i. project/program description - climate investment funds · pdf filecif project id#: 3. ......
TRANSCRIPT
![Page 1: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/1.jpg)
1
ConceptNotefortheUseofResourcesfromtheFIPCompetitiveSet‐Aside
1. Country/Region: Brazil/MinasGerais
2. CIFProjectID#:
3. Project/ProgramTitle:
Macauba– PlantOilwithImpact
4. DateofEndorsementoftheInvestmentPlan:
May18th,2012
5. FundingRequest(inmillionUSDequivalent):
Grant:N/A Non‐Grant (loan,equity,guarantee,etc.):3millionUSD
6. ImplementingMDB(s):
Inter‐AmericanDevelopmentBank(IADB)/FOMIN
X PrivatesectorarmPublicsectorarm
7. ExecutingAgency:
8. MDBFocalPointandProject/ProgramTaskTeamLeader(TTL):
Headquarters‐ FocalPoint:
GloriaVisconti
ClimateLeadSpecialist
IADB
TTL:
GregoryWatson
ClimateSeniorSpecialist
FOMIN
I. Project/ProgramDescription
MACAUBA–PLANTOILWITHIMPACT–DESCRIPTION
ByestablishingagroforestrysystemswithMacauba,theprojectaimstobuildthefirstvaluechainforvegetableoilproductionwithoutlandusechangeinBrazil.Macaubapalmtreeswillbeintegratedintoexistingpastureskeepingthenumberofcattleconstant.Hence,vegetableoilproductionwillnotreducethepastures’productivity.TheprojectislocatedintheCerradoregionofAltodoParanaiba,MinasGerais,Brazil.ItdirectlytranslatesknowledgeandexperiencefromaEuropeanUnion‐fundedEUR2.7mresearchprojectatLeuphanaUniversityLuneburg(Germany)intoaction.Inthecontextofthisresearchproject,afeasibilitystudywasconductedinMinasGerais2012‐2013.Intotal,300tonsofMacaubafruitswereharvestedtoempiricallyanalyzethetechnicalfeasibility,economicviabilityandsustainabilityoftheproposedsystem.1
1Thestudycanbedownloadedhere:http://www.leuphana.de/fileadmin/user_upload/portale/inkubator/download/Summary_Macauba_Feasibility_Study.pdf.
Picture 1) Wild Macauba trees on pasture land
![Page 2: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/2.jpg)
2
Macauba(Acrocomiaaculeata)isapalmtreewhich isnativetotheCerradoprojectregioninBrazil(seePicture3,maponnaturaloccurrence). yieldsatleast30‐40kgfruitperpalmp.a.(upto130kgperpalmwereobservedduringthe
feasibilitystudy),whichcanbeprocessedintoplantoil,animalfodderandadensebiomassgranulate.
needssignificantlylessprecipitationthantheconventionaloilpalm(Elaeisguineensis)andisresistanttodroughts.2
canbeintegratedintoexistingpastureswithoutreducinggrassyieldsasdemonstratedbytheCentroAgronómicoTropicaldeInvestigaciónyEnseñanza.3
Macaubaisharvestedaftercoffeeprovidingadditionalincomesforworkerswhenseasonalunemploymentratestraditionallyrise.Macaubapulpandkerneloilhaveasimilarcompositionandqualityasconventionalpalmoilandpalmkerneloil,respectively,andcouldbecomesubstitutesforthoseproducts.
IntheBrazilianCerrado,500,000km2(=50millionha)ofpasturesareavailable,mostofwhicharesuitableforMacauba.Withthisapproach,oilquantitiesexceedingthesizeoftoday’stotalglobalpalmoilmarketcanbeproducedwithoutanyimpactsonfoodsecurityornaturalecosystems.
Thetotalfinancingvolumerequiredfortheproject(debt+equity)amountstoUSD6m.Theprojectwillserveasaflagshipmodel,incubatinganewindustrywithsignificantpotentialtoscale.FIPfundingisrequiredtobridgethepioneergapandestablishthesilvopastoralMacaubapilot.
ThisprivatesectorproposalwillcomplementthepublicsectorprojectsincludedintheInvestmentPlan(IP),testingnewmodalitiesthatwillengageSmallandMediumEnterprises(SMEs).WhiletheprojectspresentintheIPwillcreatetheenablingconditionsforprojectstohappen,thepresentproposalwillputinpracticeaprivatesectorapproachthatwilladdupenvironmentalandsocialbenefits.
2 Fabianie de Gois Aquino et al: Distribuição geográfica das espécies Acrocomia aculeata (Jacq.) lodd. ex Mart. e Caryocar brasiliense cambess. no bioma Cerrado, 2008. 3 Villanueva et al. (2008): Disponibilidad de Brachiaria brizantha en potreros con diferentes niveles de cobertura arbórea en el trópico subhumedo de Costa Rica., Centro de Agricultura Tropical de investigación y Enseñanza. Turrialba, Costa Rica.
Picture 2) Agroforestry system with Macauba trees on pasture land
![Page 3: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/3.jpg)
3
IMPLEMENTATION
Theprojectwillincludethefollowingtwoelements:
A. EstablishingaMacaubaTrainingCenter
i. TheCenterwilltrainandenablesmallholderstoincreaseanddiversifytheirincomesbyharvestingthefruitsofexisting(wild)Macaubapalmtrees.
ii. AnexistingoilmillandstoragefacilitieswillbeenhancedandupgradedbytheCentertoprocessthecollectedMacaubafruitsinordertodemonstratesmallholderfarmersthatMacaubaisaprofitablebusiness.
iii. TheCenterwillraiseawarenessforMacaubaproductsbyprovidingtestvolumestocompaniesproducingoilbasedproducts,animalfodder,andnutshellgranulateandtherebyprovethatthereisamarketforMacauba.
ThescopeofthetrainingcomponentwillaimtoensuretheinclusionofMacaubaasanaspectinthemanagementofproductionsystems,includingimprovementandpasturemanagement.
B. Implementinga2,000haagroforestrysystemwith300Macaubatreesperhectareasacommercialpilotproject
i. Workwithsmallholderfarmers,whoaremembersofacattlecooperative,tointegrateMacaubapalmsontheirpastures.
ii. Buildupanurserytoprovidesmallholderswithsaplings.
BothelementsareexplainedindetailinChapterV(BusinessModel).
Inyear5,furtherinvestmentwillbeattractedtobuildalarge‐scaleoilmilltoprocessfruitsfromthe2,000hapilot(thesevolumescannotbehandledbytheoilmilloftheMacaubaTrainingCenter).Thislargescaleoilmillwillbefundedthroughseparateprivatesectorresourcesandisnotpartofthisproposal.
Overall,theprojectwillcomplywithallrelevantcriteriaandstandards,includingwiththosesetbytheFIPandtheIDB/MIF.Furthermore,projectimplementationwilloccurinaccordancewithBrazilianlegislationandinparticularwithCAR(CadastroAmbientalRural),theforestcodeandlaborlaws.
EXPECTEDOUTCOMES
1. DirectImpacta. Establish2,000hectareofagroforestrysystemwithMacaubab. Sequester575,000tonsofCO2andavoidemissionsfromdeforestation(seenext
sectionfordetails)c. Generateincomeopportunitiesinperiodsofhighseasonalunemployment
![Page 4: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/4.jpg)
4
d. GeneratetotalincomeofaboutR$28m(>USD13m)forharvestworkersandsmallholderfarmersinthefirst20yearsandoverR$48m(>USD22m)when30projectyearsaretakenintoaccount(seesocialimpactfordetails)4
2. Createascalable,profitablebusiness
a. Break‐Evenafter7yearsb. StableannualturnoverofminimumUSD4.4m(fromyear10)c. StableannualEBITDAofminimumUSD2m(fromyear10)d. Createpositivespill‐overeffects
II. FITWITHINVESTMENTCRITERIA
Theproposedprojectaddresses“Theme1‐Managementanduseofpreviouslyanthropizedareas”,specifically“1.2‐Sustainableproductioninareaspreviouslyconvertedtoagriculturaluse(basedupontheABCPlan)”oftheFIPinvestmentplanBrazil,whichwill
“seektopromotesustainablelanduseandforestmanagementimprovementintheCerrado,thesecondlargestbiomeinBrazilandSouthAmerica,contributingtoreducingpressureontheremainingforests,reducingGHGemissionsandincreasingCO2sequestration”.
ThegoaloftheprojectistoestablishaprofitableflagshipprojectshowcasingthescalablepotentialofsilvopastoralMacaubatosequestercarbonandreducethepressureonexistingforestsandotherimportantecosystemhotspotsintheCerradoregion.Theprojectwillreducegreenhousegas(GHG)emissionsofvegetableoilproduction(ascomparedtoconventionalproductionmodels)andpromotefoodsecurityintheCerrado.
Webelievethatthisproposalmeritsconsiderationforinvestmentbecause
Ittacklesmajoreconomic,ecologicandsocialchallengesinBrazilandtheCerradotargetregion,particularlyinhillyregionsthataredifficulttoaccesswithagriculturalmachines,leavingextensivecattlefarmingastheonlyviableagriculturaluseofland.
ItfitstoFIPtargets,theexistingframeworkandtheBrazilinvestmentstrategy(seebelow).
TherearesignificantresearcheffortsonMacaubainthetargetregion:apartfromtheprogramatLeuphanaUniversity(Germany),thereisastrongresearchnetworkonMacaubainvolvingunitsofEmbrapaandseveralBrazilianuniversitiesaspartofthe“ProPalma”project.5Additionally,PetrobrashasinvestedR$5minMacaubaresearch.OurprojectisthefirstcommercialimplementationoftheMacaubaresearchandservestobridgethepioneergap.
ThereisstrongpoliticalsupportforMacaubainMinasGerais:Tosupportthedevelopmentofpioneerprojects,theStateofMinasGeraishasimplementedtheso‐called
4 Newly planted Macauba palms produce fruits after five years. Each year additional Macauba trees will be planted on pastures. Consequently, total yearly incomes for smallholders and harvest workers increase over time. 5 Embrapa, 2012 (http://www.embrapa.br/imprensa/noticias/2012/agosto/3a-semana/macauba-no-mercado-de-bioenergia/).
![Page 5: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/5.jpg)
5
Pro‐MacaubaLawto“[…]encouragethecultivation,extraction,marketing,andconsumptionofMacaubaproductsand[…]promotethedevelopmentofMacaubaprojects,preferablybycooperatives,involvingallactorsinthesupplychain”(LEINº19.485,2011).6
Ithasenormouspotentialtobescaledupinthefuture:MostexistingpasturesintheCerradoaresuitableforMacauba,asindicatedbylargenativeMacaubastands(seepicture2above)
Takentogether,aftersuccessfultrialsandseveralfeasibilitystudiesconductedbyuniversities,theprerequisitesforasuccessfulprojectaregiven.Afirst‐moverisrequiredtoimplementthefirstlarge‐scaleprojecttoleveragetheindustry.AnFIPinvestmentwillestablishanimportantlandmarkprojectwithsignificantspillovereffectsandscalablepositiveimpact.
THEFIPCRITERIA:
Additionally
ThisprojectisunlikelytobefinancedwithouttheFIPProgram.TheMacaubaindustrysuffersfromthepioneergap:InspiteoftheextensiveresearchdescribedaboveanddespitetheProMacaubaLawestablishedin2011,thereisstillnotasingleMacaubapilotproject.
Currently,innovativevegetableoilprojectswithnovelspeciessufferfromhesitatingprivateinvestors.Amongthereasonsforinvestors’reluctancetoinvestinoil‐bearingperennialsare–amongstothers–negativeexperienceswithJatropha.Worldwide,over200milliondollarshavebeeninvestedinJatrophaprojects–manyofwhichfailedtoyieldtheexpectedoilvolumesandhenceshowednegativefinancialreturns.Lackofagronomicknowledgeontheplantwasoneofthemainissues,whysomanyprojectsfailed.7ThisisnotthecaseforMacaubabecauseoftheintenseandregionallyfocusedresearchontheplant.Asthe2,000hectaresofMacaubaagroforestrysystemswillbeplantedexactlyintheareawheretheresearchhasbeenconductedandthousandsofwildMacaubascanbefound,knowledgeistransferable–whichwasoftennotthecaseinJatrophaprojects.
Yet,pioneeringinvestmentisveryunlikelytobedonebyprivateinvestorsalone.Astreesofanovelspeciescannotserveasanasset,financialriskmitigationviacollateralsisdifficulttoachieve.Onesolutionwouldbetoacquireland,whichhowevercontradictstheobjectivetomaximizepositivesocialimpacts.Therefore,concessionalfinanceisneededtoreducerisksforprivateinvestors.Reducingasset‐backingburdensviaFIPfinancingwillhelptheprojecttofullyfocusonscaleandimpact.
Furthermore,asthefirstprojectofitskind,investmentincapacitybuildingandtrainingwillbesignificantlyhigherthanforsubsequentprojects.Thishasproventobeaninvestmentbarrierforclassicinvestors.FIPfundingandtechnicalassistancewillhelptoovercomethisbarrier.Ourprojectwillbeabletodevelopbestpracticesforestablishingsilvopastoralsystemswithsmallholderfarmers,whichcanbeappliedbyfutureprojects.Reducinguncertainty,thiswillfacilitatefutureprojectstoaccessconventionalfinancing.
6 LEI Nº 19.485, 2011. http://www.agenciaminas.mg.gov.br/noticias/governo-de-minas-regulamenta-o-pro-macauba/. 7SeeLeuphanaUniversity(2013)InsightsintoJatrophaProjectsWorldwide(http://www.leuphana.de/fileadmin/user_upload/portale/inkubator/download/Studie_Insights_into_Jatropha_Projects_Worldwide.pdf).
![Page 6: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/6.jpg)
6
Picture 3) Natural occurrence of Macauba
Duetothesignificantinvestmentsincapacitybuildingandthetimedifferencebetweenplantingandfirstharvest,theprojectwouldnotbeviablewithoutrelativelylowinterestrates.Atlast,ourrigoroustriple‐bottom‐lineapproachisonlypossiblewithbelowmarketinterestpayments.
ClimateChangeMitigationPotential Baseline:pasturesremainunchanged Leakage:accordingtotheUNFCCCapprovedafforestationandreforestationbaseline
andmonitoringmethodology,8leakagefromestablishingsilvopastoralsystemsonpuregrasslandcanbecountedaszero.
Carbonstorage:accordingtoToledoetal.,UniversidadeFederaldeViçosa,theaverageCO2sequesteredineachMacaubapalmamountsto958kgpertree;accordinglythetotalcarbonstorageof2,000hawith300treesperhectareamountsto575,000tonsofCO2.
Indirecteffectscomprisereducedpressureonexistingforests:plantingMacaubagenerateshigherincomesforlocalfarmersandcreatesadditionaljobopportunities.Ratherthancuttingdownforestsinordertoincreasepasturesizesandhenceincomes,localfarmerscouldparticipateinthevegetableoilbusinessandbenefitfromitshigherreturns.
DemonstrationofpotentialatscalePasturescover50mhectaresoftheBrazilianCerrado.MacaubaisalreadynativetomostpartsoftheCerradoandcouldbecultivatedintheentireregion(seepicture).Thebusinessmodeliseconomicallyviableandcanbescaledupworkingwithfurthercooperatives,aswellasindustrialcattlefarmers.IntheprojectregionofPatosdeMinasalone,594.000haofpasturesareavailable.9
Inthemediumterm,itseemsrealistictosubstitutetheentireBrazilianpalmoilimports.Theseimportsarecurrentlyabout200,000tonsp.a.10andthecountry’simportdependencyisrising‐afact,theBraziliangovernmentcurrentlyseekstoreduce.11About200,000haofsilvopastoralMacaubaplantationarerequiredtocutBrazil’spalmoilimportstozero.Achievingthisplantationsizewithin20yearsseemstoberealisticsince:
8 United Nations Framework Convention on Climate Change (2012): AR-AM0009. 9 Source: Official cattle statistics, State of Minas Gerais.10 Source: index mundi, U.S. Department of Agriculture. 11Toencouragethesubstitutionforimportedpalmoil,thegovernmenthasestablishedthe“ProPalma”Programandpalmoilissubjecttoimportduties.
![Page 7: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/7.jpg)
7
WithCoopatosasapartner,upto98,000haofpasturescanbeaccessedwithoutrequiringanychangesinpartnershipsandcommunicationchannel.
Coopatosowns51%ofCemil,acooperativeofcooperatives,makingafurtherscale‐upofthemodelrealistic.
AdditionalcooperativeshavealreadybeencontactedandexpressedinterestinsilvopastoralMacaubaplantations.
TheMacaubaTrainingCenterwillreachouttofarmersandharvestworkersnotassociatedwithCoopatosandalsoinviteNGOsandcooperativestopresenttheopportunitiesarisingfromMacaubacollection.
Potentiallongtermimpact:Withover50mhaofCerradopasturespotentiallysuitableforsilvopastoralsystemswithMacauba,thelong‐termMacaubapotentialinBrazilexceedsthecurrentglobalpalmoilproductionvolume.Thispotentialcanberealizedbyleveraginganinnovativeafforestationmethod–asopposedtodeforestationformonocultures.Theapproachiseconomicallyviablewithsmallholderintegrationintraining,employmentandincomediversification.
Insummary,nationalmarketdemandforpalmoilishighandthegovernmentpromotestheproductionoflocalpalmoilequivalents.Theproductionpotentialisequallyhighand200,000hectaresofsilvopastoralsystemscouldbeachievedwithintwodecadeswithfurtherexpansionpotentialinthelongrun.
CostEffectivenessTheFIPfundingislikelytotriggerrelevantprivatesectorinvestmentsinassetssuchasoilmillsaswellasinadditionalprojects.Furthermore,sinceamajorityofpreparatoryandsupportingresearchwasfundedthroughtheEU‐projectatLeuphanaUniversityLuneburgandotheruniversities,theadditionalinvestmentswilldirectlybeappliedtotheactualimplementationoftheMacaubaflagshipproject,ratherthanfurtherresearchanddevelopment.WhiletheexpecteddirectGHGreductionduringthelifeoftheprogramperFIPdollarinvestedamountsto5USD/tonofCO2,indirecteffectsaresignificantlymorepronounced:plantingMacaubaincreasesincomesperhectareoflandforsmallholdersandhencereducespressuretologremainingforests.Whilepalmoilplantationfrequentlyresultedinrainforestdestructioninthepast,Macaubaoilcanserveasadeforestation‐freesubstitute.
ImplementationPotentialTheimplementationwillbeconductedincooperationwiththelocalmilkcooperative“Coopatos”.Buildingupontheestablishedcommunicationandgovernancestructureswithinthecooperative,theprojectwillbeabletoachievealargesocialimpactwithhighimplementationfeasibility.
SafeguardingtheIntegrityofNationalForestsMacaubapalmtreeswillbeintegratedonlyonexistingpastures,hencesafeguardingtheintegrityofnationalforests.Moreover,plantingMacaubatreesallowsmitigatingsomeoftheimpactsofdeforestation:Clearingforestsaffectswindvelocityandchangesintemperatureandrainfallpatterns.Treecanopiesblockthesun’sraysoverthedayandholdinheatatnight.Whenentireareasaredeforested,thisleadstomoreextremetemperatureswingsthatcanbeharmfultoplantsandanimals.Whilerainfallissignificantlyhigherover
![Page 8: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/8.jpg)
8
thewarmer,deforestedland,rainfallovertheremainingforestscanbereducedby50%ormore.12Therefore,changinglandusefromforesttocroplandreducesrainfalloverneighboringforeststhreateningthoseremainingecosystems.IntegratingMacaubapalmtreesintopasturescreatesacanopycoverofapproximately30%,hencereducingtheamplitudeoftemperatureswingsbyprovidingshade.Moreover,evendispersedtreesactaswindbreaksandsequestercarbon.Forthisreason,agroforestrysystemswithpastures(silvopastoralsystems)havebeenacceptedasafforestationandreforestationactivitybytheUNFCCC.Moreover,Macaubasilvopastoralsystemscansubstituteforpalmoilplantationswhichhavebeenestablishedattheexpenseofrainforestsinthepast.Averageyieldsofpalmoilplantationamountto3.5tonsofoilperhectare13whilesilvopastoralMacaubaplantationsyieldaboutonetonofoil.Consequently,200,000hectaresofMacaubaagroforestrycouldsubstituteover55,000hectaresofpalmoilplantation–potentiallysavingthesameamountofrainforest.
IntegratingSustainableDevelopment(Co‐Benefits) Environmentaleffects:
Asdescribedabove,plantingMacaubatreescanmitigatetheeffectsofdeforestationandincreasecarbonsequestration.Byprovidingshade,Macaubatreescanalsoreducethewaterconsumptionofcattle.Asanativespecies,Macaubatreesincreasebiodiversity,providingfoodandshelterforanimals.
Socialeffects:
Morethan200,000peopleinMinasGeraisworkoncoffeefarmsduringtheharvestseason.Afterthecoffeeseason,unemploymentratesgenerallyrise.AsMacaubaharvesttakesplacefromOctobertoJanuary,i.e.afterthecoffeeharvest,itcreateswell‐paidadditionalincomeopportunitiesforworkers.GrowingMacaubaincreasesincomesforsmallholderfarmersandhencelocaltaxes.WorkersinthefeasibilitystudyearnedonaverageR$73perdayi.e.R$1600permonth14withharvestingnativeMacaubastands.Thisisequivalenttomorethantwicethemonthlyminimumwagein2012.WhenallplantedMacaubatreesreachmaturity,15theprojectwillcreate250‐350ofthosejobsfromOctobertoJanuaryreducingseasonalunemploymentoutsidethecoffeeharvestpeaks.
Overtheperiodof20years,harvestwillamounttoabout300,000tonsoffruitswhichyieldsaboutR$18m(>USD8m)toworkers.When30projectyearsaretakenintoconsideration,thisamountincreasesaround500,000tonsyieldingapproximatelyR$32m(USD15m16).
12 NERC (2011), NASA (2004). 13Source:RoundTableonSustainablePalmOil.14 Calculation based on 22 working days. 15 The first newly planted Macauba palms will reach maturity in year 5, the last palms in year 10. 16 Exchange rate June 2013, please note that exchange rates are strongly fluctuating.
Picture 4) Biodiversity: Macauba as a habitat
![Page 9: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/9.jpg)
9
Moreover,smallholderfarmerswhoplantMacaubawillreceivea“Macaubalandlease”dependingonthefruityieldperhectare.Smallholderscanhencedecidewhethertheywanttoorganizetheharvestthemselvesorreceiveacompensationforthevolumesharvested.Intotal,“landlease”paymentstosmallholderfarmerswillamounttoaboutR$10m(>USD4.5m)overthefirst20yearsandR$16m(>USD7.5m)overaprojectedperiodof30years.
Intotal,smallholderfarmersandharvestworkerswillearnaboutR$28m(>USD13m)inthefirst20yearsandmorethanR$48m(>USD22m)inthefirst30.
Thesecalculationsdonotyetincluderevenuesfortheprojectmanagementteam,nurserystaffandextensionservice(9FTE),aswellastruckdrivers.Theoilmill,whichwillbefundedbytheprivatesector,alsocreatesadditionalincomeopportunities.
Systemicimpact:Establishing200,000hectaresofsilvopastoralsystemwouldallowforasignificantsubstitutionofBrazilianpalmoilimportsandisarealisticdevelopmenttargetinthenextdecades.Suchaplantationsizewouldrequire25,000‐30,000harvestworkersandgenerateincomeopportunitiesforseveralthousandsofsmallholderfarmers.
III. TypeofPrivateSectorEngagement
Theprojectisafullyprivateinitiative.TheprojectisbasedonacooperationbetweenINOCASGmbH,Luneburg,Germany,andParadigmaOleosVegetaisinCarmodoParanaiba,BrazilwhichhasalongstandingandexceptionalexperiencewiththeMacaubavaluechain,andthecooperativeCoopatos.Coopatosmembersaresmallholdermilkproducerswith60haofpasturelandonaverage(furtherinformationonthepartnersintheannex).TheprojectbenefitsfrompubliclyfundedresearchsuchastheresearchprojectattheLeuphanaUniversityLuneburg.
IV. Innovation
Theproject’smaininnovativecomponentisitsbusinessmodel,whichhasnotbeenappliedanywhereinthisformyet.Agroforestrysystemsassucharenotnewbythemselves.Yettypically,theproductintheforestrypartofthesystemistimber.Inourmodel,theMacaubatreesarenotplantedtoharvestwood,buttocreateanothersetofmarketableproducts(Macaubaoil,animalfodder,granulate)withthefollowingadvantages:
Comparedtoothercontractfarmingmodels,riskexposureofsmallholdersissignificantlyreduced.FarmersdonothavetocovermaterialcostsforplantationsbutonlycontributelabortoestablishandmaintaintheMacaubatrees.Monetaryexpensesarecoveredbytheprojectventure.Thisisoneofthereasons,whytheproposedprojectrequiresconcessionalfinancing.
Manyprojectsinvolvingplantingoftreesfailbecausesmallholdersfearthatnocompanywillbetheretobuytheirproductsinafewyearstime.Forthisreason,itisvitalandalsoaninnovativeelementofourmodeltohaveaprocessingfacilityavailablerightfromthestartoftheproject(intheMacaubaTrainingCenter,seebelow).Thisway,weactivelydemonstratetheexistenceofamarketforthesmallholders’products.Pastexperiencesshowthatneglectingthiscrucial
![Page 10: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/10.jpg)
10
Fruits after drying Separation of dried fruits The oil press Picture 6) Processing of Macauba Fruits
psychologicalfactoroftenleadstosignificantfailuresinintroducingadditionalcropstotraditionalfamilyfarmerstructures(seeforexampletheexperienceswithCastorinBrazil).
Inthepast,therewaslimitedknowledgeabouttheprocessingofMacaubainBrazil.However,ParadigmaOleosVegetaishasdevelopedaninnovativesystemtoprocessMacaubainalargescaleandefficientmanner.Itisalreadyputintopracticeinasmallfacility(upto3,500toffruitp.a.)andservesasablueprintforlargerscalefacilities.
V. Technology,Product,and/orBusinessModel
TheprojectusesatechnologydevelopedbythelocalpartnerinBrazilandwillestablishapilotforafullMacaubavaluechainintheprojectregion.Theprojectcoversthefollowingelements:
1. HarvestingandprocessingofMacaubafruitsandmarketingofproducts(performedbytheMacaubaTrainingCenter)
2. Establishingofa2,000haMacaubaagroforestrysystem(includingsaplingproduction)
1. HarvestingandprocessingofMacaubafruit
TheharvestoffruitfromexistingMacaubatreesisorganizedbyharvestworkerswhotypicallyworkincoffeeuntilJuly/August.TheMacaubafruitbunchesarecutwithknivesfittedonlongsticksandcollectedinbigbags,whicharethentransportedbytractorsandloadedontrucks(seepictures).Asstatedabove,the2012/2013Leuphanafeasibilitystudy(300tharvested)foundthatharvestworkersearnedabovetwicethenationalminimumwage.
Forprocessing,Macaubafruitswillbedriedinadryerfueledwithwood.Afterdrying,theoutershellandpulpareseparatedfromtheharder,innershell(“endocarp”).Thepulpwillbepressedtogainpulpoilandpulppresscake.Theendocarpwillbecrushedtoseparatethesoftkernelfromitshardshell(seepicture).Theinnerkernelis
Fruits are collected …which are taken by …or next to the road …bags are unloaded at in big bags… tractors either to trucks… (& picked up by trucks later)… the oil mill. Picture 5) Macauba harvesting process
![Page 11: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/11.jpg)
11
thenfurtherprocessedintokerneloilandkernelpresscake.Theendocarpshellisprocessedintoahigh‐qualitygranulate.Forallproducts,localmarketsareavailable(seebelow).Companiesindicatedtheirinterestsand/orsignedlettersofintentforthepurchaseofthefullproductspectrum.
TheMacaubaoilmillinthepicturesisrunbyParadigmaandwasusedduringtheLeuphanaUniversityfeasibilitystudy.Itisoperational,butneedstechnicalupgradesallowingforamoreefficientproductionwhenusedbytheMacaubaTrainingCenter.
2. Establishingofa2,000haMacaubaagroforestrysystem(incl.saplingproduction)
SmallplantsareeitherproducedfromMacaubaseedsorcollectedaswildgrowingsmallplants.Theywillremaininanurseryfor6to18monthsuntiltheyreachthenecessaryheight(ideally>1m)tobetransplantedintothefield.Thenurserywillprovidetheplantsforthesmallholderfarmers.
ThesilvopastoralsystemwillbeestablishedincooperationwithCoopatos,alocalmilkcooperative,whichwillhelptoaddresscattlefarmersintheregion.Coopatosmembershave98,000hectaresofpasturelandundermanagement.ThoseparticipatingintheprojectwillbecompensatediflossesresultingfromreducedlandavailabilityinthefirstyearsafterplantingMacaubatreesoccur.Availabilityofthelandforcattlemaybereducedforaninitialperiodof24months,becausenewlyplantedpalmsneedtobeprotectedfromcattle,forexamplebyfences,untiltheyreachasufficientheight.
Asdescribedabove,farmerswillnothavetopayforsaplingsorothermaterialcost,butonlycontributelabor.The2,000hawillbeestablishedstepbystepoverafour‐yearperiod.
AssoonastheMacaubatreesbearfruit,theprojectwilleither1. harvesttheMacaubafruitsonthefarmers’landpayingfarmersacertainpriceperkg
harvested,2. orpurchaseharvestedandcollectedfruitsforahigherpricefromthefarmers
ThecooperativeCoopatoswillcontributelogisticalsupport.ToassistfarmerswithgrowingandmaintenanceofMacauba,theprojectventurewillprovideanextensionservice,andagronomistswillvisitfarmersonaregularbasis.
VI. Market
Macaubafruitsareprocessedinto
i. Oil:pulpoilandkerneloilii. Animalfodder:pulpandkernel
presscakeiii. Granulategainedfromprocessing
theendocarp.
Picture 7) Macauba Fruit and its Components
![Page 12: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/12.jpg)
12
I)MACAUBAPULPANDKERNELOIL
Theoilgainedfromtheouterpulpiscomparabletopalmoil;theoilfromtheinnerkerneliscomparabletopalmkerneloil.PalmandpalmkerneloilimportstoBrazilincreasedatarateof13%and24%p.a,onaverageoverthelast10years,respectively.In2012netpalmoilimportsintoBrazilreachedabout200,000tons,netpalmkernelimports385,000tons.AccordingtotheBrazilianSecretariatforSocialCommunicationtheimportedpalmandpalmkerneloilsareusedinchemicalsaswellasarawmaterialinsoaps,shampoosanddetergents.17Inadditiontothoseproducts,Macaubaoilissuitableforbiodieselproduction.Inthecontextofthisproject,thefirstvolumesofMacaubaoilproducedwillbesoldtoanoleochemicalcompany.
Inthelongrun,MacaubaoilisalsosuitableasbiodieselfeedstockpromotedbytheBrazilianSocialFuelSealProgram(SeloCombustíveSocial),whichaimsatintegratingsmallholderfarmersinbiodieselfeedstockproduction.Thecriteriadefinedbythesealarefulfilledbythecooperative.PricesofMacaubaarelikelytobelinkedtopalm(soapandoleochemicals)orsoybeanoil(biodiesel)dependingonthemarket.
II)ANIMALFODDER
Aftertheoilsareextractedfromthefruit,theremainingpresscakerepresentsavaluablecattlefoddercontainingfiberandproteins.Macaubafruitsarealreadyusedtofeedcattlebysomefarmers.DuetoBrazil’sgrowingmeatandmilkdemand,volumesrequiredtofeedthecountry’sherdarecontinuouslyincreasing.Domesticsoybeanmealuse,dedicatedtofodderproduction,increasedfrom10mtonsin2002to17mtonsin2012.Again,Macaubacanhelptomeetgrowingnationaldemand.
Whilebeingusedbysomefarmers,Macaubapresscakeisnotknownasafodderingredientbylargefodderproducers.Thisrepresentsamarketbarrier.Likefortheoil,theprojectwillfirstproducesmalleramountsofpresscake.CollectingandprocessingfruitsfromexistingwildMacaubapalms,cooperativesandotherlargescalefodderproducerscantestMacauba‐containingfodderintrialsofseveralthousandtons.Inyear5oftheproject,whenlargevolumesofMacaubafruitsbecomeavailable,fodderproducerswillbemorefamiliarwiththeproduct.
AnimalFodderPrices(SoybeanMealandCorn)2003‐2013[USD]
Prices:Soybeanmealandcornpriceswhicharerelevantfoddercomponentshavemorethandoubledoverthepastdecadeandareexpectedtoriseinthefuture.Source:indexmundi,U.S.DepartmentofAgriculture
17 SECOM, 2013 (http://www.brasil.gov.br/para/press/press-releases/may/brazil-launches-national-program-for-environmentally-sustainable-palm-oil-production/br_model1?set_language=en).
0
100
200
300
400
500
600
700
Mar 03
Dec 03
Sep 04
Jun 05
Mar 06
Dec 06
Sep 07
Jun 08
Mar 09
Dec 09
Sep 10
Jun 11
Mar 12
Dec 12
Soybean meal
Corn
![Page 13: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/13.jpg)
13
III)GRANULATE
Grindedendocarpcanbeusedasrawmaterialforactivatedcarbonproduction,forthesandblastingindustry,and,duetoacomparativelyhighcaloricvalue,asfuel.Inaddition,carboncreditsgeneratedbytheprojectwillbeanadditionalsourceof incomewhichhelpstoovercomeinvestmentbarriers.
VII. FinancialPlan(Indicative)
TherequiredfinancingofatotalofUSD6mwillservetosetup
a) TheMacaubaTrainingCenterincludinganupgradeoftheexistingoilmillfortheprocessingofapproximately1,500tofwildgrowingMacaubafruitp.a.and
b) A2,000hasilvopastoralsystem.
Thefollowingtablepresentsasplitofthesubcomponentsoftheproject(intermsofmainexpenseitemsinthefirstsixyearsoftheproject),andtheassumedsourcesoffinancingforthesecomponents.PleasenotethatallnumbersarecalculatedinBrazilianRealandthenconvertedintoUSDollaratanexchangerateof0,44(July24,201318).Thesenumberscanserveasanindicationforhowandwherefundswillbeapplied.Actualrequiredfinancingvolumemightdifferascertainrevenuesarenotconsideredhere.Also,duetostrongfluctuationsinexchangeratesin2013,theUSDollaramountcandifferfromtheUSD6.0mindicatedabove(atpresent:USD5.9m)
A)MacaubaTrainingCenter In‘000R$ In‘000USDFinancingSource
Investmentinassets 250 111 Debt(FIP)+equity
Training&Support 400 178 MIFGrantSubtotal 650 289
B)2,000haagroforestrysystemPlanting(largestcostfactors:nursery,fertilizers,protectionofsaplings)
7,500 3,336 Debt(FIP)+equity
ExtensionService 1,700 756 MIFGrant
Others(largestcostfactors:workingcapital,management,vehicles,etc.)
3,400 1,513 Debt(FIP)+equity
Subtotal2,000haagroforestry 12,600 5,605
Total 13,250 5,894
18Exchangerate24thJuly2013,Source:oanda.com.
![Page 14: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/14.jpg)
14
TheprojecthasatotalrevenuepotentialofaboutUSD5mwhichcanbereachedafter10years.Inthefirst5years,revenueswillstayatarelativelymodestlevelofapproximatelyUSD0.5m.Duringthattime,incomesaremainlycreatedbytheMacaubaTrainingCenter.AsMacaubatakes4‐5yearsuntilthefirstharvestispossible,revenuesoftheplantationcomponentwillonlykick‐inafterthattime.Theprojectwilloperationallybreak‐eveninyear7andcreateastablecashflows(beforefinancing)exceedingUSD1mafteryear10.TheInternalRateofReturn(IRR)basedoncashflowsbeforefinancingisnegativefora10yearhorizon,about10%over15yearsand15%over20years.Thisdemonstratestheverylongtermcharacteroftheinvestment.
ThesefinancialprojectionsassumeaconcessionalfinancingcomponentbytheIADB(MIFgrantandFIPloan)asshowninthetablebelow:
SourceofFunding
(bytypeofinstrument,equity,debt,guarantee,grants,creditlines,etc.)
Amount(USDmillionequivalent)
Percentage(%)
Projectdeveloper USD2m 35
MIFgrant(inUSD) USD1m 15
FIPloan(inlocalcurrencyviafinancialintermediary)
USD3m 50
Localbanks 0 0
Otherinvestors 0 0
Bilaterals 0 0
Others 0 0
TOTAL USD6m 100
AsdescribedinchapterII,theprojectrequiresconcessionalfinanceforseveralreasons: Establishingthispilotvaluechainintheprojectregionrequiresefforts,specificallyfortraining
andsupportoflocalfarmersandharvestworkerstobecomefamiliarizedwiththeactivitiesaroundMacauba.Thiswillnotbeneededasextensivelyforotherprojectsoncethepilotisestablished.Thisupfrontinvestmenttoestablishthevaluechainwouldnotbefinanceableoncommercialterms.
MacaubaisaplantnotyetcultivatedinBrazilandisthusalsonewtothefinancingcommunity.Thisentailsthatcommercialfinancing,specificallybankloans,arenotyetavailableforMacauba
DuetolongleadtimesuntilthefirstharvestofMacauba,financingneedstobelongtermoriented(>15yearshorizon).
Asthisisthefirstcommercialstageproject,financiershavetobearspecific“piloting”or“firstmover”risks.Thistypicallyimpliesthatcommercialbankloansarenotavailable.
![Page 15: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/15.jpg)
15
VIII. ExpectedResultsandIndicatorsResults IndicatorsGeneralSuccessfulflagshipproject:substantialincreaseof#ofMacaubapalmtreesplantedinagro‐forestrysystems
#ofplantsundermanagement#ofhectaresundermanagement
ConceptofplantingMacaubainagro‐forestrysystemsistakenupbysignificantnumberofsmallholderfarmers
#ofsmallholderfarmersplantingMacauba
EconomicSuccessfuldemonstrationofeconomicpotential:projectisfinanciallyprofitable
EATandIRR
Successfulflagshipproject:expansionofmarketforMacaubabasedproducts
Salesfiguresaswellastypesofdifferentmarketsandproducts
Reductionofregionalunemployment Numberofjobscreated(bothdirectandindirect)
Environmental
Climatechangemitigation:CO2sequestration(seeIII,“ConsistencywithInvestmentCriteria”)
TonsofCO2 sequesteredthroughplantingMacaubatrees
Climatechangemitigation:partialsubstitutionoffossilfuelsthroughsustainablyproducedMacaubaoilbasedbiofuels
Tonsofvegetableoilproduced(whichcouldbeturnedintoxtonsofbiofuel)
SocialSignificantincreaseof(small‐holder)farmers’incomes
Averagefarmer’sincome
Diversificationof(small‐holder)farmers’incomes
Compositionofaveragefarmer’sincome
Significantincreaseofland‐workers’incomes
Averagelandworker’sincome
Creationofnewjobopportunitiesforland‐workers(especiallyoutsidethecoffeeharvestingseason)
Averagelandworker’sincomeinMacaubaharvestingseason(incomparisontotheactivitiestraditionallycarriedoutduringthispartoftheyear)
![Page 16: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/16.jpg)
16
IX. ImplementationFeasibilityandArrangements
Asdescribedabove,theprojectbenefitsfromalow‐techapproach.Togetherwiththebusinessmodelstructure,thatspecificallyincorporatessmallholders’concernsandrisksensitivity,theprojectshowsahighimplementationfeasibility.
TheMacaubaTrainingCenterisreadytostartinthenextMacaubaharvestingseason.i.e.byOctober2014.Theestablishmentofnurseriesfortheagroforestrysystemcanbestartedinparallel.Thus,plantationcanstartatthebeginningofthewetseasoninOctober2015.Accordingtotheplan,the2,000hawillbeestablishedoveraperiodof4years:
2015:250ha 2016:400ha 2017:600ha 2018:750ha
ThefirstcollectionofMacaubafruitsfromtheplantedtreesisexpectedfrom2019onwards.
ExpectedFIPSub‐CommitteeapprovalMarch2014 ExpectedMDBApprovaldate:April2014
X. PotentialRisksandMitigationMeasures
Risk MitigationMeasureMarketsideMarketforvegetableoilandrelatedproductsfairlyvolatileUnprovenandnotverywellknownproduct
ModelassumesveryconservativefiguresforproductpricesFeasibilitystudyhasshownthatofftakersexistandarewillingtopurchaseproducedvolumes,additionallyMacaubaoilisverysimilartootherwell‐establishedvegetableoils
Reputational:“palmoil”undercriticism MacaubaisdifferentfromtheAfricanoilpalm.Itrepresentsasustainablealternativeandthusprovidesaneffectivemeanstoreducepalmoildrivendeforestation.Thisargumentishighlycommunicable.
Stakeholder‐relatedSmallholderfarmerstraditionallyseeMacaubaasaburden,sincetherewasnoincomegeneratingactivityassociatedwithitsofar
Financialbenefitstosmallholdershavebeendemonstratedinthefeasibilitystudy(with>300tharvestedintheregion)thewordabouttheadditionalincomeopportunitiesfromMacaubaisspreading;furthermore,additionaltrustduetocollaborationwithlocalcooperative
BiologicMacaubaplanthasnotbeenoptimizedyet,soyieldsmayvary
OngoingresearchatBrazilianuniversitiesandinstitutestoimproveplantefficiency;estimates
![Page 17: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/17.jpg)
17
XI. Contact
Inter‐AmericanDevelopmentBankGloriaViscontiLeadClimateSpecialistgloriav@iadb.orgFOMINGregoryWatsonClimateSeniorSpecialistgregoryw@iadb.org
INOCASGmbHThiloZeltMunstermannskamp1D‐21335LuneburgGermanyPhone:+491719548788Fax:+4930484986425Web: www.inocas.comEmail:[email protected]
inbusinessmodelareconservativeandusevalues(suchaskgoffruitsperpalmtree)gainedfromanalyzingwildMacaubaintheprojectregion
SurroundingBrachiariagrasscouldslowdowngrowthofMacaubapalmtreesandaccordinglypushbackfirstrevenuesfromsellingto>4yearsafterplanting
Ongoingresearchtooptimizeplantingprocess
ManufacturingCurrentoilmillnotlatesttechnology;mayslowdownscalingprocess
Built‐outinvestmentsinoilmillbudgetedinbusinessplan
FinancialCashflow:significantinvestmentneededintoestablishagro‐forestrysystem,thenpalmtreesneedtogrowfor4yearsbeforefirstincomefromtheagro‐forestrysystem
Revenuefromday0onwardsduetoharvestingwildMacaubaandsellingoilproducedfromitsfruits,usingthealreadyexistingoilmill
Accesstofinance:FirstmoverdifficultiesExchangeraterisks:theBrazilianRealshowssignificantfluctuationsinexchangeratesin2012‐2013
Seekingfundingfromdevelopmentbankswhichhavemorethanjustonebottom‐lineandplayvitalroleinhelpingclosethepioneergap.Achievingdebtfundinginlocalcurrency,Makingofftakepricesdependingonpriceindices
![Page 18: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/18.jpg)
1
ANNEX
CONTENT
ThePartners..............................................................................................................................................................................2
INOCASGmbH,Luneburg,Germany......................................................................................................................2
ParadigmaOleosVegetalesLtda.,PatosdeMinas,Brazil.............................................................................2
![Page 19: I. Project/Program Description - Climate Investment Funds · PDF fileCIF Project ID#: 3. ... oil and palm kernel oil, respectively ... Macauba palm trees. ii. An existing oil mill](https://reader034.vdocument.in/reader034/viewer/2022051720/5a781bb97f8b9aa3618e7cbe/html5/thumbnails/19.jpg)
2
THEPARTNERS
INOCASGMBH,LUNEBURG,GERMANY
FoundedinFebruary2011,INOCASisaspin‐offoftheLeuphanaUniversity,Luneburg.AsstatedinthecooperationagreementbetweentheUniversity’s“PlatformofSustainableAviationFuels”andINOCAS,thecompanyisinchargeofimplementingtheconceptsforasustainableplantoilproductiondevelopedbytheEUfundedplatform.
Since2011,INOCAShasalsobeenworkingasprojectdeveloperforaprivateinvestorinParaguayandconductedafeasibility&sustainabilityanalysisonanEastern‐EuropeanbiofuelprojectfortheLufthansaAG.BesidesitsintenseprojectdevelopmentactivitiesfortheMacaubaproject,INOCAScurrentlyactsasaconsultanttotheGermanMinistryofTransport,BuildingandUrbanDevelopment.Thefounders,ThiloZeltandDr.KatharinaAverdunk,havebeenworkingasprojectdevelopersinthefieldofalternativeoilplantsforthepastsevenyears.TheMacaubaProjectwillbesupportedandmanagedbyINOCAS’agronomistswithlongstandingexperienceinagriculturalprojectswithsmallholdersfarmers.
PARADIGMAOLEOSVEGETALESLTDA.,PATOSDEMINAS,BRAZIL
ParadigmaOleosVegetalesisaBraziliancompany,whichhasbeenattheforefrontofworkingwithMacaubafornearlyadecade.Oneofitsfounders,theengineerMarceloMoreiraAraújo,hasdevelopedthefirstBrazilianMacaubaoilmill,whichhasbeenusedforthefeasibilitystudyandwillbeusedinaslightlyimprovedversionbytheMacaubaTrainingCenter.
ParadigmaadvisestheBraziliangovernmentonallmattersrelatedtoMacaubasuchasthe“ProMacaubaLaw”.Thesecondfounder,FranciscoMendonça,hasmorethan30yearsofexperienceasentrepreneurinBrazilianagriculture.AnagronomistbyeducationfromViçosaUniversity,hemanagedthefamily’splantationforseveralyears.SoonafterreturningtohishomestateofMinasGerais,heassumedtheroleofAgriculturalSecretaryofthePrefectureofPatosdeMinas.Boththroughhisownandhisfather’sexperience–whowasawell‐knownfarmeraswellasMemberofParliamentinBrasilia–ChicoisverywellconnectedtoBrazilianpoliticsandagribusiness.