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Business start-up

4

COFFEETHANOL

Convert Coffee Waste in usefull biomass to produce bioethanol and biofertilizers, with social and environmental compromise

The business is to produce cleaner energy(ethanol and fertilizers) from
waste coffee pulp (mucilage). The waste today
pollutes the environment and does not represent income
for the coffee farmers. The potential of a country as Colombia in producing this by-product is high, because there is a major coffee production in place. COFFEETHANOL will contribute to country's development (socially with education and investment in rural procedures)

Facts

Legal status business
Not registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 1,619,330
Year 2 (forecast): 1,706,773
Year 3 (forecast): 1,798,939
Net profit after tax (US$)
Two years ago: 0
Last year: 0
This year (forecast): -60478
Year 2 (forecast): 309,392
Year 3 (forecast): 458,000
Total number of Employees
Two years ago: 0
Last year: 0
This year (forecast): 48
Year 2 (forecast): 55
Year 3 (forecast): 65

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 1,339,257
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 178,346
Total finance needed (US$) 1,517,603

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 537,391
Loans (debt) 0
Share capital that you seek from investors (equity) 980,212
Other sources 0
Total finance needed (US$) 1,517,603

The Business

What is your product/service?

Production of base sugar for ethanol and bio-fertilizers from biomass resulting from the coffee waste. Alternative for Colombia to be self-sufficient in it’s energy production. Is environmentally friendly and socially responsible. It reduces the pollution of the air diminishing greenhouse gases and the acidification of the soil in the coffee production areas. Socially, it teaches farmers about better agricultural practices and give them extra revenue.

What customer need/problem do your products/services satisfy?

The world needs energy due to high oil prices and it's adverse effects on environment. CAFETHANOL brings a solution to the problem, specially because the biomass is clean, available and cheap.

How will you make the product/service?

Collection of coffee will be made by CAFETHANOL from small farms to bigger ones where the processing machines to separate mucilage, peel, pulp and been will be placed. Each part will be used for the by-products. Feedstock will be transported to the ethanol conversion plant where wholesalers will buy the product. Transportation will be by truck. For bio-fertilizers, process will be done on the second farms and sold to coffee farmers at low cost.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We have the support of the Coffee Growers Committee of the Department of Cundinamarca (Colombia). They help us to market the product in media sources where end users will know the benefits to use ethanol from coffee waste. Government has a mandate to use blending gasoline-ethanol of 90-10, so there is an interest to promote it's use nationwide.

To whom are you selling, what is your market?

• Coffee farmers that need to move the equipment of the coffee production
• Consumers that need an alternative energy source different from the fossil fuels (due to high prices and environment pollution).
• Wholesalers companies that need a complementary biomass for the production of big quantities of biomass for ethanol.
• In case of surplus there are interesting markets for the exportation of ethanol.

Describe your competitors?

Ethanol from different biomass as sugar cane. CAFETHANOL has already it market because according to the National Energetic Plan 2006 – 2025 of the Colombian Energy Planning entity: “Actually there is being produced 1 mill litters/day designated to reformulated gasoline that covers 57% of national demand and there is no expectation of new production from the sugar cane in the short term”. We will cover 1% of the resulting ethanol deficit.

What makes your business different/better than your competitors (competitive advantage)?

-Biomass results from coffee waste. Doesn’t compete vs. food industry.
-Colombia has been a coffee producer. Big amount of feedstock ready to use
-Is socially responsible
-Is environmentally friendly.

What makes your business, your product or service innovative?

There is no ethanol production anywhere from coffee waste. This is an integral project that gives an energetic, economic, social and environmental, solution to Colombia which gives excellent return rates to investors.

How will you ensure the growth of your business?

We are a team of four people that have being working on the project for many years will the objective to enlarge the small scale that is in place today to an industrial scale. We are organized to continue giving time, experience, resources, work, etc. to keep working on the project and is a personal commitment for each of the team members to make it grow from each area of expertise.

The Entrepreneur & Management

Describe the entrepreneur & management

-General Manager: Organizes the team to fulfil project requirements. Manages external relations (government, investors and clients)
-Investigation and Technical Director: Investigation keep improving products quality. Put in operation the conversion plant on an industrial basis.
-Financial and Administrative Director: Business value chain and supply. Manages relations with the coffee farmers.
-Operations Director:Process to obtain the biomass.

What specifically makes you and (if relevant) your management team most qualified to build this business?

Each team member has worked for years getting the necessary expertise to contribute for the project development. It is a multidisciplinary team that covers every area needed within the project. It has an established research and development (R&D) area managed by the technical direction in order to continue improving our own standards and results for the sub products. The leadership is well established and the team is organized and structured.

How much time do/will you expect to spend per week in the business?

2 members of the team will work for it full time, to work on the supply value chain, the relation with the community and the processes to get the feedstock. Two others will work part time (40-70%).

Development

How does your business improve the local living standards (social and environmental)?

Employment and incremental revenue for more than 400 families up to the second stage of the project. Coffee farmers will receive education on productive practices in coffee activities which is investment on sustainable development. Environmentally, CAFETHANOL diminishes greenhouse gases due to ethanol use instead of gasoline, and filters the water to be discarded to the environment after the coffee process, which reduces the soil acidification.

4 comments

CAFETANOL - Clean Energy from Coffee waste

The team that leads this project is integrated by 4 people who have the experience on the relevant aspects that guarantee CAFETANOL's success. CAFETANOL is integrated by:
(a) Sofía Sepúlveda (General Manager) who have worked in the commercial office of the Colombian embassy for Central America and Panamá (Costa Rica), the Organization of American States (Washington D.C) , BP Exploration (Bogotá), Philip Morris International and ECOPETROL S.A.(Bogotá). Her role is to organize the team to fulfill project requirements and manage relations with government, biofuels regulation entities, investors and clients.
(b) Jorge Eduardo Porras (Investigation and Technical Director): Has developed biofuels investigation since 2005. He has developed the equipment to convert coffee biomass into ethanol with a centralized data based system. His role is to manage the technical side of the project and continue investigating ways to improve ethanol quality and results, also to design and built the plant on an industrial basis from the pilot plant already in place.
(c) Jairo Sepúlveda B: (Financial and Administrative Director) Accountant and independent consultant in finance for 10 years. Experience on relations with the coffee farmers. His role is to assure business value chain and supply and to manage relations with the coffee farmers. .
(d) Angel de Jesus Arcila (Operations Director) He is the president of the Coffee Committee in Anolaima. Has been working as a coffee producer for 20 years. Recognized leader in Anolaima (where the project starts). His role is to lead the process to obtain the biomass for ethanol and bio-fertilizers.

6 Dec 08, 18:59 Sofía Sepúlveda, 6 Dec 08, 18:59

Project Gaia promotes alcohol for cooking.

Please keep us informed. Please go to our websites at www.projetogaia.org and www.projectgaia.com.

16 Feb 09, 18:53 Harry Stokes, 16 Feb 09, 18:53

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 16:55 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 16:55

I take interest...

I take interest in your business.

ghaliinvestment@gmail.com

23 Nov 10, 11:06 Ghali Marnwan, 23 Nov 10, 11:06