Biorefinery for Cellulose Fiber Production In Georgia

Another investment business opportunity supported by the Georgian government is the Biorefinery for Cellulose Fiber Production as we said in the previous article, the Georgian government has a strong investment offer for investors, it has a liberal and free-market-oriented economic policy, access to a 2.3 billion consumer market through its solid FTA network including both EU and China, educated, skilled, and competitively priced workforce, 6 types of low and flat taxes, significantly decreased the number of licenses and permissions, well developed, integrated and multimodal transport infrastructure.

Biorefinery for Cellulose Fiber Production

There is a growing demand for cellulose in the global market. Biorefineries have been proposed as promising technological schemes to obtain cellulose fiber as well as by-products and energy. However, the business performance of biorefineries was challenging, because of the failure of the multiple projects at the commercial stage.
The investment proposal offers the newly developed technology of biodegradation, which is based on organic acidulous reactions and makes earlier unreached high yield possible. Within the scope of the project, an agreement was established with the world’s leading biorefinery company Chempolis, Finland, which is willing to transfer the biorefinery technology in Georgia.

In Georgia, there are more than 300,000 tons of raw material annually, such as waste from wheat, barley, corn, etc., which are concentrated in east and west Georgia. Thus, the investment proposal is developed for the Qvemo Kartli region with a capacity of producing about 25,000 tons of high-quality cellulosic fiber per annum.

Progressive biorefinery in Qvemo Kartli has the following benefits:
The cost advantage of raw material
The cost advantage of human resources
High demand on the internal and external market on cellulose

Financial Information:
Total Capital Investment: $25 Million
IRR: 30%
Payback Period: 3.5 years

To get more information about the best investment opportunities please do not hesitate to contact our consultant in Avageorgia.ge and Get in touch with us.