- Country: South Africa
- Industry: Energy, Natural Resources, Mining
- Stage: Start-up
- Investment size: $10,000,000 / min. $1,000,000
- ROI: 45% in 5 years
- Type of investment: Debt, Equity
Waste-to-energy company looking for funding to develop, own and operate plants, and invest in value chain, industry growth and technologies.
Waste-to-energy project developer in South Africa with multiple projects at various stages of development is looking for investors.
We also intend to invest in the value chain of the industry as well as in potential future market players. So, the funding will be utilized not only to fund own internal waste to energy projects but also to invest in the value chain thereby securing supply of waste and benefiting from off take of energy.
Average IRR's on these plants = 40%+.
Our mission is to be an industry leader by market share within the next two years.
By investing in the value chain we mitigate feedstock risk and by investing in potential competitors we can secure projects and market share early on. By investing we gain in-depth knowledge of financial models of existing businesses as well as new financial models and trade secrets.
Rationale for the deal
The industry is proven internationally but non-existent in Africa. Profit margins are high enough to compete. Pricing and new technologies will enable us to profit from each plant for at least 20 years. Break even is expected within 2-4 years depending on feed stock and energy output.
We have the in-depth technical know-how of refinery plants, supply chain management, entrepreneurial and all other necessary business skills required to engage the industry successfully.
Use of financing
Funding will be used to get existing projects to financial close, invest in current businesses in the value chain like plastic recycling companies, enrgy companies etc., invest in potential competitors and technologies that will open doors to project pipeline, feed-stock and off-take agreements.
We have three divisions: projects, investments and technologies.
Opportunity for the investor
We are looking for an investor that will buy into the bigger scope of investing in the value chain and securing feedstock. There are a lot of funders of these projects at financial close but it is the pre financial close costs per project that needs to be funded. Therefor we need investors with liquid funds and not necessarily funders of these projects of which there are many. This also applies for acquisition of companies in the value chain of feed-stock acquisition.
The potential for the investor is to become part of a multi billion rand business and leader of an industry.
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