Sustainable and Standalone Oxyhydrogen powered heat generator box

Project Information

Enerbox

Grant agreement ID: 684901

DOI

10.3030/684901

Project closed

EC signature date 19 June 2015

Start date 1 June 2015

End date 30 September 2015

Funded under

• SOCIETAL CHALLENGES - Secure, clean and efficient energy

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

INSTALACIONES DE SISTEMAS ENERGETICOS EFICIENTES SL
Spain

Periodic Reporting for period 1 - Enerbox (Sustainable and Standalone Oxyhydrogen powered heat generator box)

Reporting period: 2015-06-01 to 2015-09-30

Summary of the context and overall objectives of the project

INSEEF is an engineering and installation company with more than five years of trading experience in biomass installations, standalone or as part of district heating, as well as other renewable energy solutions. We have completed multiple innovative and cost effective solutions for our clients often being pioneers (e.g. developed the first biofuel vertical elevation system in Spain). As a result of customer feedback we have spent the last 2 years developing an autonomous (operable off-grid) efficient and low cost solution, Enerbox, for users with both a high thermal energy need and difficult access to the grid (medium-large farms, mushroom cultivation, isolated buildings or communities).
Enerbox, developed by INSEEF, is the result of previous work optimizing transportable biomass technologies for farms and isolated communities, and integrating it with renewable technologies (mainly photovoltaics, PV). As a result of this work, INSEEF was granted a SME Instrument phase 1 funding for further development of the project and, firstly, to prepare a Feasibility Study. In collaboration with Nexus Seguridad y Control Industrial (“Nexus”), expert on electrolysis, we have developed a method of adding oxyhydrogen to the biomass boiler 100% safely increasing efficiency by at least 25%. In collaboration with Clavijo, biomass container manufacturer with large experience in the solar energy field, we have optimized the system design in order add PV to our standard 100kW biobox (biomass portable solution) whilst keeping it compact and easy to transport.
The aim is to introduce a disruptive solution to the EU biomass market in response to our clients’ needs in the short term, and with potential for international expansion. Enerbox will provide stable access to thermal energy utilizing low value feedstock. It will be competitive for off-grid applications that require a reliable source of thermal energy, offering a low levelized cost of thermal energy of <70€/kWh vs. 97€//kwh for other standard biomass portable solutions. The research and testing stage is now completed.
In order to assess the feasibility of Enerbox project a Feasibility Study was prepared. The objectives of the study were achieved through a technical, commercial and financial evaluation of the project, where key issues related to IPR, technical development needs, market opportunity and commercialization strategy, financial simulations, etc were approached.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

As a result of the Feasibility Study prepared, several conclusions can be extracted. Regarding the technical aspects of the project, its feasibility can be confirmed. Several risks have been identified and evaluated bringing back the conclusion that the implementation of a backup system is mandatory. The choice is a biodiesel generator, which will keep the carbon footprints equal as if this backup system will not be added. This security system will hardly ever operate, only in case of failure of the electric subsystem or unusual shortage of supply from the renewable energy source.
Meanwhile, the commercial assessment gives us the confidence that Enerbox will be easily sold. The market opportunity is huge and the consortium that we have formed has large commercial expertise which makes easier to attach Enerbox to the already established commercialization channels. There are many niches where Enerbox could be the best solution. At first, we will get focused on the organic farm sector devoted to livestock exploitation as well as agriculture (i.e. poultry, dairy, horticulture, etc). However, there are many evidences of other niches to be explored in the future (i.e. quicklime producers, sludge drying factories, doors manufactures and other wood base business, etc).
Finally, in terms of the financial evaluation we claim a highly profitable project, even with calculations based on conservative assumptions, in terms of sales, cost structure, etc. Also, other income sources have not been considered (i.e. retrofitted Enerbox to other biomass solutions, licensing, etc). Other topic approached was the possibility of financial constraints. We found out that it is unlikely that Enerbox will get into a lack of funds scenario. However, if so, the proposed strategy, based on a conservative growth and the entrance of new shareholders will sever to overcome the issue.
Therefore, the conclusion is that we must go ahead with Enerbox project. Firstly we will apply to SME Instrument to get a phase 2 funding. For that, and in order to address the project in a coherent way, we have prepared a detailed action plan, including the main tasks to be developed, schedules, budgets, work force requirements, etc. The aim of this action plan is to give an answer to the question: what to do next? The result is a comprehensive view of the technical, commercial and financial steps to be taken in order to minimize risks and optimize the strengths and opportunities of the project.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The 2013 EU directive for energy efficiency reset the goals for 2030, compared to 1990 levels: decrease of 40% in greenhouse gas emission and a 27% increase of renewable energy supply. Enerbox solution will make its contribution to the accomplishment of the new societal challenges through the integrated use of zero emissions (PV) and renewable biomass (pellets) whilst taking a step forward increasing the system efficiency, if compared with former technologies.
Our strong commitment with the environmental sustainability comes together with a value proposition capable to produce a significant socio-economic impact. In terms of economic value, the first year in the market (2018) we expect to sell at least 25 Enerbox units between Spain and France generating a 1,625,000 € turnover. Later, in 2019-2020 as the business is getting consolidated, Enerbox will be also introduced in Germany and Netherlands and we expect that the units sold will increase up to 350.
Furthermore, corresponding with INSEEF compromise with the need to transit towards a green economy, we wish to take Enerbox opportunity to also perform social activities with awareness purposes. In this sense, within our communication strategy, among others, we plan to participate in relevant communication channels (newspapers, magazines, radio, TV) where Enerbox project will be presented linked to the need for transiting towards a sustainable energy model. Also, we will prepare workshops in schools for the promotion of renewable energy (i.e operation of solar panels or biomass reactors).
For us, Enerbox project is not just about profitability, but also about innovation, R&D and, in general, social development. For this reason, the profitability indicators are highly positive and allow for the creation of new direct and indirect jobs. We believe in the continuous improvement, therefore, in order to go further with Enerbox solution, we foresee that part of the benefits must be addressed to promote and contribute to build a “smart, sustainable and inclusive” EU for the 21st century.

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