...is currently working with authorities in Sumbawa to create a Corn Stover and other waste biomass "bioenergy" production plant, paying farmers to collect corn stover and other agricultural biomass after harvest, plus local biomass cuttings and forest floor materials, for delivery to our processing plant where we produce BioCoal pellets through a process called "Torrefaction." 

 

These pellets are in high demand in Korea and Japan where the governments require that 15% of fuel for coal powered plants be in the form of biomass pellets.  With the renewable energy community now rejecting cultivated biomass, demanding only waste biomass be the source of feedstock for pellets, TriusGreen will establish itself as the leader throughout Indonesia for this specialized space.

Following our preliminary feasibility study, we develop the plant for construction, and then fund it with $18 milllion (Rp 295 billion), of which 30% shall be an equity investment, likely provided by a firm specializing in plant planning, funding, and construction, while the balance will be in the form of debt.  

The value of this project for Sumbawa will be:

1.  Farmers can earn an additional $10 per metric ton of Corn Stover delivered to the plant, or simply place the material on the side of the road and call the plant, and we'll pick it up for $5 per metric ton.  

 

2.  A projected 4 metric tons of corn stover per Hectare will be required.  We project around 15,000 Ha of land is planted in the Bima area of Sumbawa, while around the same is planted in the 

 

3.  Each year the plant will utilize 70,000 metric tons of waste biomass, being likely 50,000 metric tons of corn stover, which will then be chopped, processed, pelletized, and torrefied, which activities will require a staff of around 20 individuals in Sumbawa.
 

4.  Each plant will generate around IDR 80 billion of taxable income annually, which at 21% tax rate, will generate IDR 15 billion of tax service, resulting in net after tax profit of around IDR 65 billion, being approximately $4.17 million (prior to dividend taxes).  

 

5.  Assuming the equity investor purchases 35% of the $17 million project, being an equity investment of $5.1 million (as the development consultant shall arrange), the IRR would be around 28%.

 

6.  Key to project success will be the feedstock acquisition.  The plant will need around 70,000 metric tons, which indicates needing the corn stover from approximately 18,000 Ma each year (assuming 4 metric tons per Ha).  Currently the plan is to pay around $9 per MT of corn stover, which will be paid $9 per metric ton if delivered to our plant, or be paid $4 per metric ton if we are asked to pick it up.  Above the required quantity of biomass, we will be paying in the form of compost on a ratio of 1 metric tons of compost paid in exchange for 2 metric tons of corn stover.  The objective being to reward those who book and bring their feedstock in early, but to also reward anyone who brings in feedstock with excellent compost that will improve the fertility of their fields.  

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