Analyst Briefing FGV Green Energy Sdn Bhd ACQUISITION OF M2 BIODIESEL PLANT IN KUANTAN 5 September 2014
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Program Overview of Acquisition of M2 Biodiesel Plant by En Wira Adam VP/CEO FGV Biotechnologies Sdn Bhd Q&A Session Program ends. 3
Introduction COMPANY BRIEF ABOUT TARGET ASSET Company Brief Acquisition of Mission Biofuels Sdn Bhd ( M2 Biodiesel Plant) Company Roles & responsibilities ASSET OWNER LOCATION CAPACITY Mission Biofuels Sdn Bhd Adjacent to existing FGVB biodiesel plant 250,000 tpa (Biodiesel) FGV GREEN ENERGY SDN BHD (FGVGE) Formerly known as Laras Simfoni Sdn Bhd FGVD Benefuel LLC Supply feedstock and operate plant Supply new solid catalyst Retrofitting existing plant with Benefuel technology TECHNOLOGY FACILITIES LAND SIZE AXENS, France 2 nd generation trans-esterification technology (using Solid Catalyst) Storage 22,800mt Near deep water jetty with support pipelines 5.9 acres Investment cost M2 CAPITAL FGVD in FGVGE Asset Owner & assist retrofitting work USD22.5 FEEDSTOCK PRODUCTS CPO BIODIESEL HIGH GRADE (250,000 tpa) Glycerine (technical grade : 97.5% 25,000 tpa) Equity FGVD 60% Benefuel LLC 20% M2 CAPITAL 20% STATUS Commission partially in 2010, no final acceptance and handover No commercial run
JV Company profile (BENEFUEL LLC). Benefuel LLC. is a biofuel technology and production company that can produce biodiesel at substantially lower costs than conventional methods by using lower cost feedstocks and converting them efficiently into biodiesel and glycerin. Benefuel has developed the patented ENSEL process technology which combines esterification and transesterification into a single step, streamlining the biodiesel conversion process, lowering operating costs and substantially reducing yield loss. The primary differentiator between Benefuel s ENSEL technology and existing biodiesel facilities is that the ENSEL process utilizes a proprietary solid catalyst that combines esterification of free fatty acids and transesterification of triglycerides into a single process step: a long-standing goal of the biodiesel and oleo-chemical industries. Main Shareholders Suncor Energy USA Inc. Flint Hills Resources Renewables LLC ITOCHU Corporation 5
JV Company profile (M2 Capital Sdn Bhd). M2 Capital incorporated in August 2014, it s a 100% subsidiary of MNE (Mission New Energy Limited) Australia. The owner of the M2 biodiesel plant in Kuantan Port. 6
Transaction Structure ROLES & RESPONSIBILITIES 1. Manage & Operate the plant 2. Procure Feed stock 1. Asset Owner M2 Biodiesel Plant 1. Supply Benefuel Ensel Catalyst 2. Benefuel Technology Provider EQUITY FGVD M2 CAPITAL BF LLC Each JVCO Parties Responsibility FGV Green Energy Buying the ENSEL catalyst Buying the target asset as is where is Retrofitting the plant for Benefuel Technology Refurbishment work to put back plant on operations Commissioning the plant 7
M2 Axens Plant Kuantan DISTILLATION PLANT PRE-TREATMENT PLANT TRANS ESTERIFICATION PLANT BOILER HOUSE PLANT 8
Benefuel Technology RETROFITTING EXISTING AXENS PLANT WITH BENEFUEL TECHNOLOGY PFAD or High Acid Oils BENEFUEL Solid Catalyst RETROFITTING AXENS PLANT WITH BENEFUEL TECHNOLOGY TO CATER FOR PFAD FEEDSTOCK OR OTHER HIGH ACID CONTENT VEGETABLE OIL Design Concept Was Integrated With FGVB plant, Share Of Loading Bay, Lab, Weighbridge, Admin Office And Plant Entrance. Pilot plant (In Japan Owned By Daiki & Itochu & Benefuel) 1 month test period result on Pfad Was Good Production Of PFMA met The Specification EN and ASTM. 3 reputable companies (Flint Hill Resources, Benefuel & Itochu ) are now involved in a similar project in Beatrice plant, Nebraska. The advantages of ENSEL process technology(benefuel TECHNOLOGY): Low operating cost A simplified operation eliminate glycerin purification, fuel washing and caustic neutralization Yield guaranteed of 98% vs 95.5% (normal) 97.5% pure high quality technical grade glycerine (without purification) 9
Key advantages 1 Revenue Growth for FGV Group 2 Increase in Bio-Diesel Production Capacity M 2 6 % M 2 350,000MT BASE EXPECTED REVENUE 100,000MT M 1 FGV FUTURE CAPACITY 250,000MT 3 Low Production Cost 4 Secured Off-taker 5 Financial Returns Use PFAD as feedstock PFAD is 30% cheaper than CPO PFAD feedstock without pretreatment cost Overall lower production cost compared to our existing M 1 plant Flint Hill Resources, Godiver & Itochu will off take all bio-diesel produced by M2 plant. Bio-diesel will be marketed predominantly in the US & EU 2013 USA consumed 4.6 Mil ton, expected 2015-7.0 Mil ton. Scaling down using food based (Crop) high price for food, advantages for PFAD Payback period of 4 years IRR > 15% 10
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