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MK Group Energy
Biogas Plant

Pact Capital facilitated the VCS credit development and issuance for a complex biogas cogeneration project in Vrbas, Serbia.

PROJECT GOALS

Development of a complex biogas cogeneration project

The project, consisting of a biogas production system coupled with two combined heat and power (CHP) generators, started electricity production in October 2022.

The project captures methane – one of the most potent greenhouse gasses – from organic waste and the produced renewable energy is utilised as heat and electricity via a cogeneration system improving the air quality of the region and supplying affordable clean energy to the citizens.

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PROJECT BENEFITS & SDGS

The Project Will Serve to:

Create enough energy to supply 5,000 households over years.

The use of biogas to generate electricity is 54% less pollutant than lignite, the main power source in Serbia.

Facilitate the heating of nearby apartment buildings with excess heat.

Contribute to the reduction of climate damage by avoiding emissions of 30,300 tCO2/y.

The production of organic solid fertiliser (NPKS) and organic liquid fertiliser (AS).

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Project Challenge

Challenge

In Serbia, the power sector that is mainly based on coal is responsible for a major part of the country’s emissions. Beside the power and industrial sectors, agriculture is the major contributor to GHG emissions (mainly methan that is multiple times more polluting than carbon dioxide), while emissions mitigation in this sector remains at low levels.

Project Actions

Actions Taken

The Vrbas biogas plant uses naturally occurring gas that is produced from anaerobic fermentation of residues from sugar production – sugar beet pulp, sugar beet waste, and desugared molasses. The plant has two gas engines producing power at 2.4 MW/h and clean gas storage volume of 2,000 Nm3.

Project Results

Results

The project captures methane – one of the most potent greenhouse gasses – from organic waste and the produced renewable energy is utilized as heat and electricity via a cogeneration system improving the air quality of the region and supplying affordable clean energy to the citizens.

The project contributes to the decarbonisation of the most polluting sectors. The expected average annual emission reductions of the project could reach 30,000 tons of CO2e.

The Vrbas biogas project meets the criteria of the VCS Program and issues credits in three crediting periods with each period corresponding to 7 years.

With the amount of thermal energy produced, there is also a possibility of heating nearby apartment buildings with excess heat.

As well as the amount of clean energy produced, there are also ecological contributions including the reduction of climate damage by avoiding emissions of 30,300 tCO2/y and the by-production of organic solid fertiliser (NPKS) and organic liquid fertiliser (AS).

Elia Fedorovski

PROJECT LEAD

Elia Fedorovski

Elia oversees fintech and business development at Pact Capital. An alumnus of the University of Warwick, he holds a first-class degree in Law and Finance. After finishing his studies, Elia spent five years at Traxys, where he worked in business development and trading. He then went on to found FabrikaNYC, a software studio and incubator. Under his leadership as COO, FabrikaNYC expanded to a team of 40, successfully completing nearly 50 projects. This includes four VC-backed ventures that collectively raised $120 million in funding and two exits through public listings.