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The Promoter
The promoter is a registered Energy company formed in 2008 in South Africa. The promoter wants to create wealth but at no expense to the environment or social well being. All their projects are designed to be very profitable, green, and sustainable and to create jobs. The promoter wants to franchise their technology in the form of joint ventures with sawmills, forestry companies, agricultural cooperatives, individual farmers, municipalities and villages or communities.
The founders have been funding this initiative out-of-pocket and as the projects with the various Departments take a long time to conclude, they have decided to pursue a more commercial approach at this point in time to generate positive cash flow to sustain the business. The promoter is very passionate about social upliftment projects and beliefs that these projects can make a discernable impact on the bottom of the pyramid in Africa. In order to achieve these goals the promoter has to pivot and focus on commercial projects initially.
Technology
1. Biomass Conversion Combination Plant (BCCP);
The promoter has developed a continuous pyrolysis process (rotary horizontal kiln), branded the Biomass Conversion Combination Plant, which converts 468 tons per month, 24 hours per day, 6 days per week of dry organic material i.e. sawdust, veldt grass, sewage sludge, rubber, forest waste, agricultural waste, garden greens, etc. concurrently into a high calorific value Charcoal (25.9% Yield = 117 tons per month), Oil (45.2% Yield = 205 ton) and Gas/Electricity (400kW per hour)(0.3kW per Kg of Sawdust);
Charcoal Markets:
Oil Markets:
Gas / Electricity Markets:
2. Jenga PowaStove (JEP)
A domestic co-generation unit (generates both heat & electricity concurrently), which provides a single off-grid household with both heat for thermal applications e.g. cooking (stove), baking (oven), space (heater) and water heating (geyser), and electricity for 4 lights, cell phone charger, fridge, TV and radio. Input 120Kg Charcoal (Jenga Charkettes), Output: kWt 1161 + kWe 3 per month = Total combined energy (thermal + electricity) output of 1164 kW. Electricity generated at ZAR 0.54 / kWh.
The Jenga PowaStove unit has been designed to be operational 4 hours per day from 18:00 to 22:00, during which time the generator will supply electricity to the lights, TV, etc. but will also at the same time charge a battery to power devices when no fire is lit. A secondary input for a solar panel has been added, for solar charging during daylight hours for a very efficient hybrid system to solve all the energy needs of the household.
The above technologies can be utilized in a holistic approach for a social upliftment projects, the BCCP provides the charcoal fuel for the JEP, so that indigenous forests are not consumed as fuel for the JEP unit and the JEP provides an immediate market for the charcoal produced by the BCCP. The 2 technologies together will provide the following solutions to a Municipality:
Three feasibility studies to do the above has been completed for the Bushbuckridge Local Municipality, the Umvoti Local Municipality and the iLembe Regional Municipality, these projects are all waiting funding from various Government departments. Contracts were signed in March 2011 between the promoters, the Department of Energy (DOE) and the Bushbuckridge Municipality for a pilot project to the value of R38.8 million, the funding did not materialize at that time but the promoters are currently engaging with the DOE to see if the project can be resuscitated (looks positive at this point).
Business Model
Ownership and franchisees
The promoter wants to set up 300+ Biomass-to-Value conversion projects throughout South Africa, as biomass is dispersed by nature, where they will either own or franchise the Conversion Asset (BCCP) within a Joint Venture structure. Whether the “franchisee” is a Sawmill, or a forestry company like SAPPI, a Municipality, a Village or Community or an individual Farmer, it is immaterial to them as it requires entities with biomass to convert said biomass into value and the promoters will sell these commodities into the various markets. As the promoters will sign off-take agreements with various parties initially, whilst it is establishing its own refinery to produce its own brand of fertilizer, pesticides, herbicides, bio-diesel, jet-fuel, etc. it will as the Franchisor ensure maintenance is done correctly on all BCCPs and that production ensures sufficient product for the various markets.
First project to show the solution to prospects
The promoters will place its first BCCP at Digger’s Rest Timber Company, a sawmilling operation outside Tzaneen, where they will convert their waste sawdust into 230kW of electricity per hour, 121 tons of high quality, semi activated charcoal per month and a 205 tons of crude oil per month. A third party will provide a site free of rental, a building for the BCCP and a guaranteed supply of the required sawdust to a Joint Venture NewCo, the BCCP will consume all the waste sawdust, currently simply burnt in a furnace, generate electricity from the gas produced which will be given to the third party at no cost and the parties will share in the income from the off-take agreements for the charcoal and oil (available on request). Once this BCCP is operational all other sawmills, as well as other producers of biomass waste in Southern Africa will be invited to view the solution the BCCP offers in reducing input costs (free electricity), eliminating waste and increased revenue (charcoal and oil) and increasing their ROI.
Second project
After the second BCCP will be placed in Piet Retief in a Joint Venture with another partner, 9 other projects are to follow once the business case has been proven (ZAR 360 million) successful. In this business model the promoter will sign a fiber supply agreement with the partner at ZAR 340.00 per ton of biomass. The biomass will be converted into charcoal, oil and gas.
2 feasibility studies for social upliftment projects
The promoter has completed 2 feasibility studies for social upliftment projects in Umvoti and iLembe in Kwa-Zulu Natal. These projects have been designed to create job opportunities, reduce poverty and to create a dignified life for people employed at the BCCP. In essence they are creating a village level GDP by adding value abundant biomass resources, exporting the value-added products which creates a positive cash flow for the village, the profits pay for the project cost and pay the salaries and excess profit can be invested to create even more products (agricultural and industrial) to create wealth and a better quality of life. The promoter wants to create another entity to trade with the rest of Africa, this entity might be established in Mauritius but other suggestions will be considered.
Documents at your disposal:
The promoter is a registered Energy company formed in 2008 in South Africa. The promoter wants to create wealth but at no expense to the environment or social well being. All their projects are designed to be very profitable, green, and sustainable and to create jobs. The promoter wants to franchise their technology in the form of joint ventures with sawmills, forestry companies, agricultural cooperatives, individual farmers, municipalities and villages or communities.
The founders have been funding this initiative out-of-pocket and as the projects with the various Departments take a long time to conclude, they have decided to pursue a more commercial approach at this point in time to generate positive cash flow to sustain the business. The promoter is very passionate about social upliftment projects and beliefs that these projects can make a discernable impact on the bottom of the pyramid in Africa. In order to achieve these goals the promoter has to pivot and focus on commercial projects initially.
Technology
1. Biomass Conversion Combination Plant (BCCP);
The promoter has developed a continuous pyrolysis process (rotary horizontal kiln), branded the Biomass Conversion Combination Plant, which converts 468 tons per month, 24 hours per day, 6 days per week of dry organic material i.e. sawdust, veldt grass, sewage sludge, rubber, forest waste, agricultural waste, garden greens, etc. concurrently into a high calorific value Charcoal (25.9% Yield = 117 tons per month), Oil (45.2% Yield = 205 ton) and Gas/Electricity (400kW per hour)(0.3kW per Kg of Sawdust);
Charcoal Markets:
- Charcoal to braai or BBQ with,
- Activated charcoal,
- No-smoke fuel to replace dirty energy carriers such as low-grade coal and fuelwood for domestic cooking and heating applications, and,
- Biochar to add to soil which increases crop yields from 58% to 100%1.
Oil Markets:
- Boiler fuel.
- 2Bio-diesel,
- Jet fuel,
- Liquid fertilizer,
- Liquid pesticides andherbicides
- A range of 300 other chemicals
Gas / Electricity Markets:
- Thermal applications i.e. drying or heating or,
- Electricity 230kW – 400kW per hour.
2. Jenga PowaStove (JEP)
A domestic co-generation unit (generates both heat & electricity concurrently), which provides a single off-grid household with both heat for thermal applications e.g. cooking (stove), baking (oven), space (heater) and water heating (geyser), and electricity for 4 lights, cell phone charger, fridge, TV and radio. Input 120Kg Charcoal (Jenga Charkettes), Output: kWt 1161 + kWe 3 per month = Total combined energy (thermal + electricity) output of 1164 kW. Electricity generated at ZAR 0.54 / kWh.
The Jenga PowaStove unit has been designed to be operational 4 hours per day from 18:00 to 22:00, during which time the generator will supply electricity to the lights, TV, etc. but will also at the same time charge a battery to power devices when no fire is lit. A secondary input for a solar panel has been added, for solar charging during daylight hours for a very efficient hybrid system to solve all the energy needs of the household.
The above technologies can be utilized in a holistic approach for a social upliftment projects, the BCCP provides the charcoal fuel for the JEP, so that indigenous forests are not consumed as fuel for the JEP unit and the JEP provides an immediate market for the charcoal produced by the BCCP. The 2 technologies together will provide the following solutions to a Municipality:
- Dump sites organic waste disposal, extending the landfill lifespan and reducing the production of greenhouse gasses
- Off-grid Electricity (households with no access to electricity)
- Job creation
- Social upliftment
- Free basic energy
- Reduction of ambient pollution
- Green economy participation
- Reduce Carbon footprint
- Eradication of IAP’s
- Increase ground water reserve,
- Improved Service delivery,
- Increase Local GDP,
- Additional income streams for the Municipality.
Three feasibility studies to do the above has been completed for the Bushbuckridge Local Municipality, the Umvoti Local Municipality and the iLembe Regional Municipality, these projects are all waiting funding from various Government departments. Contracts were signed in March 2011 between the promoters, the Department of Energy (DOE) and the Bushbuckridge Municipality for a pilot project to the value of R38.8 million, the funding did not materialize at that time but the promoters are currently engaging with the DOE to see if the project can be resuscitated (looks positive at this point).
Business Model
Ownership and franchisees
The promoter wants to set up 300+ Biomass-to-Value conversion projects throughout South Africa, as biomass is dispersed by nature, where they will either own or franchise the Conversion Asset (BCCP) within a Joint Venture structure. Whether the “franchisee” is a Sawmill, or a forestry company like SAPPI, a Municipality, a Village or Community or an individual Farmer, it is immaterial to them as it requires entities with biomass to convert said biomass into value and the promoters will sell these commodities into the various markets. As the promoters will sign off-take agreements with various parties initially, whilst it is establishing its own refinery to produce its own brand of fertilizer, pesticides, herbicides, bio-diesel, jet-fuel, etc. it will as the Franchisor ensure maintenance is done correctly on all BCCPs and that production ensures sufficient product for the various markets.
First project to show the solution to prospects
The promoters will place its first BCCP at Digger’s Rest Timber Company, a sawmilling operation outside Tzaneen, where they will convert their waste sawdust into 230kW of electricity per hour, 121 tons of high quality, semi activated charcoal per month and a 205 tons of crude oil per month. A third party will provide a site free of rental, a building for the BCCP and a guaranteed supply of the required sawdust to a Joint Venture NewCo, the BCCP will consume all the waste sawdust, currently simply burnt in a furnace, generate electricity from the gas produced which will be given to the third party at no cost and the parties will share in the income from the off-take agreements for the charcoal and oil (available on request). Once this BCCP is operational all other sawmills, as well as other producers of biomass waste in Southern Africa will be invited to view the solution the BCCP offers in reducing input costs (free electricity), eliminating waste and increased revenue (charcoal and oil) and increasing their ROI.
Second project
After the second BCCP will be placed in Piet Retief in a Joint Venture with another partner, 9 other projects are to follow once the business case has been proven (ZAR 360 million) successful. In this business model the promoter will sign a fiber supply agreement with the partner at ZAR 340.00 per ton of biomass. The biomass will be converted into charcoal, oil and gas.
2 feasibility studies for social upliftment projects
The promoter has completed 2 feasibility studies for social upliftment projects in Umvoti and iLembe in Kwa-Zulu Natal. These projects have been designed to create job opportunities, reduce poverty and to create a dignified life for people employed at the BCCP. In essence they are creating a village level GDP by adding value abundant biomass resources, exporting the value-added products which creates a positive cash flow for the village, the profits pay for the project cost and pay the salaries and excess profit can be invested to create even more products (agricultural and industrial) to create wealth and a better quality of life. The promoter wants to create another entity to trade with the rest of Africa, this entity might be established in Mauritius but other suggestions will be considered.
Documents at your disposal:
- Business plan
- Various LOI's and Off Take Agreements
- Lab test results
- Income and Cash Flow projections