rda’s north queensland projects presentation · juice extraction & power ... • harvesting...

RDA’s North Queensland Projects Presentation

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September 2019

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The RDA Development team was specifically founded to developdecarbonising Projects that tackle the high carbon intensive industriesof TRANSPORT & POWER GENERATION

The Team’s Expertise:• Detailed Engineering• Project Management• Environmental Engineering • Power Generation • Farmers & Landowners with extensive Agronomy knowledge &

experience.• Legal, Commercial, Financial & Marketing Specialists

Proposed Business:• Ethanol - Pentland Bioenergy Project • Biomass Granules – A substitute for Coal

Renewable Developments Australia (RDA)

Fully Integrated Farming & Production Facilities

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• Incorporates the entire value chain from crop cultivation to delivery of finished product to the TVL Port• Controlled feedstock quality and delivery• Feedstock prices not subject to commodity-based supply prices

Farming

Juice Extraction & Power

Ethanol & Granules Production

Logistics

Integrated Value Chain

Ethanol - Pentland Bioenergy Project - Biomass Granules –Substitute for Coal

The Essential Element for a low-cost model

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• Fully Integrated:- No separate margins on crop, ethanol or power production, transport and storage at

Townsville Port

• Yield: - Year-round harvesting, 8-9 month growing cycle & optimum weather conditions- Total fermentable sugars for Ethanol - 8/9 Months Vs Sucrose for Sugar of 12 months - 12,000 Litres of ethanol produced per hectare of sugarcane. (Brazil is 7-8,000)

• Feedstock - fixed costs, no exposure to commodity-based prices

• Land – Very economical land costs

• Power Costs – 2 x 10MW co-gen power plant - utilises bagasse by-product.

• Irrigation Water – Underground water reserves. Infrastructure costs only

• By-products – vinasse and bagasse applied to fields as fertiliser

• Transport Costs - Proximity to distribution routes


Ethanol Project Development Details - Stages 1A & 1B

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• Farming 2.2 million tonnes of cane

• Harvesting & Transportation of sugar cane, average, 40km to process plant

• 2 x 100 Million Litre Lines - ethanol processing facility

• 2 x 10 MW Power & Steam Plants - excess bagasse as renewable fuel

• 5 ML Ethanol site storage facility

• Transport Ethanol to Townsville Port – via triple road train

• 25 ML Storage facility at Townsville Port

• Negotiations on going with 3 marketing contractors for 10 year off takes

• Negotiations with financiers will allow Project Start 1st Quarter 2020

Biomass Granules – Proposed Project Development Details

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• Farming 2.2 Million Tonnes of Sugar Cane & Sweet Sorghum

• Harvesting & Transportation of granules - 40km to processing plant

• 2 x 500K Tonnes p.a processing lines of biomass granules

• 2 x 10 Mw Power & Steam Plants using manufactured granules as Renewable Fuel

• 100K tonne granules site storage facility

• Transport 1 M Tonnes/Annum - granules to Townsville Port for domestic or international markets

• 6 x 100 Tonne Triple Road Trains - 5 Trips/day or 1 x 3,000 tonne Train load per day

• 20K tonne storage stockpile facility at Townsville Port

• No Off-Take agreements negotiated at this Stage – Japanese companies showing interest

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Export Through the Port of Townsville

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Land

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• Processing Facilities: - 2 x 100 ha freehold - 1 site fully approved with MCU- 1 site ready for lodgement for MCU

• Farming:- 278,000 ha leased- 37,000 ha cleared- 60-year leases

• Lease structure: - bonus for signing- Annual base payment on 1000 Ha- Annual lease payment on used land- 10 Land Holders- Land owners employed to grow cane


Biomass Field Growing Trials –The Real Basis for Sustainable Renewable Biomass

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• 4 Ha Pilot Farm - Planted out of Season in Nov 2015

- Harvested Feb 2016 to July 2016

- QLD University of Technology Verification

Sugar cane:

138 tns/ha (9 months)

15% Fermentable sugars

Sweet Sorghum:

270 ton/ha (3 x ratoon)

13% Fermentable sugars


Why Select Pentland for this New Agricultural & Manufacturing Facility

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• Central Western North Queensland - ideal climate conditions to produce biomass

• Sugarcane production cost in NQ ranked lowest cost quartile globally:

• Tropical climate

• High rainfall

• High annual days of full sun exposure

• Favourable soil composition

• Year-round harvesting

• Land cost

• Hydrological reserves

• Not exposed to tropical cyclones

• Geographical location for export markets

• Farmer employed to grow feedstock


Government Support and Project Approvals

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• Government Support:• ARENA – AU$3 Million Development Grant• Biofutures Qld Government – AU$2 million Due Diligence Grant• Clean Energy Finance Corporation - Project Funding - Debt or Equity Support• NAIF AU Federal Government - Project Funding - Debt Support • FIEM Spanish Government - Project Funding - Debt Support – for Spanish Technology


• Project Approvals:• All State, Federal and local Council approvals have been secured• Process facility:

• All environmental values assessed as low risk • All environmental approvals in place for the construction of the plant • A Process Facility Environmental Management Plan in place to manage all environmental risks.

• Land: • All environmental values assessed as low risk • Land listed as Category X (previously cleared). No approvals required. • A Farming Environmental Management Plan in place to manage all environmental risks

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The Pentland Bioenergy Development Progress to Date

Ethanol - Pentland Bioenergy Project

Capital: (all in U$ million)Stage 1a $312Stage 1b $208Total $520

Capital Structure: (Debt ratio: 67%)

Stage 1a Stage 1bDebt $208 $138Equity $104 $70

Proposed Debt financiers:1. Clean Energy Finance Corporation 2. North Australian Infrastructure Fund 3. FIEM (Spanish Government Fund)

• Project Shovel Ready• All Approvals in Place• 3 Equity Providers Carrying Out Due Diligence

• Technical Due Diligence Report Completed by Aurecon• Ethanol Marketing Report Completed by Argus • Preliminary Tax & Accounting Report by PWC• Public & Cost Benefit Analysis by PWC• Preliminary Insurance Report Completed by Marsh• All Required 60-year land Leases Signed• Preliminary Legal Report by Ashurst

• Project Reference Design Completed• JV EPC Contract Framing, Process Plant & Power Plant

under Final Negotiations.• Programme for Stages 1A & 1B - 48 Months• Peak Job Numbers During Construction - 500• Operational & Agricultural Jobs Stages 1a & 1b - 200

Project Construction Start - First Quarter 2020

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Granulation Plant Development Progress to Date

Biomass Granules –Substitute for Coal

• All Required 60-year land Leases Signed

Plant - Proposed Capital Cost • Schedule – 12 months• Production – 500 K tonnes p.a.• Approximate Capital Cost AU$180 M+ AU$50 M for Power Plant = AU$230M• Expected Debt Ratio 67%• Debt Value = AU$154 M• Equity Value = AU$76 M

Demonstration Plant• Will be constructed as part of the Pentland Bioenergy project and will have

Biomass Granulation Samples available for co-firing in major coal and firing in Biomass fired Power Plants by 2nd Quarter 2021.

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Biomass Granules –Substitute for Coal

Renewable Base-Load Power Generation or Firm Power

How do we incentivise developers & financiers to deliver firm power projects.

The Japanese Government is paying a wholesale price for firm biomass generated, renewable, power up to 21 Yen per KWHour = AU$0.28 per KWHour

RDA’s storable, renewable biofuels & biomass granules, could achieve the above outcomes.

Our Partners

• Ethanol - Pentland Bioenergy Project - Biomass Pellets – for coal fired power plants

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Project Funding Engineering & Technical Support

Commercial Support

Off Take Support

rda’s north queensland projects presentation · juice extraction & power ... • harvesting...

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