Opportunities and Challenges developing Biomass projects in Africa on the example of the BioTech company

A devastating Cycle destroying the Coconut Industrie

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!

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

CocoPellet Concept

Using the Biomass

from Estates/Plantations

Export of industrial

Pellets in bulk shipment to

Europe

Setting up of a 130 ton/year

Biomass Pellet Plant

Renewable energy exploitability and infrastructure availability in Africa

Forestry management aspects that can Be certified on basis of the FSC

Worldwide Economic crisis risk aversion to invest in Africa

Missing Southern African regions investment opportunities

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General Challenges and Opportunities we faced

Challenges of a green Idea to get an Investor (in Africa) Is it enough to have … •  a well elaborated Business

proposal •  Your financials and Investment

figures right •  Company Documents are all in

order •  Necessary supporting Letters

and approval from Government

Business'Plan'

!

Plan prepared by:

Peter Pichler

Version 2012-06-21

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

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.

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.

Factory capacity

CocoPellet Factory outline

Drum shredder line 115 t/h abs.dry

2 shifts = 4.335 h/a= 65.025 tabs.dry/a= 72.250 tpellets/y

Drum shredder line 215 t/h abs.dry

2 shifts = 4.335 h/a= 65.025 tabs.dry/a= 72.250 tpellets/y

Chipps deposite approx. 2.000 m3

Hammer-mill 1

Hammer-mill 2

Hammer-mill 3

Hammer-mill 4

quad screwbin 1with sieve

front loaderfor 3. shift

front loaderfor 3. shift

quad screwbin 2with sieve

Drum dryer: 5 t/h water evapuration

Output of dried material: 65.000 t/y

Feed input: 15 t/h w=40%; Outlet: 10 t/h w=10%water evapuration: 5 t/h, working time: 6.500 hours per year

Hotgas-Generator

5 MW30.000 MWh/y

quad screw bin with sieve

rest bin: Pellet production

line 1. step65.000 t/y 6.500 h/a

pellet press 1:

5 t/h

pellet press 2:

5 t/h

conditionerpellet cooler 1:< 12 t/h

rest bin: Pellet production

line 2. step65.000 t/y6.500 h/a

pellet press 3:

5 t/h

pellet press 4:

5 t/h

conditionerpellet cooler 2:< 12 t/h

1. step: 65.000 t/y

2. step: 130.000 t/y

Pellet storage silo 1:7.500 t

Pellet storage silo 2:7.500 t

Ship loading system:500 t/h

Ash: approx.1000 t/a

water. 1.300 m3/y

water. 1.300 m3/y

Logstorages: capacity of 2-3 months production full extension

Delivery requirements: 80 pieces with 6m length per hour; 1.920 pieces per day (24 hours / day) of production13.440 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)40 lo

g pi

eces

with

6 m

leng

th p

er h

our

40 lo

g pi

eces

with

6 m

leng

th p

er h

our

Chipping and fractionating raw material: Drying raw material:

Pelletizing:Pelletstorage:

Output: up to 130.000 tons of Pellets per year

ing. büro längle gmbh – Austria – 6840 Götzis 2012-06-21 / Lg Flow sheet FS 20110728 Rev. 3

BioTech Lda. Mozambique Cocowood Pellet Project Flow sheet

hammer-mill

hammer-mill

Drum dryer: 5 t/h water evapuration

Output of dried material: 65.000 t/y

Feed input: 15 t/h w=40%; Outlet: 10 t/h w=10%water evapuration: 5 t/h, working time: 6.500 hours per year

Hotgas-Generator

5 MW30.000 MWh/y

quad screw bin with sieve

Ash: approx.1000 t/a

CocoPellet Factory design

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

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.

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.

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.