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CADPROJECTINCALIFORNIAINVESTORSINTRODUCTION2011
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CAD Project in California
AbstractCalis' main goal is to seek for highgrowth opportunities in the renewable energy arena, primarily in the Anaerobic Digestion sector.
The company will develop Central Anaerobic Digestion projects (CAD, known also as "central biogas projects") in California, under the Renewable Auction Mechanism (RAM) program, which was addopted in the state on December 17th, 2010, and will manage the plants during the 20 years period of the Power Purchase Agreement (PPA).
The company is led by Erez Dolev. Being the founder and former CEO of Ledico Green as well as the former CFO of Ledico Bosch, Erez has a vast experience in renewable energy technologies and posesses a wide knowledge in finance.
The RAM programCalifornia Public Utilities Commission (CPUC) adopted on December 17th, 2010, a
new program, named Renewable Auction Mechanism (RAM). The goal of the
RAM program is to provide a simplified contracting mechanism that will enable
smaller projects to compete in California's mandatory renewable energy market.
Thus, the utilities will procure up to 1,000 MW of renewable systemside energy
projects, up to 20 MW in size, that are eligible for the California Renewable
Portfolio Standard (RPS) program.
Important to know:
The total capacity is allocated among the three utilities based on retail
sales (SCE, PG&E, SDG&E).
There will be four auctions over a two year period.
Bids of Feedin Tariff (FiT) are to be selected based on price, with the
lowest price first, until the utility's minimum is reached for each auction.
In order to reduce transaction costs and streamline the approval process,
the RAM requires the use of PPAs with nonnegotiable standard terms
and conditions.
Link to the RAM decision: http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/128432.pdf
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Why CAD?Anaerobic Digestion projects (known also as biogas projects) produce energy from the Methane that can be extracted out of organic waste. Moreover, the organic waste convertion procces produces also other stable and commercially useful compounds. As a general rule, larger plants are more efficient. Therefore, Central Anaerobic Digestion projects (CAD), that collect different types of organic waste feedstocks, from varied sources (e.g. diaries, markets, food manufacturers etc.), are higly profitable. A typical CAD process is depicted in the following diagram:
Source: www.rutherfordrenewables.co.uk
The main advantages of CAD over other renewable energy projects:
No need for subsidies – grid parity Produces energy 24 hours a day Not depands on one source of raw material High entry barriers – requires specific knowledge Several revenue sources (electricity, heat, gate fees, fertiliser) Favorable by green organizations and state authorities due to high
environmental benefits Greenhouse Gases reduction
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Business Plan
The ProjectsThe plants will be Central Anaerobic Digestion (CAD) for production of electricity and heat from biogas, 5MW to 20MW in size depands on the availability of feedstock.
The PPA will be signed with one of the following utilities: PG&E, SCE, SDG&E.
Calis will be responsible for all stages:
Business plan Strategic location (interconnection and feedstock supply) Permits and authorizations Feedstock supply agreements FiT auction and PPA Financial closing EPC negotiation Equipment procurement Project management Management and maintenance of the CAD plant for 20 years
Business PlanUsing our and other specialists' knowledge base, we built a very accurate
business plan with sensitivity tests taking in account each and every aspect of the
CAD plant construction and opperation.
The business plan includes:
Gas Production from Feedstock mixture calculation Monthly Allocation of Feedstock and Gas Generation Fertiliser Value of Digestate Closed Periods (if needed) Revenues from the Biogas Capital Payment Schedule Overhead Costs Financial Summary Profit & Loss Source & Disposition of Funds Balance Sheet Technical Dash Board Sensitivity Tests Feedstock Values Calculation
In appendix A you may find some screenshots of the Business Plan
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Summary
In the following months we will raise the funds for the first project. Receiving this document gives you the opportunity to take part in it and to invest in the following projects as well. We offer you to join other investors with part of the required equity in order to expose yourself and your company to the knowledge and experience of this amaizing project and to the future renewable energy oportunities this group of investors will be exposed to.
We will be glad to elaborate more about the project and the business plan in person.
Contact InformationErez Dolev
Mobile +972508500647
Email [email protected]
Web www.calisgroup.com
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Appendix A – Business Plan Screenshots
Gas Production from Feedstock Mixture
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Monthly Allocation of Feedstock and Gas Generation
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Fertiliser Value of Digestate
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Revenues from the Biogas
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Capital Payment Schedule
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Overhead Costs
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Financial Summary
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Financial Reports
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Technical Dash Board
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Sensitivity Tests
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Feedstock Values Calculation
