2. Project - Newcastle
Total Investment - $502,083,310 in three phases over three years
Year 1, Phase 1
Bamboo Plantation + equipment $ 8,938,427
Transport vehicles $ 562,857
Development fee $ 48,490,706
Subtotal Phase 1 $ 57,991,989
Year 1, Phase 2
Initial carbonising plant (20 ton/h) & steam turbine $ 7,500,000
Design of the Biomass-to-Liquid (BTL) refinery
Subtotal Phases 1 & 2 $ 65,491,989
Year 2 & 3, Phase 3
2nd year: Infrastructure BTL and final carbonising plant $ 225,000,000
3rd year: Finalise construction of all plants $ 211,591,320
Subtotal Phase 3 $
436,591,320
Offset value from 750,000 tons of Met Coke = $259 395 000 over 20
years
3. Background to Bamboo
Over 13 years of research and development
Raw material to be grown in Swaziland & South Africa
– Favourable Land Agreements
– High demand for bamboo by many industries
– Carbon Credits for Bamboo plantations
– Offset credits for Power, BamCoke and fuel
Current South Africa
– Bamboo embryo genesis labs and nurseries
4. Investor Criteria: Core
NewCo Farming in Swaziland:
•Produce bamboo for BioCarbon, BTL & electricity
•4,000 hectare farm & Bamboo Nursery
•Average plantation cost: $1,927 /hectare
•Average income per hectare from year 4 to 10: $5,980
•IRR: 62%+ from Farming Operations
•NPV: $ 107,986,477 @ a 12% cost of Capital.
5. Development Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Nursery 1 2 3 4 5 6 7 8 9 10 11 12
Order Plants
TC delivery @ 50,000 every 2 weeks from
Plant deleveries to Farm from other source
Order Farming equipment delivery
Farming
Finilse agreements + Land Survies
Order fertilise & Delivery
Fencing Land Prep
6. Operational Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Farming year 1 13 14 15 16 17 18 19 20 21 22 23 24
Pitting and Planting
Watering for six mooths after rains if rainfall <600 mm
Weeding till two weeks after rains
Watering after planting
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Farming year 2 25 26 27 28 29 30 31 32 33 34 35 36
Shoot Harvest
Weeding till two weeks after rains
Slashing
Farming year 3 37 38 39 40 41 42 43 44 45 46 48 49
Shoot Harvest
Slashing
Farming year 4
Shoot Harvest
Culm Harvest
7. Operational Steps
Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth Mth
Bio Carbon Plant 1 2 3 4 5 6 7 8 9 10 11 12
Order Carboniser Delivery & Tes ting
Order BTL (Des ign and engineering)
Carbonis ing
BTL Construction 13 14 15 16 17 18 19 20 21 22 23 24
Des ign and engineering then Cons truction
Carbonis ing + Power generation
25 26 27 28 29 31 33 35 37 39 41 43
Cons trcution and tes ting - Handover
Carbonis ing + Power generation
44 45 46 48 49 50 51 52 53 54 55 56
Supply BioCoke, Fuel & Power
8. Investor Criteria: Non-core
Transportation
Bamboo Splitting then Chipping
Community Based Industries
– Food security
– Making of Flooring etc.
– Low Cost Housing
9. Current Status
Lab and Nursery: Facilities ready to start production
Carbonising: Feasibility completed on 500 tons of
carbonized bamboo and 500 tons of black wattle
Market : Agreements from Smelters to purchase
BamCoke
Farms: Initial Agreements with land owners being
finalized
11. Use of Funds
Investment Cost Schedule (US$) % of total Total ($USD)
Investments
Plantation and Farm Infrastructure 1,80% 8 166 667
Equipment and Machinery 0,17% 771 761
Vehicles/Transport 0,12% 562 857
Bam Char BamCoke 13,79% 62 548 786
BTL Plant & Equipment 84% 381 013 333
Office Equipment 0,01% 29 201
Working Capital 0,11% 500 000
Total 100% 453 592 604
Development Cost 48 490 705
Total Investments $ 502 083 310
12. Profit Center Returns:
Farming
(10 years)
Gross Profit Margin
• >250%
NPV $ 78,943,302
12% Cost of Capital
IRR 86 %
Capital Investment Required - $9,501,284
13. Profit Center Returns: BamCoke &
Power
First Profits by year 2
10 year NPV $627,074,620
• 12% Cost of Capital
IRR – 77%
Capital Investment - $78,712,354
14. Profit Center Returns: BTL &
Power
First Profits:
• 4 years from start of project, i.e. when
smelters start to be built
10 year NPV $2,837,752,250
• 12% Cost of Capital
IRR – 77%
Capital Investment - $397,176,902
Development - $16,692,769
15. Offsets
Offset value from 750,000 tons of Met Coke could be as high as
$787,398,857 (over 20 years)
If you use BamCoal in the power station instead of Thermal Coal an
extended project would be able to offset 3,000,000 tons of coal over 10
years to the value of $1,567,606,857
Total investment in project excluding BamCoal over three years
is $502,083,310.
Exclusive of a further 10,000 hectares, to mitigate the coal used
in the power stations.
10,000 hectares farming - $21 789 235
BamCoal Production + Power - $155 621 423
16. Summary
Investor Returns:
IRR 62%
NPV $2 087 905 347
12% Cost of Capital
Job Creation
Major New Industry for Swaziland
Expansion into Africa
Massive potential for carbon offsets from
innovative planning & thinking.
The projected use of funds covers three (3) years of corporate start-up expenses. Initial expenses grow over time.
Nursery IRR projections assume R60 million invested over a three (3) year period, building three (3) nurseries over the same period of time.
First profits directly tie into the timing of the first substantial (4,000 hectare) bamboo harvest.
Thus on the ten (10) year NPV there is no income for the first three (3) to five (5) years. Since the plants should produce for twenty-five (25) years or more, the twenty (20) year projections are reasonable and the twenty (20) year NPV would be R 13,085,288,138 or R 3,904,197,761.
First profits directly tie into the timing of the first substantial (10,000 hectare) bamboo harvest.
Thus on the ten (10) year NPV there is no income for the first three (3) to five (5) years. Since the plants should produce for twenty-five (25) years or more, the twenty (20) year projections are reasonable and the twenty (20) year NPV would be R 13,085,288,138 or R 3,904,197,761.