Bio Diesel Fuel & Clean Development Mechanism Project in Philippines

This project makes 2 different projects cooperate, and produces a big contribution (alternative fuel oil and carbon dioxide reduction) and profit.

1. Outline of project

We will make the farm of Jatropha. Jatropha usually lives in the farmland, in arid zones unsuitable for crops, as well as in the moorlands. It has a tolerance to the harmful insect. Oils and fats that can be mixed with light oil and used as substitution fuels can be extracted from the Jatropha seed. Greening of a lot of moorlands (unused) that exist in the Philippines covered with volcanic ash fall deposit and Biodiesel fuels (BDF) are produced with oils and fats contained in the seed and it sells it and Composting using waste (flesh and hull) generated along with business accomplishment. We do various businesses combining it. It contributes to the environment (greening and waste disposal, etc.) of the developing country and the problem (poverty and pollution, etc.) of chronic holding it. It is a project to be able to contribute to the exhaust reduction of heat-trapping gas (GHG) by applying and executing the CDM business.

2. Mission statement

Our project mission is “Technical innovation”, “Job creation” and “Poverty reduction” of the developing country. And, the contribution to the problem (Alternative-fuel-oil supply and Carbon dioxide reduction) of the global standard (BDF & CDM Main project). This Gold mining project is just gift for us.

3. Marketing strategy

BDF section:
The energy field in the world is demanding the alternate product of oil. Since the alternative energy of plants origin chains with a food price or supply, it lacks in sense of stability. In the Philippines, there is a Bio Fuel Law and Jatropha is also contained.

CDM section:
The carbon dioxide reduction problem in the world which began from the Kyoto Protocol will be continued from now on also based on COP (Conference of the Parties). The CER credit which the United Nations publishes is effective as a financial product.

4. Our strength

Since it is a pioneering project, it is possible to obtain cooperation of various partners and organs concerned. Trend will further be accelerated after CDM section is recognized in the United Nations CDM executive board. As a fact, we will make contract of consultant, trading company only with the major companies.

BDF section:
Many companies which are tackling Biofuel project and CDM project are in developing countries (South Asia). However, most companies which are tackling Biofuel produce “Bio Ethanol” from an edible plant. Since it chains with a food market price, it contains price fluctuation and the problem of food supply. Our production is “Bio Diesel”. And, the plant which we use is not edible.

CDM section:
CDM is a project undertaken in response to attestation of the United Nations through the government. Since it is a project for controlling global warming, the concept of a competitor is not applied.

BDF section:
Sales products of project are Bio Diesel Fuel and seed of Jatropha. As mentioned above, the standard of Bio Diesel Fuel deferent with countries. It is not efficient to make and sell a product according to each standard. Therefore, we think it efficient for us to contract with a major trading companies and to entrust sale of products. They have various customers all over the world. And, sale is also possible through the research institution, consultant, university, and companies which are concerned by the manufacturing process of Bio Diesel Fuel.

CDM section:
Products of the project are: refuse disposal, organic fertilizer, CER credit.
1. Refuse disposal is contract with public offices (Cities, towns and villages).
2. Organic fertilizer is also contract with major trading companies.
3. As for CER credit, CDM consultant makes a sale to the governments, companies, and an exclusive market.

Initial Investment Expenses for start up project.

BDF section:
Plantation (leveling, maintenance, felling tree, etc.) - $1,646,000
Bio Diesel refining factory - $2,473,000
Bio Diesel refining machine - $30,522,000
Research and development cost of Bio Diesel - $80,000
Other expenses for start up - $420,000
Surplus funds - $5,800,000

CDM section:
Factory of refuse disposal and compost - $1,218,000
Composting machine - $6.602, 000
Soil Bacillus use license for composting - $81,000
CDM application and registration cost - $24,000
CDM consultant remuneration - $40,000
Other expenses for start up - $194,000
Surplus funds - $400,000

Debt: 10 - 20 years repayment and Interest rate 2 - 5%
Equity: 100% share (stockholder) ok. But, we have some conditions below:

1. We can manage and control the project 100%
2. We must report (progress, finance, management, etc.) to investor periodically

We cannot accept JV. It is not good method for business (project).