Africa Renewables Ltd. Connecting Africa to the green energy economy
February 2011
Mission & Vision
• Long term sourcing of biomass for European utilities.
• Always meet sustainable international standards
• Competitive advantages: secured supply, social impact, attractive economics and potential for expansion
• Long term sourcing of biomass for European utilities.
• Always meet sustainable international standards
• Competitive advantages: secured supply, social impact, attractive economics and potential for expansion
Established in 1964
Workforce 21,000+
Turnover (2008) € 600 million
Net result € 69 millions
Biomass is sourced from SIFCA, the first agro-industrial group in West Africa
Strategic plan to replicate model across SIFCA’s WAF plantations
85,000 ton/year
120,000 ton/year300,000 ton/year
Social impact of biomass projectsLocal community
• Additional jobs• Support small-scale
charcoal and timber trade
• Primary forest threat is alleviated
Plantation Manager
• Biomass income is an incentive for replanting
• Biomass logistic chain of extraction prepares the ground for replanting .
European end-user
• Reduces compliance costs for EU 202020
• Access to high-quality long-term biomass supply for co-firing or dedicated-biomass generation
Overall EU target
0 10 20 30 40 50
Sweden
Finland
Austria
Portugal
Denmark
Estonia
Romania
France
Spain
Germany
Greece
Italy
Ireland
Poland
Great Britain
Netherlands
Belgium
Czech Rep
Hungary
Share in 2005
Increase to 2020
Individual country targets for renewable energy generation
Total biomass demand for power generation
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Bio
ma
ss d
em
an
d (
mill
ion
od
t)
Belgium Denmark Italy Netherlands Spain United Kingdom Sweden
Potential European wood demand for energy
EU 2020 regulations is driving biomass demand growth
The single largest increases in woody biomass consumption for energy generation are expected to develop from:
• Sweden (+6.5 million odt or 28%)
• Italy (+3.0 million odt or 132%)
• UK (+3.0 million odt or 590%)
Share of electricity produced from renewable energy sources (%)
6
Combined demand for woody biomass of energy utilities in Europe to grow 4x by 2020
2010 13 million odt/yr2015 33 million odt/yr2020 57 million odt/yr
0 2 4 6 8 10 12 14 16
EDF
E-ON
RWE
Vattenfall
Electrabel
DONG
DRAX
Scottish & Southern
MGT
Helius
Prenergy
Anglessey Aluminium
Projected Wood Demand (million odt)
2020 2015 2010
AfriRen pioneers in its Ghana project
• Only two similar projects in Africa:
Buchanan Renewables is a company established with Canadian funds with the objective to develop a woodchip exporting business from Liberia. In June 2010, Vattenfall and Swedfund acquire 30 percent of Buchanan Renewables Fuel. Vattenfall's share is 20 per cent for €20 million, and Swedfund's 10 per cent €10 million.
MagIndustries was established in 1997 to evaluate key mineral licenses acquired in the Republic of Congo. Today, the company has four divisions, one of them, MAGForestry, focuses on eucalyptus plantation near Pointe Noire to supply the pulp and paper industry in Europe.
8
GREL Project – annual export of 150,000 mtons of rubber tree biomass from Ghana
Key Concepts Key Figures
Length of contract 8 years
Size of plantation 13,000 Ha
Felling schedule 585 Ha/yr to be felled and replanted
Port logistics Takoradi, less than 100km from plantation
Biomass volume 150,000 gto/year over 8 years
Biomass specs Woodchips from 2011 to 2012Pellets from 2013 to 2018
Export schedule 7-8 cargoes of 15,000 metric tons every month from August 2011
Certification FSC Controlled Wood Standard and Biomass Inventory (SGS auditor)
Quality Within EU guidelines
GREL Biomass Extraction Chain
Mechanical harvesting using a feller-buncher
Extraction to roadside by grapple skidder
Roadside de-limbing and cross-cutting by chainsaw
Transport of wood chips to storage area
Roadside chipping into waiting vehicles
Transport to dockside and loading
Quality and sustainability standards
Rubber wood biomass meets all EU quality guidelinesParameter Unit Method
EU Standard Specifications EN-B
Actual Results Dry Basis
Actual Results as Received Basis
Moisture mass-% DIN EN 14774-1 ≤ 10 16,7
Ash (550°C) mass-% DIN CEN/TS 14775 sim. To DIN CEN/TS ≤ 3,0* 1,6 1,3
Ash (815°C) mass-% DIN CEN/TS 15104 ≤ 3,0* 1,6 1,3
Nitrogen mass-% DIN CEN/TS 15104 ≤ 1,0* 0,50 0,42Net Calorific Value at Constant Pressure (corr. After ash, S, C, H, N) MJ/Kg DIN CEN/TS 14198 16≤ Q ≤19* 17,9 14,5
Chlorine Total mass-% DIN CEN/TS 15289 ≤ 0,03* < 0,05 < 0,05
Sulphur Total mass-% DIN CEN/TS 15289 ≤ 0,04* 0,036 0,03
Arsenic mg/kg DIN CEN/TS 15297 ≤ 1* < 2 < 2
Lead mg/kg DIN CEN/TS 15297 ≤ 10* < 3 < 3
Cadmium mg/kg DIN CEN/TS 15297 ≤ 0,5* 0,3 < 0,3
Chronium mg/kg DIN CEN/TS 15297 ≤ 10* 2 1
Copper mg/kg DIN CEN/TS 15297 ≤ 10* 7 6
Nickel mg/kg DIN CEN/TS 15297 ≤ 10* 6 5
Mercury mg/kg DIN CEN/TS 15297 ≤ 0,1* < 0,1 < 0,1
Zinc mg/kg DIN CEN/TS 15297 ≤ 100* 24 20
Density kg/m³ TAPPI T 258 OM-02 ≥ 600 798
* = in water free condition
Cost indication as of February 2011
Woodchips (35% moisture)
Woodpellets(8% moisture)
FOB costs (€/mton) 35 83
Freight (€/mton) 34 22
CIF COST ARA (€/mton) 69 105
€/GJ CIF ARA 5.9 6.4
€/MWh CIF ARA 21.4 23.0
Developing a cooperation with a European Biomass end-user
• Supply biomass from Ghana origin on CIF or FOB basis
• Expand sourcing of biomass from Ghana to other WAF countries
• Define sustainability criteria to match end-user requirements
• Explore interest in investing in a pellet mill or AfriRen’s complete value chain
Our partners Our advisors
Contact
J.F Guillon
Managing Director
Tel: +44 (0) 203 402 5246
Mob: +44 (0) 7768 078199
Sonia Medina
Partner and COO
Tel: +44 (0) 203 402 547
Mob: +44 (0) 7590 976247
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