JSE Jatropha Sociedade de Energia de Mozambique Limitada owned and managed by Bio Oil Jatropha Aktiengesellschaft Germany Project Overview JSE BIO Energy Project Mozambique 1. EXECUTIVE SUMMARY Never before in history has the World seen more growth and development then now. These ecconomies are build on relatively cheap reliable sources of energy. Until NOW!! For the last few years the world has experienced a steady increase in energy prices that has forced us to start looking for alternatives. Not only has energy, become more expensive (ie.crude Oil prices $ 90 per barrel tendence rising) but our dependency on it to continue with life as we know it to day has also been emphasized. Many reasons are given for this continued increase in energy price.: a) Instability in the oil producing regions; b) Limited production capacity of energy; c) Constant increase in the demand for energy, more then available supply; etc.etc. Adding to the situation, is the negative impact, that our current sources of energy has on the environment resulting in climate changes experienced all over the world. This situation has forced many people and countries all over the world to add more efford in their search for alternative sources of energy. One of these alternative is Bio-Energy, the generation of energy (electricity or Bio-Fuel) from plant material. All plants capture the energy from the sun os it grows and store some of that energy in their fruits/seeds. By harvesting the fruits of the plant and then extracting the energy from it, you have created a sustainable source of energy. The predominant plant in Jatropha curcas, the tree/shrub that will be used in this project as source material for the second Bio Energy generation. Therefore, Management of the BOAG Group of Companies, with the University of Hohenheim, Prof. Dr. Becker have developed a business model that will produce a profitable and sustainable supply of Bio Energy over the next 20 to 30 years using our experience gained over the last 15 years, managing integrated supply chains, for Kerosene and Bio Diesel as well as an attractive amount of by-products (? ) from Jatropha.
Kerosene and Bio Diesel from Jatropha, has already been implemented in Egypt, Kenia, Namibia, Madagascar, Tansania und Zambia. The Bio Energy model has a core production estate of a minimum of 12 000 hectares of Jatropha plantations (owned and managed by the company.) In adition, another 12,000 hectare will be planted in the area as part of a controlled Out-Grower program, involving the local community. Facilities to extract and refine the plant oil from the Jatropha seed will be installed on the core estate, to service the whole area. The valuable by-products, will be used to generate other forms of energy like electricity cooking/heating fuel and last not least Medicine. Ref. University Hohenheim. This Bio-Energy model can stimulate further economic development in the area, that will lead to a better life for all. 2. COMPANY STATEMENTS It is the Group's intention, to bring their expertise to Mozambique and other desirous countries to add value by doing, what they do best. The Management of the Bio Oil Jatropha AG, Germany, Group of Companies has more then 15 years of experience in managing integrated supply chains in the Agricultural sector in countries of Southern Africa and in the Jatropha for Bio Diesel Industrie in particular. JSE, Jatropha Sociedade de Energia de Mozambique, limitada, is a subsidiary corporation owned to 100% by: Bio Oil Jatropha Aktiengesellschaft, Germany, 3. MISSION To be a significant role-player in the agriculture und energy industry in Mozambique by supplying a portion of the local need from renewable energy crops grown locally. To 25% of Mozambique's needs by beeing an active part of the integrated Supply Chain Structures that contribute to long term stability and growth for the company, the company, the country and its people. To constantly measure our achivements by evaluating ourselves for our contribution to the group and our performance and a social, environmental and commercial level. 4. VISION To manage the relationship between the three pillars of success ie. Social Value, Economic Benefit and Environmental Harmony in such way to archieve sustainable success. Balancing the production pressure with environal impact Balancing the social delivery and economic needs with environmental impact Balancing the environmental pressure with local needs and economic drive
5. BENEFITS The JSE Bio -Energy project in Mozambique will have a positive effect on the community,the district and the region as a whole. Some of this benefits are: Reduce the dependence of Mozambique on fuel and energy from external sources; Contribute to the growth of the Agriccultural and Energy industry of Mozambique; Contribute to stimulate general economic growth in the area; Improve the quality of life for the Local Community and geater region Produce international rated quality Kerosene and Bio Diesel, localy and for export. 6. COMPANY OBJECTIVES The company has as its main goal the development of a sustainable, profitable, long-term Bio-Energy business that delivers on al its objectives. These objectives are briefly discussed in the section below. 7. COMMERCIAL OBJECTIVE In order for any business to survive, it has to be economically profitable. The Bio Energy project has the ability to create long term, sustainable growth and profitability, because of the vorseeablen Energy Crisis the world is entering in to. It is up to us to put in place all the mechanisms, resources, infrastructure, people, tools and funding needed to make this project work for the next 30 to 40 years.. The main commercial objectives are: To build a sustainable, profitable Bio-Energy business To establish a 12 500 hectare Oil Jatropha plantation To establish Value Adding by product facility on the estate. To create out-grower programs to stimulate local economy To develop other Bio-Energy and agriculture opportunities on the Estate. 8. SOCIAL OBJECTIVE No can be project can be successful without people. We value people as our biggest asset and will create a healthy environment where our workers can perform at the best of their ability and be happy to be part of something BIGGER than themselves. We have a strong work ethic within and belief that hard work must be rewardet accordingly.
We further belief, to provide people the opportunity to grow (in the job and in them self) so that they can benefit even more. We see our workers as part of the team and depend on them to help us and themselves. Our main social objectives are: To provide sustainable jobs on the estate for up to 2000 people. To provide suitable living conditions. To develop infrastructure on the estate with regards to roads, accessible water, electricity, health and training facilities. To stimulate development in the surrounding area by initiating the out grower program; providing a off take market for local product to be sold to; creating demand for all kinds of goods and services etc.etc. Create opportunity for small businesses to start up in all sectors like building, construction, forestry, food supply, closing, candle and soap making, carpentry etc.etc. 9. ENVIRONMENTAL OBJECTIVE The project can only be sustainable if we work WITH nature and not against it. As the jatropha tree is found naturally in the area (as in most parts of Africa) and is not harmfull to the environment. It fits perfectly in t Jour environmental policy. By harvesting the fruits of the tree and not killing it, we have sustainable source of energy for the next 30 to 40 years that will make a positive impact to our environment. This project is in line with achieving the goals of the Kyoto Protocol and will do its part in leaving behind a cleaner and better earth for our children. It is also well known that Jatropha has been used for medicinal purposes for many years but is anslso toxic and not edible for humans. Our main environmental objectives are: To live in balance with nature. To live of the fruit of the earth To preserve the environment so that our children's children can still live of the land. To develop the potential of the land to increase production. To use the land wisely as custodians there of
10. CORE BUSINESS GOALS This Bio-Energy Project, has as its primary objective the development of a minimum of 12 500 hectares in to Oil Jatropha Curcas Plantations in Nampula area mocambique. The jatropha trees will produce seeds that will be crushed in to oil and oilcake for use in the bio-energy sector. The project consists of four (4) main activities: To establish out growers in the area of the estate for an additional area of 12 000 hectare. The crushing and refining plant on the estate will also buy, crush and refine the seed produced by the surrounding out growers adding value to their business. To produce energy through the establishment of an Profitable bio-mass Plant on the project premises that will convert the harvested cake and other plant materials into portable energy for use in electricity applications of the project and in the entire area. Stimulate related business like soap making factory and compressed fire briquettes using the byproduct (biomass;glycerol etc.) as raw material. 11. OPERATION OVERVIEW The project will take 3-5 years to mature. By then all trees will be in full production and the estate will be fully developed. At this point it will record the following achievments TABLE 1 12. PROJECT LOCATION The project is located in the northern part of Mozambique. The project area is on both sides of the main tarred road and railway line between Port of Nacala and Malawi. This is called the Nacala corridor and is identified by the mocambican government as a development corridor of the future. The Land concession is situated between two small towns, Namialo to the West and Metocheria to the East. There are two old cotton concessions in the area that is unused or sparsely used at present. The rest of the land is not used for any commercial purpose and sparsely populated. The two Towns on the edges of the project are an excellent potential labor source. A proper study of the micro environment (people,climate,soil,infrastructure etc.) is being done while we are busy with the application for the final Land Concession (D.U.A.T.).