The 2nd group of measures is represented by the measures ensuring increase in efficiency ofenterprise operation by means of increasing capacity and enlarging product range.The measures of the 2nd group are as follows:

• Installation of an additional distillation and rectification unit having capacity of 50,000l (50m3)of rectified ethanol per day;
• Reconstruction of ethanol dehydration cycle with capacity increase by 50,000l (50m3) ofrectified ethanol per day;
• Installation of a technological cycle for production of new commercial products for feedapplication.

Engineering viability as well as the possibility to implement the measures of the 2nd group lays in thefact that the existing cycles and technological units, namely:

• Raw material receiving unit
• Raw material storage facility
• The cycle of raw material pretreatment
• The cycle of grinding and milling of raw material
• The cycle of hydro-heat-fermentation treatment of raw material (Fermentation No1)
• The cycle of alcohol fermentation of raw material (Fermentation No2)

can provide capacity 100,000l (100m3) of ethanol per day, while the other cycles, namely;

• Distillation and rectification
• Ethanol absolutization

can provide only 50,000l (50m3) of ethanol per day;

In other words, the cycles of distillation and rectification as well as the cycle of ethanolabsolutization are all as a BOTTLENECK in the technology.The increase in capacity of the cycles of distillation and rectification will provide the following:

• complete use of installed capacity of the cycles of raw material treatment, fermentation No1and fermentation No2;
• improving application of installed capacity of utility systems, mainly it refers to the boilerhouse;
• obtaining raw material for enlarging the range of released commercial products, which is toorganize feed production;

Cost-benefit analysis of the 2nd group of measures is made based on EBITDA; the base indicator istaken as parameter values for a plant featuring capacity of 50,000l of ethanol per day and workingwith process parameters of the plant UAB “KURANA”. Balance schemes for implementation of the 2ndgroup of measures and the “base” production are both given in the Appendices.

Calculation of investment volume required for implementation of the 2nd group of measures has beenmade based on analogous projects.

The economic benefit received from the measure application has been calculated as the differencebetween values of the “basic” EBITDA project variant and the design project variant. Based on this,the benefit equals to 3.385 million EUR per year.