A.R.I.A. Group

A summarised description of business carried out by the main Group companies is set out below.

Terni En.A.

The company operates in electricity production from renewable sources, and specifically the biomass (paper mill pulp) waste to energy sector.

The electricity incentive period (Interdepartmental Price Commission 6/92) expired on 9 July 2010, as a result of two successive extensions granted by the Italian Authority for Electricity and Gas over the original expiry of 13 May 2010.

Following the expiry of the concession arrangement, the plant operated at ordinary full capacity until the suspension of activities on 6 August 2010 due to the start of plant revamping.

In the first eight months of 2010, the waste to energy plant handled 54,925 tonnes of treated pulp (net transferred total of 61,401 tonnes), with overall productivity of MWh 45,466 and electricity transfer of MWh 40,564.
As regards plant revamping activities, in order to access a new incentive period for fifteen years (Green Certificates), Ministerial Decree of 18 December 2008 requires plants to obtain a new certification, the Renewable Energy Source Plant certification, for which the National Grid Operator is responsible.

This qualification is to be obtained through the execution of works that involve the complete reconstruction of some parts of the plant (grill, oven, steam generator) and replacement of some pieces of machinery with new components (turbine, alternator); notwithstanding the possibility of technological (like spare parts) or commercial (for sale or conversion) re-use of any replaced components.

This new qualification, obtained by the National Grid Operator in December 2009, made it possible to develop, also in harmony with the provisions of the Umbria Region Waste Plan, the plant modernisation project through the execution of “plant revamping works and upgrading of the existing central energy recovery site in the Municipality of Terni”, which allows, inter alia, the following objectives to be achieved:

  • enhancement of energy performances (with equal thermal potential of the oven and equal quantity of fuel treated);
  • enhancement of environment performances;
  • improvement of the operating and management structure of fuels;
  • architectural and functional upgrading of the site through the execution of civil works and environmental upgrading.

The revamping project has been broken down into two functional lots:

Lot 1: strictly technological works
Lot 2: architectural and functional upgrading of the site

In January 2010, Terni EN.A. submitted, to the competent offices of the Province of Terni and Umbria Region, an application for updating of the AIA (Integrated Environmental Authorisation) solely for technological works strictly linked to the plant’s functionality; the Province of Terni then approved the initiative and, by means of Managerial Directive, index no. 1/2010, file no. 15541 of 11.03.2010, authorised Terni EN.A. to carry out the technological works.

EALL

EALL S.r.l. produces electricity from renewable sources and, above all, from Refuse Derived Fuel (RDF), as defined by the Ministerial Decree of 5 February 1988 and the subsequent Legislative Decree 152/2006 (the Consolidated Environment Act).

The tried and tested technology used ensures a good level of performance, as well as a reduced and controlled environmental impact. This, together with availability of the raw material, enabled the plant to achieve satisfactory results in technical, environmental and economic terms, in spite of the need to face various technical problems and operational difficulties.

Plant activities in 2010 were characterised by a performance sufficiently in line with expectations; in operating terms, total electricity production of MWh 80,171 was guaranteed, with consequent network supply of MWh 70,602.

More specifically, the amount of waste-to-energy RDF and the transferred amount are higher than the amount recorded in 2009, totalling 15,675 tonnes (+20%).

The economic and performance results of the plant were influenced by the characteristics and quantities of the transferred RDF. As regards the plan made at the beginning of the year, which identified SAF as the contributor of roughly two-thirds of total quantities, due to the fact SAF was unable to meet the commitments undertaken, EALL had to supply RDF also from other companies.

More specifically, the total annual amount of transferred RDF (equal to 93,276 tonnes) was provided as follows:

  • 77,765 tonnes from SAF;
  • 13,383 tonnes from other contributors;
  • 2,128 tonnes from Enercombustibili.

In 2010 works continued on the new waste-to-energy lines, with roughly 90% of works completed, in compliance with the provisions of the executive timetable.

Moreover, Variance Survey no. 3 was approved for a final amount of 115 million euros, aimed at improvement solutions and for bringing certain sections of the plant into line with supplementary authorisation provisions.

In conclusion, it has been deemed appropriate to list the main significant events that occurred in 2010:

  • a 10-day extension of operation under the CIP6/92 system was granted by the GSE following a justified and articulated request submitted by EALL (new expiry date: 10 November 2010);
  • renewal of the EMAS certification in December 2010;
  • start of the "safety project”;
  • improvement and rationalisation of IT protection systems and suitable procedures for the collection of data concerning stack emission control, with a double security level to protect data storage and integrity against any external IT access and internal operators;
  • start of commissioning activities and blank tests, aimed at the preparation of the assisted management period of line II.

Finally, in March 2010 a preliminary agreement was set out with GSE for the sale (under the CIP 6/92 system) of an additional 23.2 MWh of electricity generated as a result of the upgrading of the existing plant.

SAO

SAO owns the landfill located in the Municipality of Orvieto and manages urban and special waste.

The following events took place in 2010:

  • pursuant to provisions envisaged in the Integrated Environmental Authorisation issued by the Umbria Region with Managerial Directive no. 210 of 19 January 2010, the transfers of special non-hazardous waste continued;
  • application of the tariff plan provided by the agreement between SAO and ATO4 on 13 August 2007, that regulates management of the public service of selection, treatment and disposal of urban waste and similar products from the ATI4 municipalities and the special waste resulting from treatment of the aforesaid urban waste.

On 19 January 2010, by means of Managerial Directive no. 210, the Orvieto plant complex obtained the Integrated Environmental Authorisation from the Umbria Region, pursuant to Legislative Decree 59/2005.

The aforementioned plant complex is essentially composed of a landfill for non-hazardous waste with a total gross capacity of 2,332,403 cubic metres and gross residual capacity, as at 31/12/2010, of 483,686 cubic metres and a waste treatment plant with recovery and disposal operations with a capacity of 80,000 tonnes/year as regards the organic portion and 30 tonnes/hour in relation to the mechanical selection of mixed urban waste.

Issuing of the Integrated Environmental Authorisation meets the requirements introduced by the new regulations in order to guarantee that all necessary measures were taken to achieve a high level of environmental protection.

In 2010, the company continued with its intense research, study and planning activities started in 2009 in the aerobic and anaerobic waste treatment sector and coordinated, with its technicians, an interdisciplinary work group that carried out a series of geotechnical, geophysical and environmental matrix surveys.

These activities allowed the company to draft the project for the “revamping of the waste treatment plant and expansion of the landfill for non-hazardous waste in District 35/A – Orvieto” which, essentially consists of expanding the landfill by roughly an additional 2,400,000 cubic metres and revamping of the treatment plant with the implementation of an anaerobic digestion section for the organic portion and the production of approximately 1MW of electricity from the combustion of biogas.

This project refers to the Waste Management Plan, approved with Resolution no. 301 of the Regional Council held on 5 May 2009, which is the current planning instrument for urban and special waste produced in Umbria.

In June 2010, for the purposes of publication, SAO submitted an application for the Environmental Impact Assessment to the competent Authorities, coordinated with the Integrated Environmental Authorisation, for the above-mentioned project.

The preliminary phase of the Integrated Environmental Authorisation procedure concluded positively in December 2010. The Province of Terni sent the Umbria Region the final preliminary document approved unanimously by the Services Conference, which also met last December for the launch of the Environmental Impact Assessment procedure.

The company is currently waiting for the Umbria Region to set a date for the first Services Conference of the Environmental Impact Assessment procedure.

ENERCOMBUSTIBILI

This company manages an RDF production plant in Castellaccio di Paliano (FR). The plant is authorised to treat dry waste deriving from urban solid waste and special waste, producing an annual volume of up to 120,000 tonnes of RDF in accordance with the law. This is currently classified as high calorific power.

The operating performance was influenced by the lack of waste-to-energy plants capable of processing the fuel produced at low costs and in line with the pace of the production cycle.

Therefore, the Company carried out its own RDF production activities based on the needs of the San Vittore del Lazio waste-to-energy plant of the company EALL S.r.l..

In particular, it should be noted that the company possesses an ordinary authorisation for the production of RDF, expiring on 30 June 2018.

This authorisation certainly represents a significant asset, especially if we consider the difficulties connected with locating, realising and authorising activities in the environmental sector, and in particular, waste treatment.

In this regard, taking into account the short-term development of the reference context of waste management in the Lazio Region and, in particular, the start-up of the 2nd and 3rd waste to-energy lines of the San Vittore del Lazio plant, expected in 2011, it is believed the Paliano plant may acquire, in line with the planning decisions that will be adopted by the competent regional Authorities, a significant role in the disposal of waste in the aforementioned regional context and serve a fundamental function in the continued operation, at full capacity, of the two new waste to-energy lines mentioned above.