3. Mozambique's former driving Coconut Industry
– prosper times are over, what next?
Coconut - Tree of Life
• The Coconut Tree (Cocos Nucifera L.) is called "The Tree of
Life" because of the endless list of products and by-products
derived from its various parts. Food, shelter, fuel - name it,
the coconut has it.
• And than CLYD, the Coconut Lethal Yellowing Disease was
discovered and Rhinoceros Beetle (Oryctes) did the rest.
Slowly but with little hope of stopping it, large areas of
Coconut Tree Plantations are forever lost!
4. OPPORTUNITY - AN IDEA IS BORN
Tapping in the unique opportunity:
Biomass from dying Coconut Trees in
Mozambique, Large Areas of Tree Cutting
and Removal
COCONUT –
Tree of Life?
BIOMASS as last
Part of the life-cycle
5. CocoPellet
Concept
Using the Export of
Biomass industrial
from Estates/ Pellets in bulk
Plantations Setting up of shipment to
a 130 ton/year Europe
Biomass
Pellet Plant
6. General Challenges and Opportunities we
faced Renewable energy exploitability and
infrastructure availability in Africa
1
Forestry management aspects that can
Be certified on basis of the FSC
2
Worldwide Economic crisis
risk aversion to invest in Africa
3
Missing Southern African regions
investment opportunities
4
7. Challenges of a green Idea to
get an Investor (in Africa)
Is it enough to have …
Business'Plan'
• a well elaborated Business
proposal
• Your financials and Investment
!
figures right
• Company Documents are all in
order Plan prepared by:
Peter Pichler
• Necessary supporting Letters Version 2012-06-21
and approval from Government
8. We are motivated to
During our search for the right Investor/Partner
we had some distressing experience to make after
placing our project……
• We submitted once the Project to the Investment Centre CPI
but we had to discover that we dealt with a con-man who
used a cunning way convincing us
• We where 3 times approach by very convinced Investors who
failed to come up with proof of cash to support their promises!
• We had to deal with more than 10 scammers from all around
the world (be careful with postings on investment websites!),
wasting a lot of time
9. Presentation CocoPellet Plant Mozambique
Facts Project Financials
• Funding Required – USD 35 Mio for
full start up.
• Ten year IRR of 22%.
• Biomass wood pellets 130kt pa
• Investment USD 35m EBITDA
Margin 39/44 %
• Ten year IRR of 22%
• Note: IRR figures quoted do not
include residual values at the end of
the project. The project is expected
to continue beyond the 10 year
stated duration.
10. Background
• The funding being raised will enable the
SPV to acquire the necessary licenses and
equipment to produce up to 130,000 tones
of compressed wood pellets per annum.
Investment is required Q1 2013 with
production scheduled to begin Q4 2013.
13. CocoPellet Factory outline
BioTech Lda. Mozambique Cocowood Pellet Project Flow sheet
Logstorages: capacity of 2-3 months production full extension
40 log pieces with 6 m length per hour
40 log pieces with 6 m length per hour
Delivery requirements: 80 pieces with 6m length per hour;
1.920 pieces per day (24 hours / day) of production
13.440 pieces per week (7 days / week)
Logistic requirements: 37 trucks per day at 7 delivery days per week (20 tons loading weight per day)
52 trucks per day at 5 delivery days per week
Delivery requirements of biomasse for the hot-gas generator:
Required amount of biomasse: 44 t abs.dry per day = 75 t wet per day
525 t wet per week (7 days)
Logistic requirements: 5,25 trucks to average per day (5 delivery days per week; 20 tons loading weight per day)
Chipping and fractionating raw material: Drying raw material:
front loader Drum dryer: 5 t/h water evapuration
for 3. shift Hotgas-
Hammer-mill 1 Generator Output of dried material: 65.000 t/y quad screw bin
Drum shredder line 1 quad
5 MW with sieve
15 t/h abs.dry screw Feed input: 15 t/h w=40%; Outlet: 10 t/h w=10%
bin 1 30.000 MWh/y water evapuration: 5 t/h, working time: 6.500 hours per year
2 shifts = 4.335 h/a
= 65.025 tabs.dry/a with
= 72.250 tpellets/y sieve Hammer-mill 2
Ash:
Chipps deposite approx.1000 t/a
approx. 2.000 m3
Drum shredder line 2 Drum dryer: 5 t/h water evapuration
Hammer-mill 3 Hotgas-
15 t/h abs.dry quad Generator Output of dried material: 65.000 t/y quad screw bin
2 shifts = 4.335 h/a screw 5 MW with sieve
Feed input: 15 t/h w=40%; Outlet: 10 t/h w=10%
= 65.025 tabs.dry/a bin 2 30.000 MWh/y water evapuration: 5 t/h, working time: 6.500 hours per year
= 72.250 tpellets/y with
front loader sieve Hammer-mill 4
for 3. shift
Ash:
approx.1000 t/a
Pelletstorage: Pelletizing:
pellet water. 1.300 m3/y
press 1: rest bin:
5 t/h Pellet production
pellet hammer-
line 1. step conditioner
Pellet storage cooler 1: mill
65.000 t/y
Output: silo 1: < 12 t/h pellet
press 2: 6.500 h/a
up to 130.000 tons of Pellets per year 7.500 t
5 t/h
Ship loading system: 1. step: 65.000 t/y
500 t/h 2. step: 130.000 t/y
pellet water. 1.300 m3/y
press 3: rest bin:
Pellet storage 5 t/h
silo 2: Pellet production
pellet hammer-
7.500 t line 2. step conditioner
cooler 2: mill
pellet 65.000 t/y
< 12 t/h 6.500 h/a
press 4:
5 t/h
ing. büro längle gmbh – Austria – 6840 Götzis 2012-06-21 / Lg Flow sheet FS 20110728 Rev. 3
15. Set Milestones Planned dates
• Cash Drawdown Quarter 1 2013
• Commencement of logging and log preparation Quarter 1 2013
• Pellet plant delivered to site Quarter 3 2013
• Build & commission pellet plant Q3 2013 & Q4 2013
• First finished biomass pellet produced Quarter 4 2013
• First shipment (15-20,000 tons) dispatched Quarter 1 2014
16. Management Team and Staffing
• The project developer has a track record of delivery
in the commercial field in a number of sustainable
projects. The core management team has vast
experience, with senior members established in the
country. The pellet plant designer has specified
and managed several installations throughout
Europe.
• The project also benefits from high-level
government and community support, plus
established commercial links.
17. Investment Summary
• An offshore SPV will be created for this venture with 70% of
the shareholding being available to investors in return for the
sum of USD25m. The remainder of the share equity will be
held by the principals and management team.
• In support of this project, access to land, cost of the source
biomass, and land at the port have been granted at very
beneficial rates.
• The USD35m investment will cover the required permits,
equipment and cash flow to enable the operation to establish
the Pellet Plant and run operations until income is generated
in the 1st quarter of 2014.
18. Risks and Contingencies
• The pellet plant technology is ‘self contained’ and there is minimal
opportunity for operator-induced breakdown.
• Secure Internet access to the pellet production system enables the
installation expert to monitor production and adjust many production
variables. This can be done via any Internet access point.
• Regular preventative maintenance schedule is planned to prevent
unnecessary down time.
• Contingency for planned maintenance and unplanned downtime has
been built in with all production rates and financials being based on
74% utilization of the plant. This equates to 95 days permitted
downtime per annum before planned production volumes are
impacted.
• Feed stock supply is already arranged which will cover the 10 year
plan period.
