Sierra Madre Bio-diesel Project
Biodiesel processing through contract growing of Jatropha in the Central Sierra Madre of the Philippines
The investment model is about the establishment of integrated biodiesel plant with jatropha as the feedstock. Initially, the project will start with 2,000 hectares for jatropha cultivation and the first diesel processing plant is already put up by the end of the third year. An aggregate of 10,000 hectares will be consolidated to serve one processing plant.
Facts
2007
| Two years ago: | |
| Last year: | |
| This year (forecast): | 398,389 |
| Year 2 (forecast): | 876,456 |
| Year 3 (forecast): | 1,848,524 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | -627647 |
| Year 2 (forecast): | -308180 |
| Year 3 (forecast): | -415740 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 67 |
| Year 2 (forecast): | 75 |
| Year 3 (forecast): | 83 |
How do you expect this to be financed?
| Own Contribution in cash | |
| Loans (debt) | 592,743 |
| Shares in your company that you offer to investors (equity) | |
| Other sources | 50,000 |
| Total finance needed (US$) | 642,743 |
The Business
The farmers will be organized into production clusters to be managed by a team of production technicians. Every cluster will be divided into production sub-clusters of 500 hectares. For every cluster, there will be a production supervisor and for every sub-cluster, there will be a production technician.
This team of production technicians will supervise the production and harvesting schedule, meet farmers, arrangement for transporting to the plant, and facilitate in payment.
The jatropha seeds harvested by farmers will be collected from the farm and to be processed in a central processing plant composed of 7 decentralized plants. Every decentralized plant within the central processing facility will be able to process 10,000 metric tons per year. The biodisel will make use of the most modern processing technology that is very cost efficient. The biodiesel then will be sold to gas distributors. Decentralized plant is preferred over a large single plant for a number of reasons and among these is the imemdiately establishment of a plant to attract farmers, present technology on biodiesel processing ensures distinct economical advantages of a decentralized plant, and a more sustained operations in the event of major plant breakdown..
1) Production Schedule
The production schedule will start with the establishment of 4 clusters or 4,000 hectares in the first year. This hectarage planted to jatropha will increase by 20 percent yearly until around 10,000 hectares will be planted by the sixth year of the project. Seed yield of jatropha will start from 0.5 ton per hectare starting the first year as there will be yield within three months by using cutting as planting materials. By the fifth year of the plant, the 7 ton yield per hectare will be attained.
2) Collection System
A collection schedule depending on the production of seeds will be set. This will be followed by the farmer cooperators and the production technicians. The payment will be immediately released to farmer either in cash or through a bank.
3) Biodiesel handling
Fuel tankers will be used to transport the bio-diesel to the buyer. An arrangement will be settled with a fuel distributor.
The business is unique because it will be a pioneering initiative to transform an underutilized crop in the Philippines more productive. It will also transform marginal lands in the Philippines productive. Furthermore, it will employ an integrated approach to production of jatropha and to be further processed into diesel using decentralized plant so that investment cost is not heavy on a single plant.
The Entrepreneur & Management
I have a degree in Agricultural Economics. I further studied for the degree of Master of Science in Social Development Planning in the United Kingdom. I was also trained in the Netherlands in project management and programme administration. I have devoted more than 15 years of my career in the preparation of agricultural development projects in the Philippine government service. After leaving full time employment, I have been engaged in the writing of investment models that I am now negotiating for funding on behalf of clients. One of my areas of interest in line with contributing to address global warming and at the same time to transform idle agricultural lands in the Philippines more productive is to engage in biodiesel production using jatropha that can be grown in marginal lands.
Development
The project is financially viable. Aside from the additional jobs to be generated in the growing of jatropha in marginally productive lands, the source of alternative field in view of the continuously increasing price of petroleum based fuel is a project worthy to be given attention.
Interesting
Your plan kindled my interest. I can help in the organization and training. I think this project will have great impact on the lives of farmers and will generate income for the lowly families.