Green energy from golden Backa - German company intends to invest EUR 50 million in biogas plant in Kula

Aside from being famous for its rich cultivated fields, the golden wheat area of Serbia may soon also become famous for "green" kilowatts. The municipality of Kula is more and more interesting to investors in renewable energy sources, and good news are coming from the West these days.

One of the largest German "green" companies intends to build a EUR 50 million biogas plant in this town in Backa. Although the investor's name is still kept a secret, representatives of the local self-government do not hide their satisfaction with the fact that this company has chosen their municipality. As they say to eKapija, an Invitation to Bid for a land in the new industrial zone, located between Kula and Vrbas, will be launched next month.

- It is one of the strongest biogas processing companies in Europe. For years they have been preparing for an investment in Serbia because our country has very good agricultural characteristics for what they want to engage in. Kula suits them for several reasons - the possibility of easy supply of raw materials, excellent position of our industrial zone, good transport links. They have already visited us five times, while a definite decision was made few days ago. They are extremely satisfied with their cooperation with the municipality as well - we reacted as soon as they sent us a query, and two days later they were in Kula – representatives of the municipality explain to eKapija.

The future biogas plant will have the capacity of 25 megawatts, and it will annually require raw materials from over 20,000 hectares. That means that apart from direct employment of about hundred workers, they will also need many collaborators. Therefore, this will benefit farmers too.

(Kula)

- This investment is significant for 17 municipalities in Vojvodina, from which the German investor intends to buy biomass. The plant should be put into operation in 2014, and the company will be registered in Serbia - Milic Vulovic from the Kula municipality says to our web portal.

- The investor requires 10 hectares of land, which is exactly how much we had to offer.

As our interlocutor explains, this German company is a serious investor, given that they carefully assessed all chances and opportunities offered by Serbia and the Kula municipality before deciding to enter into the deal.

- We've already have several meetings with the representatives of provincial authorities, Secretary for Economy Miroslav Vasin, representatives of Elektrovojvodina... Investors have examined all the preconditions and come to a conclusion that the project is feasible, that they have a market, as well as that it is possible to export electricity via Hungary.

In addition to the German company, other sustainable energy investors, both domestic and foreign ones, have expressed interested in investing in the industrial zone in Kula, which is made available as of this year.

- We constantly negotiate with interested companies. However, we must have in mind that cultivable land accounts for as much as 91 percent of all land on the territory of our municipality. It is necessary to "reconcile" energy projects with agricultural production and create a balance. For example, there is a possibility of installing solar panels at the height of few meters, so you can both cultivate fields and generate electricity at the same time. These two industries can also be highly complementary. For example, solar energy can be used to power watering pumps - municipal authorities say in a talk with eKapija.

MPE Balkan to complete equipping of production facility by end-2012

Over a year ago three foreign companies announced their arrival in the facilities of the former factory Fabrika Armatura Istra in Kula. The French company TC Balkan 2011 planned to start producing parts and equipment for trucks, Germany's SBF Natural Casing was supposed to kick off pet food production, whereas MPE Balkan, part of Italy's MPE Srl, had plans to begin the manufacture of car parts.

- Italy's MPE Balkan is the closest to starting production. They will be manufacturing car parts from blown plastics. Equipping of their production facility is underway, they are laying a special concrete and organizing the space. The plan is to finish all the works by the New Year, after which it will take them a month or two to move all the equipment, which is now kept in a rented space. The equipment includes special machines that are not so easy to transport - Milic Vulovic says to eKapija.

- As far as other two investors are concerned, we still don't know when they could start production.

Our interlocutors do not hide that they expect much more from greenfield investments and the new industrial zone.

M.S.