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Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Economics of Natural Resources and Environment POTENTIAL OF BOVINE BIOMASS FOR ELECTRICITY PRODUCTION IN THE AZORES André Pina, Kiti Suomalainen & Leonardo Rosado January 2008
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Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

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Page 1: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment Economics of Natural Resources and Environment

POTENTIAL OF BOVINE BIOMASS FOR ELECTRICITY PRODUCTION IN THE

AZORES

André Pina, Kiti Suomalainen & Leonardo Rosado

January 2008

Page 2: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Contents

1. Introduction2. Biomass3. Azores4. Anaerobic Digestion5. Energy Potential6. Conclusions

Page 3: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Introduction: The Green Island Project

• Indicate prospects for reducing fossil fuel use– Reduction of energy use– Increase conversion efficiencies– Increase share of renewable energy

• Energy consumption– Fossil fuels, transports, CO2– Electricity consumption, efficiency in buildings– Electricity production, fossil and renewable– Grid capacities

Page 4: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Introduction: Objectives

• Contribute to the Green island project– explore a renewable energy source – endogenous natural resources of the Azores

• Evaluate the economic viability of bovine biomass– Energetic potential– Definition of a system to generate electricity– Costs to implement the system– Evaluation of economic viability

Page 5: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Biomass: What is it?

• Biological material derived from living or recently living organisms, both animal and vegetable.

• Virgin wood • Energy crops• Agricultural residues• Industrial waste and co-products• Food waste

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Biomass: What to do with it?

FROM BIOMASS

• Thermal– Combustion– Gasification– Pyrolysis

• Chemical– Anaerobic digestion

TO USEFUL STUFF

• Biofuels - transports• Biopower – electricity & heat• Bioproducts – chemicals, replace plastics, pellets (heat)

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Biomass: Facts about biogas from cow dung

• Cow dung gas is 55-65% methane, 30-35% carbon dioxide, with some hydrogen, nitrogen and other traces.

• Heating values (MJ/kg)• Methane: 40• Natural gas: 36 • Biogas: 27• Fuel oil: 42

• Cow dung slurry is composed of (%)• Nitrogen (N2): ~2.2• Phosphorus (P2O5): ~1.1• Potassium (K2O): ~0.7• Organic humus: 50-75.

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Socioeconomical Characterization 1|2

2005 GDP

Millions €

GDP per

capita€

Productivity(GVA/

Employment)Thousands €

Portugal 143 478 13 575 28,8

Continente 136 259 13 515 27,8

Açores 2890 11 930 29,2

• Spatial Distribution– 9 isles– 3 groups

• GDP & Productivity– Lower GDP per capita

– Higher Productivity

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Socioeconomical Characterization 2|2

• Population– ¾ in S. Miguel & Terceira

2005Population Population Area Pop. Density

  % km2 cap/km2

São Miguel 126937 53.6% 747 170

Santa Maria 5524 2.3% 97 57

São Jorge 9523 4.0% 246 39

Terceira 55599 23.5% 402 138

Graciosa 4813 2.0% 61 79

Faial 15343 6.5% 173 89

Pico 14750 6.2% 448 33

Flores 4023 1.7% 142 28

Corvo 461 0.2% 17 27

Azores 236973 100 2333 102

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Electricity Consumption 1|5

• Island distribution of primary energy used– Higher consumption in Faial– Lower consumption in Corvo

• Sector distribution of primary energy used– Higher consumption in

electricity– 7% in electricity production

from a non-fossil source– 3% of total from a non-fossil

source

Primary energy use per capita

GJ/cap

São Miguel 64,94

Santa Maria 51,92

São Jorge 58,23

Terceira 57,02

Graciosa 52,15

Faial 79,50

Pico 66,23

Flores 59,16

Corvo 31,92

Lisbon: 97.2 GJ/cap

 Primary energy

TJ

Domestic 1123

Commerce/ services

336

Public services

269

Industries 2382

Transports 4826

Electricity production

6019

Sources: IEA, website consulted in August 2007, DGGE 2005, EDA 2005.

Sources: IEA, website consulted in August 2007, DGGE 2005, EDA 2005.

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2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

• Final use by sector and island– Higher consumption in Domestic sector

followed by Commerce & Services

Azores: Electricity Consumption 2|5

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Electricity Consumption 3|5

• Consumption per Capita– Higher consumption in Terceira– Lower consumption in Corvo

Electricity consumption per capitaMWh/cap

São Miguel 2,85

Santa Maria 3,02

São Jorge 2,34

Terceira 3,03

Graciosa 2,20

Faial 2,81

Pico 2,31

Flores 2,36

Corvo 2,10

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Electricity Consumption 4|5

• Fuels’ consumption– Four main fuels: Butane, Gasoline, Diesel & Fuel

oil– Diesel and Fuel Oil for Electricity production

FUEL OIL

0%

0%

1%

15% 0%

0%

84%

Domestic

Commerce/services

Public services

Industries and agriculture

Public lighting

Transports

Electricity Production

DIESEL

0% 6% 3% 11%

0%

68%

12%

Domestic

Commerce/services

Public services

Industries and agriculture

Public lighting

Transports

Electricity Production

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Azores: Electricity Consumption 5|5

• CO2 emissions– Electricity Production & Transports account for

75%

Source: Edifícios Saudáveis Consultores, 2004.

 São

MiguelSanta Maria

São Jorge

Terceira Graciosa Faial Pico Flores Corvo

  tons CO2

Domestic 41824 1759 2698 10556 1113 2142 2704 1213 111

Commerce/services

20691 0 0 897 0 0 1403 0 0

Public services

6469 0 63 1790 528 9402 33 0 0

Industries and

agriculture84621 2732 2337 50551 1597

13014

13192

4339 0

Transports21338

47122

16207

30282 66892705

12468

26263 147

Electricity Production

195732

72811596

8127976 6829

33209

25296

3042 739

Total 5627211889

43727

3222052 16756

84818

67310

14857

997

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Contents1. Introduction

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3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic Digestion: Technological Overview

• A process where bacteria break down organic material in the absence of air (oxygen).

• Used for treating – agricultural, – household and – industrial residues and – sewage sludge.

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3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: Entire process overview

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion : 4 steps

1. Hydrolysis : Complex organic matter decomposed into simple soluble organic molecules (water used to split the chemical bonds between).

2. Fermentation: Enzymes, bacteria, yeasts, or molds decompose carbohydrates in the absence of oxygen.

3. Acetogenesis: Acetogenic bacteria convert fermentation products into acetate, hydrogen and carbon dioxide.

4. Methanogenesis: CH4 and CO2 are formed from acetate and hydrogen/carbon dioxide by methanogenic bacteria.

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3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: The products

• The products of this process are:

• Biogas (principally methane (CH4) and carbon dioxide (CO2))

• A solid residue that is similar to compost 

• A liquid liquor that can be used as a fertilizer.

Biogas can be used for heat and/or electricity production

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Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: Electricity production

• Electricity (and heat) may be produced in conventional boilers, (dual)fuel engines or CHP plants (the same way as natural gas is used).

• Efficiency– Electric ~40%– With heat recovery ~80-85%

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3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: Example from Luxemburg 1|2

Redange co-operative

• A co-operative of 29 local farms, ”Biogas un der Atert”, in cooperation with the municipality, the wastes syndicate, the biogas planning office.

• Area radius 6 km• Annual energy valorisation of

– 230 tonnes manure• Energetic valorisation of municipality house waste foreseen• 2 x 3 x 1000 m3 digesters

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5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: Example from Luxemburg 2|2

Output and feasibility

• 5 800 m3 biogas per day, 60% methane

• 700 kWe cogeneration module– 4.5 GWh(e),– 5.6 GWh(th) per year

• Investment cost 4.5 M€ (60% Ministry of agriculture, 4000€ per farmer, rest financed by a loan)

• Electricity sold at 10 c€/kWh investment return rate <5 yrs

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5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: From small-scale to large-scale

Water Reclamation Plant, Brisbane, treats sewage and industrial wastes. Sludges are pre-treated by an hydrolysis process prior to anaerobic digestion. > 10 000 tonnes per year sludge treated.

0.5 kg of cow dung gives enough gas to cook a day's meals for a family in India.

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6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: CO2 mitigation

Key ways anaerobic digestion reduces CO2 emissions:

• Replacement of fossil fuels• Reducing methane emission from landfills• Displacing industrially-produced chemical fertilisers• Reducing transportation to landfill• Reducing electrical grid transportation losses (not in

our case though)

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6. Conclusions

Economics of Natural Resources and Environment

Anaerobic digestion: Our system

O O C

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6. Conclusions

Economics of Natural Resources and Environment

Energy Potential: Bovine population in the Azores 1|2

• Total number of cows in the Azores is estimated to be around 226000

• The number of cows in each island is proportional to the milk produced

2005Milk produced Cows

Thousand liters

 

São Miguel 310730.8 140506Santa Maria 0.0 0São Jorge 28979.1 13104Terceira 129214.5 58428Graciosa 7468.5 3377

Faial 14047.5 6352Pico 8346.6 3774

Flores 925.7 419Corvo 88.8 40Total 499801.5 226000

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6. Conclusions

Economics of Natural Resources and Environment

Energy Potential: Bovine population in the Azores 2|2

• On average, 1 tonne of manure can be produced by 30 cows each day

• How much of the total manure is available?• Depends on the farmers and the space the

cows are confined in (50% will be used)

2005Cows

Manure produced (100%)

  tonne/daySão Miguel 140506 4683.5Santa Maria 0 0.0São Jorge 13104 436.8Terceira 58428 1947.6Graciosa 3377 112.6

Faial 6352 211.7Pico 3774 125.8

Flores 419 14.0Corvo 40 1.3Total 226000 7533.3

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4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Energy Potential: Biogas produced

• From 1 tonne of manure, 25 m3 of biogas can be produced

• Each m3 of biogas contains around 24 MJ of energy

2005Biogas Energym3/day MJ/day

São Miguel 58544.21405060.0Santa Maria 0.0 0.0São Jorge 5460.0 131040.0Terceira 24345.0 584280.0Graciosa 1407.1 33770.0

Faial 2646.7 63520.0Pico 1572.5 37740.0

Flores 174.6 4190.0Corvo 16.7 400.0Total 94166.72260000.0

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6. Conclusions

Economics of Natural Resources and Environment

Energy Potential: Electricity production 1|3

• Biogas can be used to produce electricity• Efficiencies are in the order of 40%

2005Electricity ElectricitykWh/day kWh/year

São Miguel 156117.856982988.9Santa Maria 0.0 0.0São Jorge 14560.0 5314400.0Terceira 64920.023695800.0Graciosa 3752.2 1369561.1

Faial 7057.8 2576088.9Pico 4193.3 1530566.7

Flores 465.56 169927.8Corvo 44.4 16222.2Total 251111.191655555.6

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Economics of Natural Resources and Environment

Energy Potential: Electricity production 2|3

• How do these values compare with total electricity consumption?

• Electricity savings would come directly from fuel/diesel engines

2005Electricity

Electricity Produced

Fraction

GWh/year GWh/year %São Miguel 57.0 400.1 14.24Santa Maria 0.0 18.8 0.00São Jorge 5.3 25.1 21.17Terceira 23.7 193.0 12.28Graciosa 1.4 11.6 11.81

Faial 2.6 50.4 5.11Pico 1.5 41 3.73

Flores 0.2 10.3 1.65Corvo 0.0 1.1 1.47Total 68.7 751.4 12.20

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Economics of Natural Resources and Environment

Energy Potential: Electricity production 3|3

• Fuel/Diesel savings

• Most promising islands:– São Miguel– São Jorge– Terceira– Graciosa

2005Electricity

Fuel/Diesel Electricity

Fraction

GWh/year GWh/year %São Miguel 57.0 307.1 18.56Santa Maria 0.0 16.5 0.00São Jorge 5.3 22.4 23.73Terceira 23.7 188.5 12.57Graciosa 1.4 9.9 13.83

Faial 2.6 47.1 5.47Pico 1.5 36.4 4.20

Flores 0.2 4.5 3.78Corvo 0.0 1.1 1.47Total 68.7 667.7 14.47

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Economics of Natural Resources and Environment

Energy Potential: Capacity to install

• The capacity to install must be slightly higher than the estimate– Only 50% of the biomass was accounted as

useful

2005Electricity Capacity needed

kWh/h MWSão Miguel 6504.9 7.5São Jorge 606.7 0.7Terceira 2705.0 3.2Graciosa 156.3 0.2

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Economics of Natural Resources and Environment

Energy Potential: Costs 1|2

• Two types of costs must be taken into account:– Installation costs– Running costs

• Cost of kW installed decreases with the total capacity

2005Capacity installed

Cost of kW

Total installation cost

MW €/kW M€São Miguel 7.5 4300 32.25São Jorge 0.7 5100 3.57Terceira 3.2 4500 14.40Graciosa 0.2 5900 1.18

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Economics of Natural Resources and Environment

Energy Potential: Costs 2|2

• Running costs include– Staff– Insurance– Transport costs– Annual fees for licenses and pollution control– Operating and Maintenance of digester and

generator

• Running costs are typically considered to be around 0.03 €/kWh

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Economics of Natural Resources and Environment

Energy Potential: Revenues

• Current legislations supports use of biogas with tariffs as following:– 0.104 €/kWh for the first 15 years– 0.060 €/kWh afterwards (assumed value)

• Future revenues, as well as future expenses, must be discounted– Discout rate of 7% will be used

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Economics of Natural Resources and Environment

Energy Potential: Economic Feasibility

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Economics of Natural Resources and Environment

Energy Potential: Carbon emissions saved

• For each kWh of electricity produced using biogas, carbon emissions are mitigated

2005

Biogas Electricity

Fuel savedCO2

mitigatedTotal CO2 Fraction

GWh/yeartonneCO2/

yeartonneCO2/

year%

São Miguel 57.0Thick fuel oil

3.5% 16723 562721 2.97São Jorge 5.3 Diesel 1341 37273 3.60Terceira 23.7 Thin fuel oil 7489 222052 3.37Graciosa 1.4 Diesel 346 16756 2.06

Total 68.7 25899 838802 3.09

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Economics of Natural Resources and Environment

Energy Potential: Total savings with CO2 mitigation

• In the future, CO2 will have a cost– Assumed 20€ for each tonne of CO2 emitted

• Should the farmers receive money for the manure, given their contribution to CO2 mitigation?– If so, how much? (100 €/tonne will be

assumed)– Who would pay for it? (Assumed the company)– Is it included in the tariffs? (Assumed to be)

2005

CO2 mitigated

Savings

Manure used (50% of produced)

Savings per tonne of manure

tonneCO2/year

€/year Tonne/year €/tonne

São Miguel 16723334460 2341.8 142.8São Jorge 1341 26820 218.4 122.8Terceira 7489149780 973.8 153.8Graciosa 346 6920 56.3 122.9

Total 25899517980 3590.3 144.3

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5. Energy Potential

6. Conclusions

Economics of Natural Resources and Environment

Energy Potential: New Economic Feasibility

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6. Conclusions

Economics of Natural Resources and Environment

Conclusions

• 3 Islands show economic viability to implement this system – S. Miguel, S. Jorge & Terceira

• Substitution of about 15% of fossil fuels– Reduce CO2 emissions– Decrease dependence on energy imports

• Including cost of dung still maintains economic viability for the 3 islands

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Economics of Natural Resources and Environment

Conclusions: Discussion

• How much manure is really available?– Assumed 50%– Is this the farmer’s preferred choice?– Also depends on logistics – where are the cows?

• Should the farmer be paid for the cow dung?– Who owns the installation (e.g. cooperative or state)?– Where do the cows graze (who owns the grass)?– What happens to the manure otherwise?

• If so, how much?– Delivery costs?– Price of CO2 emission permits avoided?– Who pays? Is this included in the feed-in tariff?

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6. Conclusions

Economics of Natural Resources and Environment

Bibliography

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Page 42: Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment POTENTIAL.

Contents1. Introduction

2. Biomass

3. Azores

4. Anaerobic Dig.

5. Energy Potential

6. Conclusions

Economics of Natural Resources and EnvironmentTHE END

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