Biodiesel Investment

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Who Should Invest in Biodiesel Crops?

Individuals

  • Management
  • Friends & Family
  • High Net Worth
  • Public Markets

 

Funds

  • Hedge Funds
  • Venture Capital Funds
  • Real Estate Funds
  • Private Equity Funds

 

Institutions

  • Banks
  • Investment Banks
  • Insurance Companies
  • Pensions & Endowments

 

Corporations

  • Energy Companies
  • Agricultural Companies
  • Energy Users

 

Governments

  • Local Provinces
  • Agencies
  • Other

 

Worldwide renewable energy investment of $150 billion in 2009 represented nearly 40 percent of annual investment in the upstream oil and gas industry, which topped $380 billion And renewable accounted for about 57 percent of global investment in power generation of all forms in 2009, estimated at $320 billion. At a time when the world’s headlines are dominated by a deep-water oil spill in the Gulf of Mexico, coal mine accidents, and gyrating fuel prices, renewable energy is rare good news to a very different energy system that will begin to emerge over the next decade. To ensure it , political leaders will need to continue enacting additional and effective policies, engineers and scientists will need to continue creating new technologies, and businesses will need to continue investing if this bright new future is to be realized. But for those who are paying attention to the trends, there is now good reason to be optimistic that hard work and dedication will be rewarded in the near future—and this knowledge will itself fuel the future

The world needs affordable and clean energy to fuel economic growth, development, and democracy without harming the environment. Ensuring access to ample, affordable, clean, and sustainable sources of energy is unquestionably one of the greatest challenges facing the modern world. Rapid growth in primary energy consumption, especially in developing countries, and continued deforestation – the single largest source of greenhouse gas emissions – have combined with rising concerns over energy security and climate change, to strengthen demand for renewable energy. Biofuels hold the promise of a viable alternative to oil. They are a solution that could simultaneously provide energy security while dramatically reducing the heat-trapping emissions responsible for climate change. At the same time, these fuels could offer new economic opportunities for rural communities. Not only is energy consumption expected to expand significantly by 2030, but alteration of the fuel mix to reduce reliance on fossil fuels is considered vital to the reduction of greenhouse house gases, which means that the market for environmental assets, renewable energy and clean technologies is truly global. Given such potential benefits, more than 80 countries are investing heavily in biofuels and have established legal requirements to steadily increase the volume consumed each year with Sustainability: Meeting today's needs for environmental stewardship, economic prosperity, and quality of life without compromising future generations' ability to meet these needs for them.

The use and need of biofuel is now more or less established, and recognised worldwide and it appears that biodiesel is the leading alternative fuel coming into prominence

The combination of these factors presents an opportunity for the construction of a diverse, balanced, lucrative portfolio of Biodiesel Properties and carbon assets

 

The Role of BIOBIJALI

Centre for Jatropha Promotion & Biodiesel (BIOBIJALI ) is the Global authority for scientific commercialization of Jatropha & other non-food Biodiesel crops and designs and implements the growing of non-food Biodiesel crops worldwide in a structured Agri-Supply chain, Value additions and research activities thereon & provides technology and services from “Soil to Oil” for the breeding, development, planting and harvesting of next-generation commercial Biodiesel crops.

BIOBIJALI  is dedicated to the development of oil green oil plantation and technologies in order to reduce dependence on fossil fuels bring greater control and security of fuel supply and reduce dangerous climate changing emissions, including CO2.  BIOBIJALI ’s field-present agronomic teams are responsible for creating the agronomic protocol for crop management as well as the implementation of Integrated Fuel Farming Management System (IFF) which serve as a set of practical ground rules. These continue to prove significantly effective in obtaining higher yields while considerably reducing industry-related risks.BIOBIJALI  is well positioned to play a leading role in the commercialisation of green oil plantation and in sustainable growth in the production of biodiesel and environmental commodities. BIOBIJALI  has extensive on the ground experience in project implementation. The BIOBIJALI  has also strategically attracted and employed market leader executives to expand its management capabilities. BIOBIJALI  can provide the required technical expertise, management capacity, technologies and commercial focus to support widespread green oil operations. By entering a management contract with Project developer/investor/client that will be able to access this expertise and the ensuing Biodiesel Plantation investment opportunities.

 

Use of Capital

Assuming a total investment of $ 3,500,000 investment project is implemented in biodiesel plantation in 1000 ha, and the structure of the investment strategy, based on actual projects currently available to BIOBIJALI , could be summarized as follows:   

 

Illustrative Structure of the Investment Strategy

Investment Components

Figures

Assumed total fund size

$ 3.500 Million

Green oil Plantation investment

$ 1.700 m

 Biodiesel production

$ 0.840m

Capital protection element

$ 0.175m

Inflationary reduction in capital value

$ 0.060m              

“Capital Reserve”                                                               

$ 0.175 m

WC/Securities

$0.550 m

 

Further details about the implementation of the investment strategy referring to the specific opportunities currently available with BBA, a BIOBIJALI  arm are outlined below.

The following tables outline the key assumptions and performance parameters underlying this investment.

Product Revenue Profiles

Yield per Ha                                       

                First Crop

Asset or Cash Crop

Jatropha  2.6 tonnes

24 months

Both (250/ha)

Sweet Sorghum                                

  • 10 tonnes Grain

               

6 months              

 

Cash Crop

  • 10 tonnes Jiggery           

6 months

Cash Crop

  • 40 tonnes Biomass         

6 months

 

Castor   2 tonnes                                              

6  months

Both (

Pongamia            14 tonnes                                           

 48 months

Asset (250 ha)

Simarouba         10 tonnes

48 months

Asset (250 ha)

Moringa             9 tonnes

12 months

Asset (250 ha)

 

Biodiesel Financial Highlights
1000 ha Biodiesel Plantation                        $1700000
Oil yield per hectare                                    3.0 tonnes
Total Oil revenues                                        $ 1820 /ha per year
Oil revenues net of operating costs                $1260/ha per year

A more detailed financial projection that depicts alternative scenarios based on differing assumptions is available in the context of any investment proposal/expert report/business plan follow-up discussions.

We formulate and provide Independent Expert Report to biodiesel companies/investors/venture capital for IPO and other Investments purpose

NDEPENDENT EXPERT REPORTS: FINANCIAL & ECONOMIC ANALYSIS

INDEPENDENT MARKET RESEARCH on the Biodiesel Market

INDEPENDENT EXPERT REPORTS : Technology Report

INDEPENDENT EXPERT REPORTS: Feedstock Production/ Supply Report

FINANCIAL AND ECONOMIC ANALYSIS

 

FINANCIAL ANALYSIS

  • Estimate the annual investment and production cost of the project.
  • Prepare the necessary financial statements such as balance sheet, income statement, source/application of funds statements (cash Flow statements)
  • Calculate the Financial Net Present Value (FNPV) and Financial Internal Rate of Return (FIRR).
  •  Calculate Financial Ratio, if there is a need.

 

ECONOMIC ANALYSIS

  • Calculate Economic net present value (ENPV) and Economic Internal Rate of Return ( EIRR)
  •  Indicate some other economic benefits such as employment generation as a result of the project intervention in the project areas.

For further queries regarding investment proposals/ independent expert report quite please contact to our green investment consultant or mail to us

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