Summary sheet
The project concerns the construction and operation of a processing plant for the production of edible oil from oilseeds, as well as the acquisition of railcars for the transportation of edible oil.
The aim is to support the development of sustainable primary production systems, supply healthy food and fibres and biomass for bio-based products and materials, as well as promote sustainability and resilience in rural and coastal areas through the improvement of existing or construction of new, rural and coastal infrastructure and facilities. As such, the related investments are in line with the 1.1.5. Bioeconomy Main Policy Priority Areas of the InvestEU Sustainable Infrastructure Window (SIW). The project will generate climate benefits, by producing renewable energy based on discarded sunflower seed hulls. It will also reduce greenhouse gas emissions through the modal shift from railcars instead of trucks to transport edible oil and agricultural products to the port of Varna.
The project supports sustainable agriculture and other elements of the wider sustainable bioeconomy, which is one of the Main Policy Priority Areas under the InvestEU Sustainable Infrastructure Window (SIW). The project improves the competitive position of the agribusiness sector in Northern Bulgaria and improves the rural enterprises access to export markets by increasing the local capacity and efficiency to process and handle sunflower seeds and the related products.
The project addresses several market failures, including (i) negative carbon externalities, (ii) imperfect competition, due to asymmetric information and (iii) failures in the financial market caused by the fact that the economic lifetime of the project exceeds significantly the tenor of loans that are typically available on capital markets. In that context, the promoter is faced with a sub-optimal investment situation, as it cannot access long-term loans matching the economic lifetime of the project.
The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
The project, located in an existing industrial area, far away from any nature conservation area, falls under the scope of Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending Directive 2011/92/EU), as such local authorities concluded that a full EIA is not required. No environmentally sensitive zones will be affected. The plant, which will be SEVESO certified, is developed in line with national regulatory requirements and international standards to reduce emissions, will employ modern and efficient technologies, with low energy and resource consumptions, in line with the Best Available Techniques in the sector. The generated waste is neither significant nor of a dangerous nature, and the corresponding and appropriate disposal mechanisms are established. The main emissions expected for the plant are the emissions to air and waste water. Used water is collected and sent to the communal wastewater, and after treatment through a treatment facility is sent to the urban sewage network. The project is not included in the EIB Carbon Footprint, as both the absolute (11.8 kT CO2/year) and relative (8.5 kT CO2/year) emissions are below the 20 kt CO2-eq threshold. The project is considered to be Paris aligned - both against low carbon and resilience goals -as it operates in the bio-economy sector, it's not in an energy intensive industry, as well as it's not included in any CBR-excluded activities. The plant will also include a bio-mass boiler fed with discarded husks, for the generation of renewable energy, covering the entire demand for heat from the operations. It will also generate renewable energy, by burning the discarded husks, and transforming them in thermal energy. The acquisition of railcars for the transportation of the edible oil is considered as modal shift, by avoiding the transportation of the products by trucks.
The promoter is a private company and the project will be developed on privately owned land, therefore, it is not required to follow the EU public procurement directives and may undertake private procurement procedures according to the EIB's Guide to Procurement (GtP).