Namibia
- Renewable Energy
- Further growth
- Waste Oil Re-refining
- US$ 27.000.000 (phased)
- Debt/Equity funding
30-09-2016: Recently the promoter has signed a MOU with a Canadian supplier of small-scale waste oil micro-refineries for the establishment of a Joint Venture.
The United States African Development Fund recently endorsed the viability of this project by choosing the promoters as one of the winners of the USADF Entrepreneurship Grant Competition, thus providing funds for research and development.
The promoter is a sustainable and renewable energy entity founded in 2013 aiming to address crucial economic and social issues within the energy sector. The entity is a fully registered closed corporation in Namibia with a broad-based professional component. They have thus far focused on addressing the threat to the local environmental biodiversity in Namibia, caused by illegal oil dumping, and developed a solution in the form of waste oil- to- fuel & waste oil-to-power generation that will not only solve the problem but also make a contribution to our local economy and national infrastructure.
The United States African Development Fund recently endorsed the viability of this project by choosing the promoters as one of the winners of the USADF Entrepreneurship Grant Competition, thus providing funds for research and development. In light of this, the promoters have engaged the services of a Sustainability Consulting agency in Netherlands, as well as a Sustainability Solutions Initiatives based in Phoenix USA as international advisors and partners towards developing the said concept. The company has further established a business model that focuses on drawing on local industry experience and exposure by forming strategic alliances with established institutions.
Problem introduction
The port of Walvis Bay, Namibia’s main harbour, is currently undergoing an expansion that will see its service scope extend to about three times its current capacity. While this comes as an exciting development for Namibia and the adjacent region due to envisaged increased trade and infrastructure development, it further highlights the ensuing environmental and social challenges plaguing the immediate community. The most obvious is the energy sector where the town authorities have chronically struggled with the illegal dumping of waste oil discharged from vessels serviced at the harbour. Current statistics stipulate that licensed companies discharge waste heavy fuel oil from docking vessels of which 20% is refined and the remaining 80% disposed of at a designated dumpsite allocated by the town’s municipality. Stringent regulations governing the dumping methodology have been put in place, specifically accentuating volumes, times and content of the waste heavy fuel oil to be disposed of but have hardly been complied to. This has thus drawn large concerns amongst environmental experts who, considering the amount of oil - estimated to be millions of litres - fear that the oil would eventually seep into and pollute the groundwater and the bird sanctuary adjacent to the dumpsite.
Project description
The promoters will use the currently illegally dumped fuel to produce affordable re-refined fuel, generate electricity and ultimately preserve the biodiversity of the surrounding environment by setting up a Hydrocarbon Management System that will support a 5MW waste fuel power plant. Recognizing the complexity of the proposed solution as well as the capital structures and inputs required, the promoters have resolved to segment the project into 2 phases. This will make the implementation and management of the solution less onerous and will allow the company to build credentials, experience and take on limited financial liability at a time. The phases for the project would be:
Phase 1
Setting up of the Hydrocarbon Management System
Phase 2
Erection and Commissioning of Power Plant
The Hydrocarbon Management System would comprise an offshore support vessel and a waste oil re-refining plant. The offshore support vessel would serve to bunker (provide fuel and discharge waste) ships offshore, offering a rare kind of service in Namibia, allowing the promoters to capture a large part of the waste fuel market as well as reduce the tendency of illegal oil dumping by providing an alternative disposal outlet for companies de-bunkering oil from vessels. The waste oil re-refining plant will offer the fledgling marine industry a sustainable source of fuel and will serve as an interim solution towards processing the waste oil. The regenerated diesel produced by this plant will be sold back to the vessels using the port in conjunction with the Namibian Petroleum Corporation and Total Namibia as well as on long-term contracts with the vast mines and industrial entities.
The business activities of this project will target and trickle down to the very base of the economy in helping empower local small and medium businesses by providing them with subsidized re-refined fuel through the Namibian Chamber Of Commerce and Industry, provide the underprivileged households with affordable fuel for cooking and heating, help ease unemployment by providing opportunities for graduates from the local Namibian Institute of Mining and Technology (NIMT) to enter into specialist jobs and ultimately help curb the ensuing national power shortage.
Results and Reach
The promoters have set their main objectives towards establishing a sustainable business model, preserving the natural ecosystem and finally impacting the local community. The tangible measures of success would thus be indicated by the achievement of the following miles:
Technology
The promoter’s have already worked together with the Dutch-based consultancy company to review best practices for the treatment and/or re-refinement of waste oil. A review of knowledge and experiences in Western Europe, more specifically in the Ports of Rotterdam and Amsterdam has been conducted in October 2015. The best technology was found to robustly combine the most viable waste fuel refining techniques into a robust system that ultimately vacuum distils hydrocarbons at sweltering temperatures to produce residues of commercially viable light and heavy fuels. The system was also found to be water and energy efficient as it utilizes waste water to hydrate its processes and heat from the combustion of the waste fuel to power the unit. A South African based sustainable energy-focused entity with extensive intellectual capital and knowledge of the energy sector spearheaded the design of the envisaged 5 MW power station.
Interested? For more information, please contact;
Office Africa
Kennedy Makimii
nmakimii@firmfactoryafrica.com
+254202448888
Office Europe
Jan Reijer Brons
jrb@firmfactoryafrica.com
+31653354494
The United States African Development Fund recently endorsed the viability of this project by choosing the promoters as one of the winners of the USADF Entrepreneurship Grant Competition, thus providing funds for research and development.
The promoter is a sustainable and renewable energy entity founded in 2013 aiming to address crucial economic and social issues within the energy sector. The entity is a fully registered closed corporation in Namibia with a broad-based professional component. They have thus far focused on addressing the threat to the local environmental biodiversity in Namibia, caused by illegal oil dumping, and developed a solution in the form of waste oil- to- fuel & waste oil-to-power generation that will not only solve the problem but also make a contribution to our local economy and national infrastructure.
The United States African Development Fund recently endorsed the viability of this project by choosing the promoters as one of the winners of the USADF Entrepreneurship Grant Competition, thus providing funds for research and development. In light of this, the promoters have engaged the services of a Sustainability Consulting agency in Netherlands, as well as a Sustainability Solutions Initiatives based in Phoenix USA as international advisors and partners towards developing the said concept. The company has further established a business model that focuses on drawing on local industry experience and exposure by forming strategic alliances with established institutions.
Problem introduction
The port of Walvis Bay, Namibia’s main harbour, is currently undergoing an expansion that will see its service scope extend to about three times its current capacity. While this comes as an exciting development for Namibia and the adjacent region due to envisaged increased trade and infrastructure development, it further highlights the ensuing environmental and social challenges plaguing the immediate community. The most obvious is the energy sector where the town authorities have chronically struggled with the illegal dumping of waste oil discharged from vessels serviced at the harbour. Current statistics stipulate that licensed companies discharge waste heavy fuel oil from docking vessels of which 20% is refined and the remaining 80% disposed of at a designated dumpsite allocated by the town’s municipality. Stringent regulations governing the dumping methodology have been put in place, specifically accentuating volumes, times and content of the waste heavy fuel oil to be disposed of but have hardly been complied to. This has thus drawn large concerns amongst environmental experts who, considering the amount of oil - estimated to be millions of litres - fear that the oil would eventually seep into and pollute the groundwater and the bird sanctuary adjacent to the dumpsite.
Project description
The promoters will use the currently illegally dumped fuel to produce affordable re-refined fuel, generate electricity and ultimately preserve the biodiversity of the surrounding environment by setting up a Hydrocarbon Management System that will support a 5MW waste fuel power plant. Recognizing the complexity of the proposed solution as well as the capital structures and inputs required, the promoters have resolved to segment the project into 2 phases. This will make the implementation and management of the solution less onerous and will allow the company to build credentials, experience and take on limited financial liability at a time. The phases for the project would be:
Phase 1
Setting up of the Hydrocarbon Management System
Phase 2
Erection and Commissioning of Power Plant
The Hydrocarbon Management System would comprise an offshore support vessel and a waste oil re-refining plant. The offshore support vessel would serve to bunker (provide fuel and discharge waste) ships offshore, offering a rare kind of service in Namibia, allowing the promoters to capture a large part of the waste fuel market as well as reduce the tendency of illegal oil dumping by providing an alternative disposal outlet for companies de-bunkering oil from vessels. The waste oil re-refining plant will offer the fledgling marine industry a sustainable source of fuel and will serve as an interim solution towards processing the waste oil. The regenerated diesel produced by this plant will be sold back to the vessels using the port in conjunction with the Namibian Petroleum Corporation and Total Namibia as well as on long-term contracts with the vast mines and industrial entities.
The business activities of this project will target and trickle down to the very base of the economy in helping empower local small and medium businesses by providing them with subsidized re-refined fuel through the Namibian Chamber Of Commerce and Industry, provide the underprivileged households with affordable fuel for cooking and heating, help ease unemployment by providing opportunities for graduates from the local Namibian Institute of Mining and Technology (NIMT) to enter into specialist jobs and ultimately help curb the ensuing national power shortage.
Results and Reach
The promoters have set their main objectives towards establishing a sustainable business model, preserving the natural ecosystem and finally impacting the local community. The tangible measures of success would thus be indicated by the achievement of the following miles:
- Increasing the percentage of dumped waste oil processed from 20% to 80%
- Acquiring of 40% of the waste fuel market within our 1st year of operations
- A maximum annual energy yield based on a 5 MW waste fuel power plant
- Creating 100 skilled and unskilled jobs
- Workforce measure of 100% Namibian skilled graduates
Technology
The promoter’s have already worked together with the Dutch-based consultancy company to review best practices for the treatment and/or re-refinement of waste oil. A review of knowledge and experiences in Western Europe, more specifically in the Ports of Rotterdam and Amsterdam has been conducted in October 2015. The best technology was found to robustly combine the most viable waste fuel refining techniques into a robust system that ultimately vacuum distils hydrocarbons at sweltering temperatures to produce residues of commercially viable light and heavy fuels. The system was also found to be water and energy efficient as it utilizes waste water to hydrate its processes and heat from the combustion of the waste fuel to power the unit. A South African based sustainable energy-focused entity with extensive intellectual capital and knowledge of the energy sector spearheaded the design of the envisaged 5 MW power station.
Interested? For more information, please contact;
Office Africa
Kennedy Makimii
nmakimii@firmfactoryafrica.com
+254202448888
Office Europe
Jan Reijer Brons
jrb@firmfactoryafrica.com
+31653354494