The Business Case

On January 12, 2013

Dear Reader,

So far all you have found to read on this web-page is about plasma-reactors, test-units, master thesis, historic heroes, academic theories.  We know you are interested in the business aspects as well.   How this technology creates value for clients and profits for us.

Let’s start with Application No. 1:  Manure treatment

In our view manure treatment is a “low hanging fruit” as far as N2 Applied’s fusionfarming technology is concerned.

Let’s presume a porc-farmer in Europe producing 75.000 pigs and correspondingly 35.000 kubicmetres manure a year.  The farmer buys fusion farming technology from N2 Applied, and this is how his economy will be affected:

Assumptions:

  • Investment in equipment
    • A 170kw plasma reactor unit                                          € 137.000  (NOK 1 mill)
    • Capacity:                                                                          20 kg N/hr
    • Depreciation period                                                          10 years
    • Electricity cost (0,5 NOK/kwh=52€/Mwh)                       €  78.000 pr. year (NOK 570.000)
    • Added nitrogen                                                                  0,6% N in manure

Calculated net savings for our EU farmer producing 75.000 pigs a year:

  • Savings on fertilizer purchase                          € 400.000
  • Reduced spreading cost                                  € 130.000
  • Expected savings on environment taxes
    and renovation works                                       €   75.000

Total                                                                             € 605.000 (NOK 4.416.000) per year

 

Recirculating nature’s nitrogen is good news for the environment, and it is certainly good news for the farmers as well.  € 605.000 in yearly savings for this EU farmer.  The calculations and assumptions are made in cooperation with an actual pig farmer in an EU country and represent our joint best estimates.

This is one of the business cases we are pursuing.  It is Application No 1.

Contact us  if you have a potential business case you want us to calculate.

 

1 $ = NOK 5,60

1 € = NOK 7,30

Comments are closed.