0 © Copyright New Ecologic Oil 2008 Confidentiel Continental Airlines tests a “second...

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1 © Copyright New Ecologic Oil 2008 Confidentiel Continental Airlines tests a “second generation” biofuel based on algae and Jatropha http://www.lechotouristique.com/continental-airlines-teste-un-biocarburant-seconde-generation.15355 Jatropha, a new biofuel soon to be tested on a Boeing http://www.futura-sciences.com/fr/news/t/developpement-durable-1 Air New Zealand tests the Jatropha-based biofuel ww.businesstravel.fr/en-voyage/compagnies-aeriennes/air-new-zealand-teste-le-biofuel-a-base-de-jatropha-1551.html Now Japan Airlines is testing the Jatropha oil biofuel http://www.aerocontact.com/actualite_aeronautique_spatiale/ac-japan-airlines-teste-a-son-tour-le-biocarburant~07577.html

Transcript of 0 © Copyright New Ecologic Oil 2008 Confidentiel Continental Airlines tests a “second...

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Continental Airlines tests a “second generation” biofuel based on algae and Jatropha

http://www.lechotouristique.com/continental-airlines-teste-un-biocarburant-seconde-generation.15355

Jatropha, a new biofuel soon to be tested on a Boeing

http://www.futura-sciences.com/fr/news/t/developpement-durable-1

Air New Zealand tests the Jatropha-based biofuelhttp://www.businesstravel.fr/en-voyage/compagnies-aeriennes/air-new-zealand-teste-le-biofuel-a-base-de-jatropha-1551.html

Now Japan Airlines is testing the Jatropha oil biofuelhttp://www.aerocontact.com/actualite_aeronautique_spatiale/ac-japan-airlines-teste-a-son-tour-le-biocarburant~07577.html

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A player involved in the production of Jatropha curcas oil: A player involved in the production of Jatropha curcas oil: planting, pulping and marketing on the biodiesel marketplanting, pulping and marketing on the biodiesel market

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NEO SA With capital of €210,000 was set up in November 2007.

The first subsidiary was set up in Madagascar in 2008.

The model will be repeated in other African countries.

The team is all set up and ready to go.

A project which has been thoroughly analysed and researched for over 6 years

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Work completed and future steps

Over 5 years of analysis and research

2007 2008

Analysis of the biofuels and vegetable oils

markets

2009

Analysis of the potential of the

Bongolava region for growing Jatropha

Development of the business plan

First meetings with the Malagasy institutions

First batch of test parcels in Bongolava

Second batch of test parcels in

Bongolava

Environmental and socio-economic impact studies

Estimate for raw materials and

equipment

A MADAGASCAR

EN EUROPE

Recruitment of operational heads

Preparation of the long lease agreement

2005Acknowledgment of, and meetings with,

the farmers and Mayors of the region

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Mahabe (September 2008):

Stands of Jatropha curcasin the natural state, no special care needed.

Ambatomainty (December 2005)

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Tsararano (December 2005):

Discussions with the Mayors and the people

South Ambatomainty (September 2005)

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Discussion and full bilateral cooperation with the head of the region

Tsiroanomandidy (December 2008)

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Location and identification of the land

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Test and observations of the land plenty of information and very encouraging

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Test and observations of the land - plenty of information and very encouraging

December 2008

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Inflorescence on a cutting on the ground after 2 months (October 2008)Green fruit and yellow fruit on a cutting on the ground after 3 months (November 2008)

Plant in the ground for one month (September 2008)

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…for a steady, well-thought-out increase in power.

Signature of lease

1st finance raising for 15,000 ha planting + pulping

Establishment of 7,500 ha

plantation

N N+1 N+2 N+3 N+4

Establishment of 7,500 ha plantation

2nd finance raising for 15,000

additional ha

Establishment of 7,500 ha plantation

1st harvest

Setting up of the pulping unit for

15,000 ha

Establishment of 7,500 ha plantation

Search for contacts in other African countries

Setting up of the pulping unit for

15,000 ha

Duplication of the model in other African

countries

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Size of the plantation (ha)

Number of plants per hectares

1666

49.980.000

Total No. of plants

x

Quantity of seeds per plant

30.000

Total quantity of seeds

(x 1000 T)

100 150 200

Oil content

35%

Quantity of oil produced (x 1000 T)

30.8 46.2 61.62 kg 3kg 4kg

3 scenarios

88%

x

x

Rate of oil extraction

Quantity of oil cakes produced

(x 1000 T)

6.,2 103.8 13.,4

+

Sale on local and international markets Biomethanisation and

composting for domestic use

…at an industrial level…

First NEO Madagascar subsidiary: project for 30,000 ha plantation -

Full production objectives

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NEO France S.A.

NEO

Madagascar

(on stand by)

International commerce

Local markets

Sale of crude oil, seed and cuttings

Sale of crude oil

NEO

Africa

NEO

Asia

Commercial flows

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A project on an industrial scale matching the output of the oil companies

An ambitious project

An ethical and sustainable project

An ecological project

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Sources of possible additional income

A. Carbon market – Clean development mechanisms

Cake

CO2

O2

H2OCO2

Seed

Plantation

Carbon marketCarbon market

Source: Point Carbon

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The NEO project takes its place in the CDM context

1 ha Jatropha

30 T of dry matter 2

54 T CO2-eq saved – 8 T CO2-eq produced

= 46 T reduced emissions

30 t CO2 sequestered

Production

Substitution for fossil energy

Growth

Carbon sequestration

1. Project activity emissions: including full production chain, fertilizer N2O-emissions and C-content of fossil methanol input for biodiesel 2. Potentially higher, but limited by pruning requirements Source: JatroSolutions

Emissions - Reductions in CO2 per ha of plantation over 21 years

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PalmPalm SoyaSoya RapeseedRapeseed SunflowerSunflower JatrophaJatropha AlgaeAlgae

25.0 3.0 3.5 2.5 5 60–240Yield (T/ha)

Oil content (%)

20 20 42 43 33 50

Oil yield (T/ha)5.0 0.4 1 - 1.5 1.1 1.6 30–120

2007 world production (MT) 39.0 37.5 18.9 10.7 <1 0

A yield which is altogether higher than other energy crops

Source: BCG Team Discussion - BCG Analyses

The cultivation of algae is at present experimental and extremely expensive

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The 30,000 ha of plantations will be located on state-owned land, in the central High Plateau regions of Madagascar, around 150 km North West of Antananarivo.

Antananarivo province> Bongolava region > Fenoarivobe district > 5 rural municipalities> around 18.00°-18.30°S and 46.00°- 46.30 °E

East coast:

Tamatave port (RN2 from Antananarivo)

West coast:

Maintirano port (RN under construction)

Mahajanga port (RN4 from Antananarivo)

Plantation zone

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NEO plantation zone in Madagascar

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NEO plantation zone in Madagascar

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NEO plantation zone in Madagascar

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Madagascar example

•The zone has been completely deforested and is very seriously eroded;

•The zone is poor in biodiversity, there are no natural reserves and no threatened or endangered species exist in the plantation zone;

•Little plant cover, regularly destroyed by fire;

•Acid, very infertile soils unsuitable for large-scale food production;

•Low population density: around 15 habitants per square kilometre;

•Agricultural activity limited to the vicinity of the villages and in stream bottoms (subsistence farming), extensive zebu farming;

•Very limited economic activity; virtually non-existent

•No access to education, health or veterinary services;

•Problems with rendering water drinkable and the purification of waste water, high rate of diarrhoea and child mortality;

•Landlocked region

Local socio-economic and environmental conditions

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E and ESREnvironmental and Economic Social Responsibility

of the project

Investors must be prepared to be involved in a responsible procedure complying with general international frameworks and international standards for social responsibility.  They must undertake ex ante impact studies on the environmental, economic, social and food security conditions (production, access to food supplies, etc.) of their projects.

These assessments, certified by an independent organisation, will in particular demonstrate concern for the project host nation: this interest lies in the spin-offs from a value-added production procedure involving the rural sector and/or an improvement in food security, either directly, through increased production, or indirectly by boosting employment and the income of the local populations.  For a procedure to be seen as “responsible”, an investor must undertake a three-way dialogue, as transparent as possible, with the national authorities, the territory-based groups and the local population.

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 The signatory finance provider of the Equator Principles must guarantee that the projects it finances within a PED is compliant with the most recent version of the Performance Criteria, the Environment, Health and Safety Directives of the FIC; this must be downstream of a social and environmental assessment.

1- Social and environmental assessment and management of project impacts

2- Respect for basic rights and principles in the workplace

3-Prevention and reduction of polluting emissions

4- Respect for public health and safety

5- Reparation and compensation where land is acquired and populations forcibly removed

6- Preservation of biodiversity and natural resources

7- Protection of the most at-risk native communities

8- Preservation of cultural heritage

The 8 performance criteria of the FICThe Financial Investment Company of the World Bank

Source: CAS summary, see http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvSocStandards