ENVALOR LIMITADE
Project:
Ethanol / Electricity Co-generation PlantMozambique, Manica Province
November 5, 2009
Envalor Limitade
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• A Company Formed in Mozambique
• Focus - Infrastructure Development Project:
• Fuel Grade Ethanol plant - 150 Million Litres
• Electricity generation plant - 32 MW/h
• 25000 ha of Cultivated land (Sugar Cane, Dry Beans)
• Estimated Project Cost: US$ 330 Million
Lead Developer - InfraCo
• Focus: Infrastructure Project Development that promotes Sustainable Socio-Economic Growth;
• Region: Sub-Saharan African Region;
• Sectors: Energy, Transportation and Water;
• Infraco has a number of projects underway in Africa:• Uganda - Multi Utility Project (Project Cost: US$ 40 Million);
• Cape Verde - Wind Power (Project Cost|: EUR 55 Million);
• Zambia - Irrigated Farm Development (Project Cost: US$ 25 Million);
• Ghana - Gas Fired Power Plant (Project Cost: US$ 300 Million);• Mozambique - InfraCo is playing a lead role in developing an “investment
blueprint” for the Beira Agricultural Growth Corridor (BAGC);
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Infraco is working with Casachron to carry out this project.
Project Scope
• Produce 150 Million Litres of anhydrous fuel grade Ethanol
• Sugar cane (Primary feedstock);
• Sweet Sorghum (Secondary feedstock);
• Sold to the export market with availability to the domestic market;
• Produce 32 MW/h Electricity (Bagasse)
• An estimated 22MW/h used by the plant and the excess exported to the national grid;
• Food production
• The production of 10 000 tonnes per annum of dry beans is planned;
• Agriculture
• To deliver feedstock to the plant and produce food, approximately 25000 ha of cultivated land will be developed;
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Product
Ethanol Production - 150 Million Liters per annumEthanol Production - 150 Million Liters per annum
• Biochemical process from Sugar cane juice or molasses;
Product Demand
• There is a global annual increasing demand for ethanol as a vehicle fuel, which has been concluded as an excellent energy alternative to oil;
• The EU is anticipated to face an ethanol deficit of up to 7.5 Billion Liters per annum by year 2020;
• It is envisioned that a considerable volume of this Ethanol could come from Africa;
5Ethanol Plants – Colombia, BrazilEthanol Plants – Colombia, Brazil
Product
Electricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/hElectricity Production - Bagasse > Boiler / Steam / Electrical Power - 32MW/h
• We plan to use a high pressure bagasse - fired boilers/steam system to generate electricity;
• 22 MW/h is estimated to be used by the plant;22 MW/h is estimated to be used by the plant;
• 10MW/h is estimated to be tapped off to the national grid;
• Bagasse is considered renewable and environmentally neutral;
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Power Lines - Power Lines - fairly close to sitefairly close to site
BagasseBagasse Boiler / TurbineBoiler / Turbine
Product
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Agriculture• Food Production – Soya Beans considered (Protein)
• Based on Mozambique’s food needs
• Sugar cane and Sweet sorghum production
Project Goals• A cost effective commercially viable operation;
• Environmentally - non-invasive;
• A quality product delivered - Fuel Grade Ethanol for the export market with availability to the local market, Electricity, Food;
• Environmentally friendly electricity generation - excess for local market;
• Food production and fuel security for the host country Mozambique;
• Through an estimated 1800 Jobs created, an improved standard of living for the residents in the area and a considerable impact to the economy;
• Transfer of skills to previously disadvantaged communities;
• A new market for farmers, jobs and social and health care services;
• The project is focused on complying with the requirements as set out in the “political and strategic framework for biofuels of Mozambique”;
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Mozambique’s Needs
• This project is intent on complying with all of the requirements as outlined by the Mozambique Government, which are broadly:
• Significant project participation by the local community and Mozambique in general;
• The local community to be respected;
• Food to be produced;
• Mozambique to have first rights to Ethanol at market prices;
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The Mozambique Government has confirmed its commitment to the bio-fuel program
Environment & Social
• Strict Compliance - Through execution there will be strict compliance with World Bank / IFC and Mozambique (MICOA) environmental and social standards;
• Environmentally positive - Ethanol and electricity production using sugar cane and sweet sorghum as the feedstock will be positive on the environment;
• Infrastructure - In a controlled fashion to insure effective execution, the project proposes to allocate funding for housing and relocation for the local community;
• Employment - It is anticipated the operation will employ approximately 1800 People;
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Business Case
• A preliminary financial model, with assumptions, represents the project as financially feasible;
• US$ 330 Million is the estimated turnkey cost of developing:
• 25000 ha Cultivated Land;
• 150 Million Litre Anhydrous Ethanol Plant;
• 32 MW/h Electricity Generation Plant;
• The cost of the project will be confirmed when assumptions and additional cost variables have been qualified.
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Assumptions
• Agricultural Assumptions -
• Water (volumes and cost of sourcing);
• Soil type and quality across site;
• Feedstock yield - general agricultural variables;
• Technical Assumptions - cost and volumes of product produced;
• Environmental and Social Assumptions - useable area ;
• Logistics Assumptions - Haulage and transportation costs;
• Legal and Regulatory Assumptions.
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Site Selection And Location
Why This Site?
A high-level evaluation has been executed on this site which confirms the following:
• Good indicative potential for the required water volumes and costs to source water;
• Good indication of the required soil types and soil quality across the site;
• Indicated to be environmentally and socially manageable;
• Good road infrastructure to Beira for distribution of product;
• Access to electricity transmission lines - fairly close to the site;
• Identified to be available (No concession held on the site).
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Development Process
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Next Steps
Fatal Flaw Analysis
• Provincial Authorities endorsement of the project and the use of the land identified for the project;
• Formal application for the land;
• Environmental and social assessment pre-scoping;
• Detailed assessment of soils, water and irrigation;
Begin Development Phase
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