Information About Project ''shallow Ground Enery Utilizing''

Page 1 of 16

SUSTAINABLE DEVELOPMENT Sustainable development is harmonized relation between ecology and economy, preservation of natural wellness of our planet for us and for future generations, over which they repose an absolute rights. It could said that sustainable development represents directing in general, inclination for making a better world, and making balance over social, economical and environmental saving factors. Twenty years ago, in 1987., '' World Commission on Environment and Development'', wide well known as ''Brundtland Commission'', under leadership of Gro Harlem Brundtland, former Prime minister of Norway, published a report named ''Our Common Future'', which shows at danger to people and our planet from politic of economic growth with no considering for real possibilities of regenerating planet. This Commission, which Secretary General was Canadian Jim McNeill, director of comity for environmental saving as a part of international Organization for Economical Consensus and Development OECD, defined sustainable development as ‘'development which accomplishes today's needs, but no rejects possibilities accomplishing future generations needs.'' 2004., in report's preface of Progress of Federal Republic of Germany's Government named: "Perspective for Germany - our sustainable development strategy", Federal Chancellor Gerhard Schröder spoke about sustainable development this manner: "Each generation must solve its own tasks, and mustn't leave them to the next ones - this is basic premise of sustainable development and it include global perspective." At the Earth Summit in Rio de Janeiro, 1992. world's leaders accepted commendations of ''Brundtland Commission''; one of summit's results was AGENDA 21 which gives commendations for sustain managing over earth's, water's and wood's resources in 21st century.

From Stockholm to Johannesburg Some earlier, at the end of sixties last century, the first warnings and despaired yelling has been heard from specialists and various eco-organizations - which has started to transform at the national and international organization level. 1972. At First United Nations' Environment World Conference, performed in Stockholm, for the first time, impending hazards to our planet from polluting the environment in global, indicated on high international level. 1982. Second United Nations' Environment World Conference performed in Nairobi. Humanity warned to uncontrolled industrial development, exploitation of natural resources and consequences effect the environment. 1992. Conference performed in Rio de Janeiro, when, for the first time, was pointed out a link between development and environmental saving. 1997. in New York was performed Conference Rio + 5, at which concluded that in our planet's saving a small progress has achieved, but is also possible that mistakes, which has previously done, to be solved by using renewable energies. In 2002, from August 26 to September 4 in Johannesburg, Sustainable Development World Summit (Rio +10) was performed. It was a first time all world got together for one cause - sustainable development of the Earth. It rationalizes as the greatest United Nation's summit, with more than 60 000 delegates, and ecologic organizations' activities, representatives of a large world's companies and over 170 world's leaders took part in summit.

Summit about Earth - Rio de Janeiro 1992 June 1992. The United Nations' Conference of environmental saving and development (UNCED), in Rio de Janeiro (Brazil) was the greatest among all United Nations' conferences that has ever performed. Almost 10.000 official representatives presented, from about 150 countries including 116 national political leaders. Simultaneously happening-conference with the same thematic dedicated to Non-Governmental Organizations, paid attention of even more participators. Conference was pursued by over 7 000 representatives of ''seventh force''. The most significant Information about project “ Shallow ground energy utilizing”

Page 2 of 16

result presents signing and acceptance of a few important documents; one of them is Declaration about environment and development-more familiar as Rio declaration, Convention about climate change, Convention about biological miscellaneous, Principe of managing, protecting and sustainable development of all types of forests, and action plan of sustainable development for 21st century called Agenda 21.

Local Agenda 21 One of the Agenda 21's chapters about important groups is a chapter of local authorities' mission. Worldwide, different entities have pointed out their key role in concrete appliance of ''sustainability'' at local level. This have resulted a reference, given in chapter 28 - local authorities should consult to citizenship in order to rationalize strategy for creating Local Agenda (LA) 21. Each process has its own characteristics, it is marked by local conditions, including public opinion, geographic conditions that must be taken while making decisions, as same as for political movements and problems of the resources. However, it was clear from beginning that some general factors, by the local ones, exist and must be a part of each particular LA 21 process Local Agenda is not a strategy of international only, but even of key factors for protecting environment. Sustainable plan include solving questions starting from demographical via social up to economical.

Ecology does not have to and must not be conflicted with the economy One of prejudices is that protecting of environment comes to conflict with economy growth's interests- growth of national produce, social standard and opening new employment places. An experience of the world's most developed states, but even those in developing process, during last decade indicates to opposite: traditional development's concept, orientated to improve industry and simultaneously growth of spending natural resources, comes to its final limits. So called "external expenses" produced by polluting, exhausting of resources and unbalancing of human health, start to overcome benefits further growth bringing. Today, in most developed countries, invest more and more profit in protecting the environment, rationalization of energy and other resources, and developing of environment friendly technologies. Exactly in those areas, many new working places start to open. Less developed countries do not have that choice; they must lead that way, and use negative experience of using uncontrolled pollutant-making technologies, in comparing to advantages of using pure technologies. Sustainable development should stimulated by fiscal standards at local level, to stop polluting and dispersion of natural beauties.

UN's decade 2005. - 2014. "Education for sustainable development" In order to reconsider this problem, light up an abstract term "sustainable development", and transform it to concrete educating measures, from 2005-2014. UN pronounced that decade "Education for sustainable development". This thematic complex represents one of the ways for supporting sustainable development idea under UN's decade

MONTREAL AGREEMENT – ozone shield rescue

Information about project “ Shallow ground energy utilizing”

Page 3 of 16

After it has become clear that some specific sorts of freons make ozone shield more thin, in1987. Montreal agreement signed. It declared decreasing of producting freon for 50%. Very soon it has become obvious that reducing wasn't sufficiant. At beggining of 1990's Montreal protocol changed.Total stoppage for freon producing demanded. If the world hold up to agreement, ozone shield's complete healing (regeneration) estimate to be about 2050. Spreading the ozone hole (1980. - 1991.)

KYOTO PROTOCOL In 1997, in order to reduce emission of all damaging gases to the atmosphere, ’’Kyoto protocol’’ admitted. With protocol, undersigned countries made oblige to participate in decreasing of CO 2 emission to atmosphere. Percentage of decreasing CO2 emission to the atmosphere defined to each country, up to 2012. Concerning 1990. average planed decreasing up to 2012. was 5, 2 %, while European Union committed to decrease it up to 8 %! Maybe the most important world's document since industrial revolution „Kyoto protocol“, signed by highest representatives of 141 states (without SAD and Australia), stepped on duty at 16.02.2005. Increase of carbon dioxide in atmosphere, precisely, is the main perpetrator for negative effect of glass garden, what comes to hurricanes, dryness, and flood and heat impacts, in which, during last few years, millions of people lost their lives. Considering the largest amount of carbon dioxide releases while fossil fuels' (petrol and charcoal) combustion, question for finding an appropriate alternative energy sources came to the first plane. . At moment, 90 percent of all transport, producing food, medicines and chemicals in the world depend of petrol. As estimated, 2030. we'll need 60 percent of energy more, and there is petrol reserve for about four decades more. At the same time, according to UN data, in fallowing 30 years food producing must increased for 60 percent at global level, to fallow the growth of world's population. However, that will not be possible because glass garden effect and global heating considerably decrease an area of agricultural workably land. If global heating trend continues, average temperature at Earth will increase even for 5,80C up to 2100. From1900 to1990, for example, that temperature increased for just 0, 6 degrees of Celsius. 2005., according to NASA, was the warmest year in humankind's history. How much situation serious is, concerned with human's contribute to this with industrial developing, evidences fact that the warmest years in history were from 1998.-2005. Glass garden's negative effects real price is impossible to calculate and it measures by thousands of billions US dollars, professionals warns. Millions of people die of air and water pollution, and consequences of acid rains, but natural Earth's eco-system cannot recover damage previously done. Protocol itself predicted tree different investing mechanism; for Serbia in this moment, the most significant is clear development mechanism (CDM). It predicts possibilities that developed countries invests into the industrial plants' modernization and reducing carbon dioxide and other gases' emission with '' glass garden'' effect, but on territory of no developed and underdeveloped countries, while accomplished results accredit to investiture countries. .That way, developed states or, officially said, states from Annex1 (it means 30 the most developed) could achieve 5, 2% reducing of mentioned, or 8 percent, importing technology news in countries under development.

Information about project “ Shallow ground energy utilizing”

Page 4 of 16

GLASS GARDEN EFFECT Part of reflected sunlight being absorbed in gases (CO2, N2O, CH4, HFC, PFC, and SF6) and that effect confirm as temperatures on Earth as it is. Without glass garden effect, temperature would be 30°C lower.

Earth's

This self-regulation, controlled by reflexive couple, confirms ecosystems' long lasting and it has called homeostasis or homeostatic mechanism. Considering carbon-dioxide and other gases concentration's increasing during last 100 years, glass garden effect become more baded and lead to average temperature' increasing while homeostatic mechanism is not sufficient enough to bring back disarranged balance. Global heating consequences are pole's melting, sea level elevation, influence to agriculture etc. Main CO2 emission sources are wood and biomass combustion, deforestation, and combusting of fossil fuels.

Nuclear and fossil energetic row materials Widespread using of nuclear and fossil energetic row materials endanger human existence, because it has direct negative influence over human's health. Foreknown climate changes, possibilities of nuclear contamination and unsolved problems related to plutonium production in nuclear reactors, make added problems and dangers.

Petrol refinement will achieve culmination in next decade and, consider to stores limitations, fossil and nuclear fuel present using will not be able to ensure long lasting sustainable development. Fossil fuels reserves vanishing fast, and for a decade or two, most of countries will be obliged to use renewable energy sources for compensating their own energetic needs. In consider to energy resources are concentrated within a few world areas only, fossil fuels' using created interdependency system, so countries depending of importing fossil fuels are in a subordinated position. In the other hand, this situation results not only in energy economy's concentrating, but also in constant energy infrastructure prices' increase as well as increasing of trading misbalance. Importing countries bases their own economy on exporting energy rows, what leads to political, economical and social instability.

ALTERNATIVE ENERGY SOURCES Alternative energy sources will be absolute necessary if the world run out of fossil fuels, Mr. Ton Hoff, manager of Netherlands's Center for energetic researches warned. He has shown due to that ''...it is necessary more efficiency in spending fossil fuels to acquire more time for alternative energy sources' development.

BIOMASS Main animal origin biomass source is natural liquid manure. Using of biomass or fuels and refused substances made from biomass as energy source demanding their combustion and energy releasing which initialize electric energy generators. Energy accumulated in biomass has a chemical structure and during its exploitation there is no interruptions, in differ to solar or wind energy. From this aspect, biomass has more fossil fuels' characteristics than renewable energies' characteristics, what is understandable because fossil fuels are biomass' fossil form.

WIND ENERGY

Information about project “ Shallow ground energy utilizing”

Page 5 of 16

Wind energy is a sun energy transformed form. Sun heats different parts of the Earth unevenly, and it results with different air pressures, and wind become due to air pressures tendency to become equal. There are Earth's parts where blows constant (planetary) winds; at that places exploiting wind energy is the most payable. Good positions are ocean coasts, and opened sea. Opened sea emphasizes due to wind constancy, but installations' coasts and energy transport are the obstacles for such exploitation. Due transforming kinetic into mechanical energy (turning generator's mandrel) difference between wind speed at entrance and at exit is utilized only, what practically means 35% to 45% wind energy's utilizing.

SOLAR ENERGY Direct exploiting of Sun energy main principles are: 

 

Solar collectors Photo expansion cells Sun energy focusing

Photo expansion cells are elements that directly transform sunradiating energy - into electrical and the could being use as Solar collectors transform solar energy energy into water (or some independent energy sources as additional other liquid) heat energy. Waterorheating systemsones. couldAs beindependent open or energetic sources, they use, for instance, on satellites, at traffic lights, closed. calculators and distant objects that request long lasting energy source. By that, sun-radiating power is much higher in space, because Earth's atmosphere absorbs large part of the radiation, so energy achieved is much higher.

Solar energy focusing is being use for initiation of large generators. Focusing achieves using plenty of lances, but more often by using mirrors putted in dish shape or tower configuration. "Dish" configuration type has shown on this picture. "Power tower" configurations use computer controlled mirrors field for focusing sun radiation at central tower, which turns on main generator, then. "Dish" systems fallow Sun's moving and focusing sun radiating that way.

WATER ENERGY Water energy (hydro energy) is the most widespread renewable energy source. In last 30 years, energy producing in hydroelectric power station multiplied tree times, but proportion of hydro energy has increased for 50% only. In nuclear power stations, for same period, producing rose up to 100 times, and proportion 80 times. Cause for this lies in limited using of hydro energy.

Information about project “ Shallow ground energy utilizing”

Page 6 of 16

Cannot be used everywhere, because it consider plenty of fast running water; having it during whole year is desirable, because electric energy cannot be stored cheaply. To annulated influence of water level oscillating, breakwaters and accumulating lakes built. Those considerably increase build coasts of whole power station, and underground water level nearby accumulation rises up. Underground water level has a large influence to flora and fauna, so hydro energy is not quite harmless to environment. It has estimated about 25% of world's hydro energetic potential has already used. Most of unused potential exists in non-developed countries, what is favorably due to expected growth of energy consumption there. The biggest projects, planned or started, are related to China, India, Malaysia, Vietnam, Brazil and Peru…Growing energy need, by that, often dominates over concern for influences on environment, and some project dimensions impose an impression that their performing is not only a matter of energy, but prestige, too.

SHALLOW GROUND GEOTHERMAL ENERGY Earth consists of 3 layers: - Earth's crust, - mantle and - core. The Earth's core, where temperatures range up to 8.000°C, radiates heat to the surface where it acumulates partially. Earth's crust, as well, absorbs cca. 51% of incoming solar heat. Season's changes influenced at the Earth's crust temperature up to 15m of depth, while from 20 to 400m of depth is constant temperature zone.

Beside radiated and accumulated heat from the Earth's core, considerably larger amount of SOLAR heat energy being kept in Earth's crust shallow ground during whole year. Solar energy contained in Earth's crust is a main energetic potential of SHALLOW GROUND.

Geothermal energy is everywhere beneath us. Somewhere it is easy reachable or comes up to surface by itself as hot water or steam, but somewhere it is very deep, and practically unreachable.

Researches has shown Serbia has a great and very significant possibilities for using geothermal energy, and it's big part in energetic balance should be planed in a future. There are two systems of exploiting shallow ground geothermal energy, implemented worldwide, such as: Multi well system Wider spread in implementing at moment, because it is longer in use. Well's depth depend of how deep underground water is.

Information about project “ Shallow ground energy utilizing”

Single well system Patent, old not more then10 years, that implementation expands all over the world. Well depth from 80 to120m.

Page 7 of 16

EFFICIENCY GRADE COMPARING BETWEEN TRADITIONAL AND GEOTHERMAL HEATING SYSTEMS

Traditional heating ways have very low efficiency level, from 60 to 90 %, due to large part of a heat goes with combusting products. It needs a large space for fuel storage. A huge amounts of pollutants (combusting products) released. Using geothermal energy we achieve high efficiency level up to 400%, because we ''lend'' 75% our planet's energy from it. Well installation takes 1m², while heat pump, heat exchangers and other installations take 20 to 30m2, depending of installment's power. No combusting processes, no high pressures, no danger of fire or explosion. System use 1 kW of electric power to collect, promote and distribute 4 KW energy for heating, cooling and obtaining sanitary hot water, so it is energy-saving and considerably reduce operational costs. Fallowing draft represents comparing HYY's system characteristics with data from study ''Energy efficiency in Czech Republic'', published in 2005., by Jaroslav Marushek, who is executive director in Energy Efficiency Center in Czech Republic - SEVEn. Electric energy consumption for heating at yearly level has shown schematically. HYY SYSTEM

New buildings

Old buildings

kWh / m2 Information about project “ Shallow ground energy utilizing”

Page 8 of 16

EUROPEAN STANDARD

Basic economic and energetic effects are: 1. energy saving for heating spaces is approximately 4 times in relation to conventional heating models,

2. energy saving for cooling spaces is minimum 5 times in relation to convencionalcooling models,

3. the investment insignificantly increases costs per m2 in constructing (up to 10%), but in exploitation it reduces energy costs up to 80%, and 4. investition's payablement at exsisting objects, depending of previously applied energents, moves from 2 to 6 years.

Single well system's (SWS) basic characteristics 1. Less initial investments 2. Low exploitation costs 3. Water resources' protection 4. No polluting effects and no environmental heating up 5. Save and reliable energy making process 6. Elimination of air cross-contamination

Comparative advantages of single well system - SWS -Advantages over multi - well system Parameter Heat resources' type Depending of underground water Amount of moved sand (tons/month) Water pollution Water level below ground's surface Uneven ground sinking Well's persistence period ( in years)

Single well system Heat energy from ground which is continuously used throw water medium Could be applied in areas reach with water as well as in water poor areas 0

Multi-well system Heat energy which is stored in underground water only Could be applied in water reach areas only cca 10

No

Cross-contamination

No changes

There are changes

No consequences

There are consequences

More than 20

3 to 5

- Advantages over other renewable energy aspects In relations to other aspects of using natural and renewable energies (for examle wind energy -windmills, waterflow energy - mini hydroelectric power plants or solar energyi- solar panels), shallow ground geothermal energy has universal application and do not depend of seasons, meteorological conditions and other additional natural influences.

- Advantages over using traditional fossil fuels Parameter

Traditional fossil fuels

Shallow ground geothermal energy

energy

charcoal, petrol, natural gas

shallow ground energy+small amount of electric energy

heating equipment

boiler + dissipator (made of steel or cast)

heat pump + fun-coil unit

Information about project “ Shallow ground energy utilizing”

Page 9 of 16

heating process

It needs combusting temperature of 1000 0C, for water heating up to 70-80 0C

energy efficiency

low (60-90%)

pollution cooling equipment adjusted objects (annexes) cooling water lose

Shallow ground temperature of 15 0C could be multiplicities by the heat pump up to 50 or 60 0C high( COP=2~4), and efficiency saving is 50-75%

serious (dust, CO2, SO2, NOx, CO ) separated fun coil unit or cooling installation + chilling tower at object's roof big machine room, chimney, fuel's storage, mazut's underground reservoir, isolated tank for gas... at chilling towers 120t / 10 000m2

No pollution universal, same as for heating (system uses same installation) small room (2-30m2) for putting heat pump There's no lose

Direct effects on environmental saving

Reducing of

Harmful substances emission reducing effects have done at heating season sample of 6 months for 100.000 m2 residential-business space. Charcoal

Mazut

Natural gas

fossil fuels

6.000 tona

2.200 tona

2.600.000 m3

gas emission

30.000 m3

22.000 m3

2.400.000 m3

Solid particles

600 tons

0.3 tons

0

SO2 emission

250 tona

15 tons

0

NOx emission

80 tons

23 tons

25 tons

CO2 emission

12.000 tons

9.000 tons

6.000 tons

Firing wood is very common used fuel in our country, which belongs to biomass, mostly in rurals, but in cities' surroundings as well. There's no more detailed analyses like for fossil fuels previous ones; There are analyses about amounts of harmfull gases and solid particles as well as pollutants, only. Republic of Macedonia Association for technological researching, projecting and ministration made study on request of Ministarstry for environment and spatial planning, for heating seasone 2004./ 2005. According to it, harmful substances' (pollutants) emissions during heating seasone, from domestic combustion chambers which use firing wood as fuel ( in tons per year) are: Pollutant

SO2

CO

NOx

sulphurdioxide

carbon monoxide

azoth oxides

ash

33.171

106.531

1.086

3.079

23 %

74 %

1%

2%

Quantities Of total emission

Solid particles

Indirect effects on environmental saving Effects have done at heating season sample of 6 months for 100.000 m 2 residential-business space. Pollutant

Reduced

CH

CO

carbon hydrogen

carbon monoxide

NOx

Pb

azoth oxides

plumbum

6.25 – 7.8

3.9 – 4.9

2.7 – 3.4

cca. 1 Kg

Information about project “ Shallow ground energy utilizing”

Solid particles

Page 10 of 16

amounts

tons

tons

230 – 280 kg

tons

Advantages according to safeness and reliability in relation to exsisting heating systems System's class mazut gas

Working temperatures 700 0C 800 0C

electric boilers geothermal

450 0C 55 – 70 0C

Pressure

Fire protecting requirements

Problem ranging

Under pressure

Rigid requests

serious

Under pressure

Rigid requests

serious

Under pressure or not

No specific requests

serious

No pressure

No specific requests

No problems

Referent installations of single well system HYY company has implemented it's own system over at 10.000.000 m 2 . This page shows just a little part of all installations. National Theater in Beijing System provides no-freeze of 35.000 m2 surrounding waterscape in winter. Object opened in May 2006.

Shoping and business center JINSIJI 150.000 m2 area

Field Hockey Practicing Facility OLIMPIC GAMES 2008.g Total area 11.851 m2

Information about project “ Shallow ground energy utilizing”

Page 11 of 16

Bicycling Practicing Facility OLIMPIC GAMES 2008.

Residential buildings complex Total area 67.300 m2

The Supreme People’s Procurator ate 43.168 m2 area

5

* Hotel

complex

Total area 53.654 m2

Foreign Language School's sport center Total area 4.000 m2 Air and pool water heating and hot sanitary water

Information about project “ Shallow ground energy utilizing”

Page 12 of 16

Haidian District City Hall Total area 58.915 m2

Business object which uses sewage treated water as a resource Total area 13.200 m2

Technical and institutional project's support ’’HYY’’ – Beijing, China By analyzing and comparing of world's practice known technical solutions, and by overview of real potentials and needs in Serbia, as the most qualitative solution from technical, economical and ecological point of view appeared to be implementing of geothermal energy. In choosing technology process relevant science institutions, world known equipment manufacturers, companies with an previous experience in utilizing alternative energies and professionals from familiar domains will be involved. Choosing programme for geothermal energy utilizing - Single Well System (SWS) we’ll be recognized as exclusive and legal represetatives of that technology, which will be regulated by signing of all necessarily Contracts with Chinese company HYY from Beijing, the owner of unique world's patent right 441164 PCT, where we will be noticed as HYY's strategic partner for Europe. Our coapporation will start by signinig of Confidentallity Deed and Heads of Agreement. Agreement obliged us to make all our efforts to provide a share market for SWS, within period of six months. After we provide a market for HYY’s technology, we will sign System Instalation Contract. In this process we’ll have very strong support from Chinese Embassy in Belgrade and Serbia Embassy in China. In next phases of Serbia's geothermal potential utilizing we expect qualitative support from Resources Ministries and Serbian Government Agencies, 'cause HYY and Chinese Embassy expressed desire this programmeme to be important institutional and economical Serbia and China linkage.

Serbia's market potentials Before Confidentallity Deed and Heads of Agreement signing, HYY delegation is going to visit us, to make sure we possess all professional, productional, institutional and market elements unnecessary for renouncing using patent rights and technology. That occasion we will organize presentation of technology possibilities in Kragujevac, Belgrade, Svilajnac, Paraćin, Vrnjačka and Jošanička Banja for potential geotermal energy users. With the Information about project “ Shallow ground energy utilizing”

Page 13 of 16

most of potential users we will have signed Letters of intentions for installment implementation for heating, cooling and hot sanitary water by using geothermal energy. It is a long list, but we select Kragujevac Commune's outspoken needs, Svilajnac Commune, Military Medical Academy, Geological Institute in Belgrade, and Jošanička Banja needs esspecialy. Preliminary research of needs for utilizing this kind of energy in Serbia has shawn that there are, besides insufficient informing about renewable energy sources, poor market's financial forces and stimulative law's regulations deficit for utilizing any kind of renewable energies. We believe limitations will be overcome soon due to local self-managing initiatives and Serbian Government support, just according to Local Agenda 21 principles.  Project professional's support, necessery multidisciplinary potentials and infrastructures capacity growth, company will achieve in 5 different ways: 1. By signing a business-technical Contracts with: Geological Institute of Serbia, Mining-geological faculty in Belgrade, and Native mathematical faculty in Kragujevac.

science and

2. Membering in proffesion associations: membership in Serbia Geothermal Association, Engeneers Chamber of Serbia, etc. 3. It's own staff (starting with 2 graduated mechanical engeneers) and by contracts of temporary and occasional duties. 4. By engagement of producing and storing capacities of other legal subjects, 5. By cooperation with the worldwide famous equipment manufacturer under preliminary collaboration protocols - considering there's no manufacturers in Serbiawhich has a heat pumps programme in official proposal ( Danfoss, Grundfos, Wilo, Carrier, Ciat, Westinghaus ).

Republic of Serbia Institutions Interest, but also an imperative for renewable energy use development, in next period, oblige us to accomplish cooperation with all ministries which affected to achievement of this segment developing, directly or not, from departments: mining and energetic, infrastructure, economy and regional development, science, environment protecting, for National investments plan, finances, agricalture, forestry and hydraulicity, trading and services and local self-managing. Via interactive correlation with Government Agencies, we will impose all our active and passive polivalent potentials. . All studies, which we have done shows, by using geothermal energy technology's development, we will employ many different profiles' workers, by phases, throughout Serbia, respecting Government's efforts to alleviate regional development disproportion. Adequate programme presentation to Serbian Government representatives and fact that our company will be the only one permitted for utilizing, contracting and installing single well system (SWS) in Europe , opens possibility for Republic of Serbia's active accession at CDM (Clear Development Mechanism) and approach to international ''trust fonds''. This way, Republic of Serbia could provide not only high financial means, but also necessarily political and economical affinity from european and world authorities of this domain.

Information about project “ Shallow ground energy utilizing”

Page 14 of 16

CONCLUSION Nuclear and fossil energetic rows widespread use endangers human existence, because it has direct negative influence at human healt. An estimated climate changes, possibilities of nuclear contamination and unsolved problems about plutonium producing in nuclear reactors, make additional problems and dangers. Owing to energetic resources' concentration only in a few world region, fossil fuels use has made system of interdependency, so countries depending of fossil fuels importing are in absolute subordinated position, practically with colonial status In the other hand, situation like this results not in energetic concentration economy only, but also in energetic infrastructure costs constant increasing, monopoly showing, and increasing of trade unbalance, which leads to political, economical and social instability.

Information about project “ Shallow ground energy utilizing”

Page 15 of 16

At the South of Europe's geothermal map it is evidenced more favorable geothermal areas then Serbia's exists south of Italy and west Turkey (volcanic active areas). Researches have shown Serbia has considerable opportunities for geothermal energy using, and that must be planed its huge participation in energy bilance in future, due to its polifunctionality (ex.in producing biologically worth food, etc,) Existing results indicate with intensive programme of geothermal resources development should achieve, up to 2015, substitution level up to almost 2 million tons of imported liquid fuels per year. Geothermal energy use in Serbia is simbolic, only 86 MW ( less than 1 % of all possibilities), although it belongs to reacher countries according to land's geothermal potentials. Geothermal energy using and exploitation must become more intensive, because fallowing factors oblige to that: -

petrol - energetic unbalances tensions, unavoidable transition to market economy deficit's constant increase of fossil and nuclear fuels, ecological situation's aggravating and environmental saving costs increase.

Toward increasing the air temperature, especially in summer months, due to use cooling devices, Serbia is in position to import electricity even than, while geothermal energy utilizing for space cooling would decrease electricity consumption up to 80 % in the same period, and preserve considerable water potentials in power plant's accumulations. Electric energy importing could be, owing to huge savings, turned into the export!

Very edifying and positive example to world has given by German Government affording decision of subventions for electric energy used by geothermal energy utilizing.

Geothermal potentials utilizing programme in Serbia It is very important to determine ourselves for using geothermal resources in object's projecting phase, because expenses reduce within infrastructure as well as constructing domain. Geothermal energy using is desirable even in previously gasified areas, now as an alternative but as a permanent solution in future. At the locations which has impeded or disabled highway and railway traffic, problem of constant supplying with traditional fuels (coal, petrol, etc.) eliminates. It is not necessarily to mention fact it will save more millions m 3 of technical wood (now in use for fireing ?!), because there is no need to remind how negative influence deforestation has over environment. Implementation programme covers geographically different locations, but with similar geothermal characteristics. Information about project “ Shallow ground energy utilizing”

Page 16 of 16

Considering that all characteristics of geothermal energy utilizing fall into the group of ''zero emissions'' or "zero pollution" technologies, it is possible to use it in National parks, even those under first priority protection - Natural reservates. This fact should be dominant element for giving a total priority during deciding about what kind of system for heating, cooling and hot water supplying should be implementing in objects. Shallow ground energy utilizing by using wells collectors at depths 80 to 120 m and 1 m of diameter is, certainly, the best way for ''sustainable development'' principle non excluded utilizing even in traditionally ecological the most endangered areas.

- Region of spas' healing and resting centers Spas in Serbia are rich in thermal oligho mineral springs. Utilizing this technology will enable much cheaper energy for heating spaces and sanitary water, not by direct springs' using but by using spring's water after all aspects of its Utilization in medicine and healing purposes. Effect of this kind of use give better results in ratio to introduced above, considering input temperature is higher than 15 0C. The advantage also lays in fact that, except temperature's, there are no water quality changes and can not come to pollution.

- Mountain resting centers region Stara Planina location is especially interesting, due to it precede at first development phase and there is possibility for creating ecologically absolute clean and energy independent of fossil fuels area. With preserve nature and qualitative marketing, could became one of the most visited tourism capacity in Serbia. Much less initial infrastructure investment for energy providing is especially noted. Kopaonik will, for sure, as more urban entity find its economical, ecological and industrial interest for geothermal energy utilizing as important and renewable energy resource, because it owns extremely qualitative geothermal potentials.

- Urban environment Most of the cities possess centralized distant remoteness heating systems which create not only serious ecological problem, but even have considerable lost while energy distributing conditioned by too long conductors. It is hard to speak about harmful substances' emission neutralization, even harder to provide means for their purchasing and utilizing. Many sport objects in Serbia do not have qualitative heating, not to mention cooling solution. By utilizing SWS both problems solve qualitative and economically much more payable. The same related to health care, education, science and culture facilities. This system has a specific utilization in urban environment throw sewage water energy exploitation for heating spaces and providing hot sanitary water.

The essential solution for magic circle between global heating, harmful gases emission and energy consumption increasing represents turning to cheap renewable energy from natural source - the ground.

Information about project “ Shallow ground energy utilizing”