BIOSAVANNA ENERGY
Biosavanna Energy Systems is a Ghanaian Enterprise dedicated to the production of Bio-fuel from oilseeds including the Jatropha plant.Our aim is Environmental improvement,economic and social welfare of project area. People,Planet & Profit are our goal
Biosavanna Energy shall utilise the abundant vast stretches of land which can be found in areas with adverse agro- climatic conditions in the Savannah regions of Ghana for large scale Jatropha Curcas cultivation and process these oil seeds into bio-diesel. Biosavanna Energy has targeted four main line of jatropha related products and these are:
Crude Oil, Seeds, Biodiesel ;Glycerine ;Biomass for Electricity production and Intercropping of short term crops. Customer groups for our products can be categorised as follows:Trucks ;Buses; Trains;Power stations;Export of seeds and oil to Europe ;Carbon Trading Scheme.The total investment needed is €455,000.
Facts
2006
| Two years ago: | |
| Last year: | |
| This year (forecast): | 81,000 |
| Year 2 (forecast): | 254,000 |
| Year 3 (forecast): | 960,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | -43000 |
| Year 2 (forecast): | 47,000 |
| Year 3 (forecast): | 383,000 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 85 |
| Year 2 (forecast): | 80 |
| Year 3 (forecast): | 95 |
How do you expect this to be financed?
| Own Contribution in cash | 35,000 |
| Loans (debt) | 220,000 |
| Shares in your company that you offer to investors (equity) | |
| Other sources | |
| Total finance needed (US$) | 255,000 |
The Business
Jatropha curcus or the physic nut:The seed of the plant contains between 34%-38% viscous oil. The oil has a wide range of uses including cosmetics, detergents and the production of bio-diesel.Biodiesel is the name of a clean burning alternative fuel, produced from a variety of natural plant oils such as Jatropha and Oil palm seeds. Biodiesel is made through a chemical process called trans-esterification whereby the glycerine is separated from fat or vegetable oil.
Taking advantage of abundant natural- and Human resources, and the application of domestic and foreign advanced biodiesel production technology, we are committed to making oil seeds conversion to cleaner energy a catalyst to sustainable economic development. The production of Bio-energy will boost the rural economy which will bring more enthusiasm in the population, create wealth and control rural–urban migration.
Biosavanna Energy Systems mission is to cultivate the large tracts of cheap barren land and engage the large and inexpensive rural workforce to develop these alternative cleaner energy options.
The development of capabilities to produce adequate jatropha seeds to ensure uninterrupted supply for our bio-diesel processing plant by having a Nucleus Plantation and an Out-grower Plantation scheme.We intend to cultivate within five years, a Nucleus estate of 5000 hectares.
Diesel forms nearly 40% of the energy consumed in the form of hydrocarbon fuels, and its demand is expected to grow systematically with the advent of new diesel systems.
Target Market Segment Strategy:
To become a market leader in the supply of quality and high oil yielding bio-diesel raw material source in the West Coast of Africa, Biosavanna Energy has targeted four main line of jatropha related products and these are:
Jatropha crude Oil
Jatropha seeds
Biomass for Electricity production
Intercropping such as Corn and molinga oliefera.
Carbon Credits under the Kyoto protocol
Customer groups for our products :
Trucks both light and heavy
Buses
Trains
Power stations
Marine boat
Export of seeds and Oil to Europe
Export of Jatropha Oil and biodiesel
Pharmaceutical industry
Carbon Trading Scheme
Labour Requirement for jatropha Plantation in Nucleus estate
Nursury- (Year 1)8; ( Yr 2 )8 ( Yr3) 8
Transplan. & Maintenance- 30 ; 50; 80
Harvesting - 40; 60; 100
Production Cost includes:
Material
Labour
Utilities-Electricity, Air, Water and Steam
Repair and Maintenance
Logistics
Outgrowers logistics are very complex and we shall create a dynamic Supply Chain Management system to handle it.NGO and Women groups would also be trained to help in this project.
We shall have a Centralized processing Plant to process the oil. Mobile Pressing units(Containers) would be used for intermediate site processing.
Every plantation site must have storage tank for oil and shed or silo for seeds.
The factors affecting bio-diesel’s entry into all of segments of the petro-chemical industry include fuel price and availability, legislative mandates and incentives, environmental regulations, and consumer awareness. We shall make assessment of the local demands for diesel fuel, choice of what segment(s) to address, and development of strategic partnerships to produce, transport, and sell the product.
Promotion Strategy and program includes:
Commodity Strategy-
Biodiesel is sold as a pure fuel, but there is no visible product differentiation in comparison to the competitive fossil Diesel at the fuel station; any existing differential advantage (e.g. lubricity or ultra-low-sulphur content) is not utilised in the communication to the customer. In this case Biodiesel is usually sold only over a lower price as a cheap fuel.
Another commodity strategy is to blend Biodiesel in refineries into fossil Diesel up to 5% and sell it anonymous at fuel pumps.
Quality Strategy
Quality seal strategy: Biodiesel is sold as a 100-% pure fuel
and is differentiated as a quality product, which is highlighted by a quality seal at the pump, where informative product information flyers are distributed to the customer as well. This is also intended to protect producer of standardised quality Biodiesel against inferior quality.
Brand Strategy: The fuel (pure or blended between 1 – 20%
with fossil Diesel) is differentiated by a specific trademark (e.g. “G-Power”). Differential advantages will be promoted and linked to a differentiating pricing strategy.
The glycerine produced is exported for further processing and usage in the chemical and pharmaceutical industry.
Biodiesel is marketed at a price level of approx. 10 % lower than fossil diesel.
Bulk Sales and Export Strategy:
Biosavanna main target is the European biofuel market and export will start as soon as practicable. We intend to export at this stage a greater amount of our production capacity.
Competitive Edge:
Our most important competitive edge is entering Ghana agriculture and fuel supply industry with the most advanced technologies and gaining experience and market share before the intrusion of new competitors.
It has been established that the demand for Bio diesel is currently inelastic and will stay as such for the medium term; possibly for a longer term.
There are currently competitors such as Volta River Authority (VRA) and TOR in Ghana, both of which provide energy, but there is commercially small competition in bio fuel production. This is quite advantageous for Biosavanna Energy Systems, providing us with additional breathing space to establish ourselves as the premier biodiesel brand.
The Jatropha plant grows in most areas of Ghana but currently there are no Plantations and manufacturing plants of this environmental friendly fuel. These are some of the accrue benefits of cultivation and processing of this oil seed plant:
• Bio Diesel is the most valuable form of renewable energy that can be used directly in any existing, unmodified diesel engine.
• Bio Diesel is environmental friendly and ideal for heavily polluted cities.
• Bio Diesel produces 80% less carbon dioxide and 100% less sulphur dioxide emissions. It provides a 90% reduction in cancer risks.
• Bio Diesel can be used alone or mixed in any ratio with mineral oil diesel fuel. The preferred ratio if mixture ranges between 5 and 20%
• Bio Diesel extends the live of diesel engines
• Bio Diesel is cheaper then mineral oil diesel
• Bio Diesel is conserving natural resources
The Entrepreneur & Management
Biosavanna management team make up:
Mr Seth Lokko, Accountant(CIMA)/Process Technology Diploma. Seth has over 10 years experience in Process Operations and presently working at the ExxonMobil Refinery at Rotterdam-The Netherlands.
Mr W.O. Danso, Msc Agric-Economics. William is an Agricultural Researcher at Council for Scientific and Industrial Research (CSIR) in Ghana and has over 6 years experience in his field.
Mr Atta Yanney-Koomson, B.sc(Mechanical Eng.) /HND (Mech. Eng-Plant option). Atta is presently a Physics and Mathematics Lecturer at Mankessim Sec. Technical Institute(Ghana) and a Consultant on Production Engineering.
Our team’s skills cover all aspects of creating and managing the biodiesel production project: organizing, financing, auditing, marketing, promoting business, solving technical and organizational problems.
We all pleadge maximum commitment to the company to advance the goals of this bio-energy project.
There are some few gaps in the management team which are currently being addressed through the use of outside consultants and will continue to be until the cash flow allows for the hiring of employees to fill those capacities. The identifiable gaps are out-grower logistics and marketing.
Development
Our Social Aims
Personnel.
Job creation which will improve standard of living.
Employees would be motivated to bring the best out of them through diverse career initiatives.
We shall institute training programme for all levels of skills in the company to improve upon the quality of service.
School leavers programme would be made to help graduates to adapt to a dedicated and hardworking mindset to help facilitate socio-economic development.
The Community
Women developmental projects will be instituted at the local level.Nurseries would be operated by womens groups.
The project will allocate about 5 % of its gross revenue towards development projects in deprived communities in the catchments area. Health and educational facilities will be improved. The brilliant but needy children in the communities will be sponsored to obtained education to the tertiary levels.
Social Return On Investment
Job creation at local and national level
Cost saving for government in the following areas: health, food assistance, education and prevention of rural urban migration.
Protection of the environment
Economic impacts:
Additional source of income for rural and small holder farmers and entrepreneurs
Foreign currency gains
mprovement of the balance of payment



