalyser. The catalyser is sodium hydroxide which is mixed with the methanol in a mixer. 2. Pre-esterification 1. The degummed and dried oil is introduced into Esterificator 1 where it is heated and the alcohol-catalyser mixture is added. The reaction transforms the oil into methyl esters. 3. Pre-esterification 2. As a single pre-esterification does not guarantee full conversion, a second one is carried out.

4. Separating the glycerine. Once the reaction is done, there are two major products: a glycerine phase and the biodiesel. The glycerine is heavier compared to the biodiesel and can be therefore separated through precipitation or decantation. 5. Distillation of the methanol. The biodiesel thus obtained still contains many impurities which is why it undergoes several treatments until its complete purification. The methanol is first distilled and then returned to the mixer under vacuum for further use.

6. Neutralisation. The remaining catalyser is neutralised with an acid. 7. Flushing. After the neutralisation, the biodiesel is flushed with hot water. 8. Drying. The water contained in the biodiesel is separated in a dryer under high temperature and vacuum. 9. Winterisation. The residual wax and other crystallizing substances are separated in a winteriser after cooling the biodiesel.

10. Quality control. Before the biodiesel is used as a fuel, it is analyzed in order to guarantee its compliance with the EN 14214 standard. The analysis is conducted in our own certified laboratory. 11. Processing the waste glycerine phase. The glycerine phase is used in one of the following manners: It is transformed for other purposes. It is sold for transformation to other companies.

The entire technological process is automated with computers, sensors and actioning mechanisms. A computer controls all technological parameters such as temperature, levels, dosing, pressure, vacuum, etc. Some of the quality indicators are also controlled using this technique. The company is currently negotiating the purchase of a new production facility which will be entirely automated and functioning without interruption at a rate of 4 m³/h. This technology considerably reduces the response time and increases the quality of the final product.

Rapid Oil Industry Co., Ltd. has adopted a strategy of gradually obtaining a leading market share in the corresponding market segment. A primary element in price fixing is the quality of our products. It is maintained by applying special control and testing routines. This is possible thanks to the factory s accredited laboratory fitted with all the necessary equipment and thus ensuring the adequate control of our products. We are planning the implementation and certification of a Quality management system in compliance with EN ISO 9001:2000.

Market studies are showing that the demand of biodiesel fuel is constantly growing. The main reason for this is the fact that the prices of mineral energy resources have been recently going up. However, the increase of fuel prices did not result in lesser diesel consumption. According the report Transposition and implementation of the environmental acquis on fuel control at national level of the Ministry of Economy and Energy and as a result of the market demand described above, the development of new production powers for biodiesel becomes a necessity.

On account of this trend, we have concentrated our efforts towards obtaining a market share of 20% for our company. The availability of raw materials will be ensured by 6 tanks with a total capacity of 9 600 m³ of crude oil. The oil will be delivered according to futures agreements with processing plants of oil yielding cultures as well as import. Our main objective is the manufacturing of products with guaranteed quality. By maintaining this strategy we aim at establishing brand products in the long term.

The solutions for achieving our goal are being sought in the following directions: Hi-tech solutions implementing modern and waste-free technologies. Strict incoming and outgoing control of raw materials and final products, ensured by our own on-site laboratory. Working with reliable suppliers. Employing highly qualified and trained personnel.

Our pricing strategy consists in maintaining firm prices and constant quality, proposing special rebates to our distributors as well as convenient delivery terms for end clients. The product strategy of our company is based upon the constant development of new products by taking into account recent market studies. Such approach guarantees regular sales as well as a more efficient management of financial resources. By complying with the agreed terms of delivery and maintaining quality, ROI fuels will soon establish their position on the market.

The production plant is located in the north central part of Bulgaria almost equally distant from the main consumption poles Sofia, Plovdiv, Bourgas, Stara Zagora, Varna, Ruse and Pleven which are all areas with a high concentration of industrial sites as well as agricultural activity. Infrastructure particularities: production site situated in the near proximity of international road E85, the Sofia Varna highway and close to a large railway node in connection to our factory.

An expansion of the existing biodiesel production powers is planned in relation to the long term EU requirements to be met by 2020. The annual demand for fuels in Bulgaria amounts to 2 550 000 tons based on the current consumption. According to EU Directive 30/2003, biodiesel should represent 5,75% of all used fuels.

The expected changes and factors on the biodiesel market in Bulgaria are strongly related to the marking and quality control of the biodiesel. The quality of fuels in Bulgaria is currently controlled by the Central Laboratory for Fuel Quality according to the Regulation for petrol derivatives and biological alternatives. The research in the area can be quite costly according to market prices, which is why we are planning to build an on-site accredited laboratory guaranteeing the quality of our products through an analysis certificate complying with the EN 14241 standard.

According to the majority of world analysts, mineral fuels costs will continue going up. This influences the selling price of final products. For us this increase is directly related to profit. Unfulfilled production quota within the EU may result in the penetration of foreign products based upon the following factors: Highly qualified personnel with low wages Lower costs of electrical energy Cheaper construction terrains Quickly improving infrastructure Secured European markets, being preferentially encouraged.

N W E S

OUR POWER BETTER NATURE Veliko Tarnovo, Bulgaria