green energy biomass, j.s.c. · green energy biomass, j.s.c. (geb or the company) is the first...
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Green Energy Biomass, J.S.C.
‘Shovel Ready’ Commercial Expansion Fully Sustainable Production Model
Environmentally & Socially Responsible Rich Commercial Potential
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Coâng ty Coå phaàn Naêng Löôïng Xanh Biomass Việt
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Green Energy Biomass, J.S.C.
A Jatropha-based, smallholder-produced biofuel feedstock company
Green Energy Biomass, J.S.C. (GEB or the Company) is the first for-profit Vietnamese company purpose-structured to deliver market access for smallholder-produced energy biomass
GEB is a Jatropha-based feedstock company producing an ethical, and sustainable second generation feedstock. Cultivated on marginally-productive lands, Jatropha production avoids upward pressure on food prices and negative impact on high-conservation ecologies (Jatropha v. 2.0)
GEB partners with Vietnamese smallholders by delivering free agronomy stock, training in sustainable methodology, on-going input support and of course, the guaranteed purchase of all produced biomass
GEB assists in building capacity with local cooperatives as the contractual partner in the value chain. The purchase agreement offers guaranteed price floors and win/win division of margin increases due to rising petroleum prices
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• Conducted R&D on agronomic methodologies for Jatropha production that is replicable for GEB producers (smallholders)
• Developed and built capacity of vendor supply chains for production inputs for ‘best practices’ methodology employed
Enjoyed exclusive R&D collaboration with The Center for Biotechnology in Forestry (the Central Vietnamese government’s primary agency on Jatropha) including a four year trial program in multiple provinces with scores of Jatropha varieties
• Executed contractual relations with its commercial planters (Viet co-ops) and yield security oversight (people’s committee) yielding a first-of-its-kind long term guaranteed purchase agreement with sustainability issues as part of its obligations
US$2.5 million pilot equals mitigated start-up, execution and agronomic risks
The Smallholder
A Sustainable Feedstock Production Unit Low-carbon methods
Low-chemical fertilizer use
No disturbance of high conservation ecologies
No substantial food production displacement
Persistent –care delivers high yields
Deliver shareholder value
Contribute to developmental goals
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GEB’s Contractual Partners Commercial Cooperatives and Small/Medium Enterprises (SME) deliver:
Voluntary members’ low-carbon production (Cooperatives)
Rural poor employees using low-carbon production (SMEs)
Professional management personnel
Business-to-Business cooperation
Centralized distribution and collection
Professional extension services (farmer training)
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Sustainable Production Areas
This is Vietnam But so is this
Sustainability guidelines put emphasis on bare, open lands (5 million hectares: MoNRE)
Appropriate agronomic characteristics for Jatropha
Dynamic economy (GDP growth 7%-9% annually)
Massive internal Vietnamese market (7 million tons of diesel consumed in 2009)
Large workforce local to production (population 88 million, 70% rural)
Comparative advantages of Vietnam for biofuel feedstock production
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Production (Land Access) MoNRE states there
are 5-6 million hectares of marginal
lands in Vietnam
MARD states it wants 300,000
hectares of Jatropha by 2015
Ninh Thuan DARD states 52,000 hectares available
for energy crops like Jatropha in NT alone
Green Energy Biomass’ expansion plan calls for 25,000 hectares over five
years
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Green Energy Biomass contracts
with 20 cooperatives in each province
Green Energy Biomass’ expansion plan calls for 25,000 hectares over five
years
Green Energy Biomass operates in four South and
North Central provinces
In the busiest year, no cooperative needs to plant more than
150 hectares
Province Total 2011 2012 2013 2014 2015
Binh/Ninh Thuan 8,500 1,000 1,000 1,500 2,500 2,500
Quang Nam 3,900 200 200 500 1,500 1,500
Hue 6,300 400 400 1,500 2,000 2,000
Quang Tri 6,300 400 400 1,500 2,000 2,000
25,000 2,000 2,000 5,000 8,000 8,000
Production Establishment
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Production Field Math
One hectare produces
approximately 4.5 tons of seeds
1.5 tons of Crude Jatropha Oil (CJO)
3 tons of Jatropha Seedcake
Crude Jatropha Oil (CJO) is equivalent to rape seed oil in its use as a biofuel feedstock
Jatropha Seedcake is a clean replacement for wood, coal or charcoal
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Green Energy Biomass’ 25,000 hectares at maturity produce:
37,500 tons of CJO 87,500 of seedcake
Income Math
In a petroleum environment of US$80/bbl:
GEB prices CJO at US$871/ton (12% discount to rapeseed) Seedcake at US$50/ton
US$36 million in annual revenues
Vietnamese smallholders produce 4.5 tons of Jatropha seeds per hectare
At US$80/bbl environment, GEB pays farmers US$95/ton for seeds
Additional to smallholder’s income US$427/ha./year
Rural communities’ total additional income
US$11 million/year
Pricing Rape and Crude (Forecast)
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