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Tomorrow’s oil today ‘Sustainability through commerciality’

Sustainability Through Commerciality

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Environmentally and socially responsible green asset-backed investment.

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Page 1: Sustainability Through Commerciality

Tomorrow’s oil today

‘Sustainability through commerciality’

Page 2: Sustainability Through Commerciality

Green oil – what is it?

• Produced from plants and trees – not fossils• Similar calorific value to crude oil• Less volatile – safer to transport (spills etc)• Already running power stations and transport worldwide• Mixed to become biofuels-EU Target 10%• Most major airlines successfully trialled bio fuels and IATA looking for quota usage.

Page 3: Sustainability Through Commerciality

Green oil – why so important?

Ecological

• Renewable power source

• Carbon friendly

Political

• Oil resources offer levels of energy independence

• Employment opportunities rather than foreign currency depletion

Economic

• World demand for energy accelerating

• Fossil fuel deposits running out-estimates of between 30-40 years for oil

Page 4: Sustainability Through Commerciality

Current Activities:

Current Activities

• Thailand • Cambodia• Indonesia• Philippines • Senegal• Mali• UK (HQ)

Developing Activities

• USA• Australia• Ghana• Malawi

Page 5: Sustainability Through Commerciality

Green oil investment programmes

• Investment in the production of green oil

• Current project Cambodia- over 1 million hectares

• All land held in trust by UK Trustee company

• Carbon Credited Farming based in London

• Originally formed in 1999 - UK PLC in March 2009

• Operations in countries around the world

• Sustainable, commercially viable alternative to fossil fuels

Page 6: Sustainability Through Commerciality

Jatropha

Palm oil

Sweet sorghum

Pongamia

Plastics polymers

Fuels- auto/jet/blended

Power generation

Petroleum products

Chemical detergents

Applications and usage What we produce

Green oil

Page 7: Sustainability Through Commerciality

2

1Crude oil extraction

atm

osph

ere

atmosphere

Crude oil processing

3Common oil market

applicationsTransport

Power ProductionLubrication

Carbon sequestrated (absorbed)

Stable Emissions

2 Green oilprocessing

Release stored carbon

Crude oil usage

Carbon released from burning

Green oil usage

Carbon released from burning

GrowingEmissions

1 Green oil production

Dire

ct -

no re

finin

g re

quire

d

Refin

ed

Refin

ed

Page 8: Sustainability Through Commerciality

Permaculture- sustainable farming Current commercial farming with little or no;• correlation to domestic or international

market demands• crop rotation or planning• fertiliser ‘know how’

Permaculture based commercial farming with;• Direct correlation to domestic or

international market demands through cooperative

• crop rotation or planning as well as diversity• fertiliser, genetics and best practices

transferred from cooperative

Cooperative inputs and goal:• global market access which drives planning,

demand and pricing;• genetics and best practices imports• technology inward transfer• economies of scale (buying and selling) • farmers participate in value chain• future proofing agriculture

Jatropha

Food Cash

Sweet sorghum

Palm

PongamiaLive-stock

Lumber

Part of a value chain

Page 9: Sustainability Through Commerciality

Green oil investment – three programmes

1. Green Oil Leases

• This is the original single crop plantation lease investment in jatropha.• 2,000 trees per hectare –minimum 2 hectares- £5,000• 1.5 litres production per tree per year, plus by products• Jatropha can grow on less fertile soil- and can withstand drought• Has lifespan of around 50 years • Assured returns yr 1 5% yr 2 12% and then 50-50 revenue share for

remainder of lease term-projected 20% return per annum• Land held in trust on your behalf and buy back options available• Returns linked to projected energy prices increases.

Page 10: Sustainability Through Commerciality

Green oil investment programme

2. Agroforestry Leases

• Jatropha and other energy crops - oil palm, pongamia, sweet sorghum.• Costs £3,125 per hectare; (minimum two hectares)• Minimum investment is £6,250• Assured Income 5% in year 1 and 12% in year 2• Year 3 onwards (to year 45) returns of around 20% each year• Investment can be sold at any time• Exit strategy - buyback option from 5 years to 10 years

Page 11: Sustainability Through Commerciality

Green oil investment programme

3. Capital Builder Lease

• Based on Agroforestry Lease• All income reinvested for 10 years to acquire further Leases• Maximises opportunity for slower maturing / higher yielding asset crops• Minimum investment £12,000• Assured 29 hectares (including original hectares purchased) by year 10• Year 10 Capital value projection (at cost) of £90,625- 655% ROI• Year 10 ongoing annual yield projection of around £18,125 (20%)

Page 12: Sustainability Through Commerciality

Self Invested Personal Pensions

• Can be placed in a SIPP• Tax relief at highest rate if applicable• Tax free income and growth within SIPP• You need an IFA to advise you on SIPP’s

SIPP Providers

D A Phillips & Co Limited

Page 13: Sustainability Through Commerciality

• Plantation portfolio model standard across geographies• Plantation land held in trust• GPS coordinates defined for each corner of each plantation• Plantations divided into defined, labelled and segregated blocks

Plantation portfolio structure

Countries Plantations Blocks Rows

Page 14: Sustainability Through Commerciality

• Agroforestry (Capital Builder and Leases) segregated from Green Oil Leases by planting in separate blocks within the plantations

• Agroforestry Leases will be allocated at the time of issue, regardless of whether single leases or Capital Builder

• Capital Builder reinvestment leases will be allocated at the time the primary capital builder lease matures

Scheme segregation

A1 A2 A3 A4

B1 B2 B3 B4

C1 C2 C3 C4

Example plantation:12 blocks

Green Oil Leases

Agroforestry Leases and Capital Builder

C1 C2 C3 C4

D1 D2 D3 D4

E1 E2 E3 E4

Agroforestry blocks

L1 B1

L2 L3

B2 B3

L3 L4

L5 B3

L6 L7

L8 L9

B1 B2

L10 L11

B3 L12

L13 L15

L14 B1

L16 L17

B2

L12 = Agroforestry lease number 12

B2 = Agroforestry Capital Builder number 2. In this case, there are two additional plots allocated under the reinvestment scheme.

Page 15: Sustainability Through Commerciality

Social-Sustainable development -Empowerment of indigenous people-Poverty alleviation-Employment

Environmental-Virgin forest conservation-Carbon sequestration (absorbed)-Reduced carbon footprint for green oil consumed locally-Increased green oil availability for global markets-Permaculture approach promotes sustainability

Economic-Development of the local economy in the region-Tax revenue resulting from economic activity-Export revenues-Reduced dependence on imported oil

Political-Stability-Model can be deployed across communities

Investment in Reality : Manobo Tribe -Philippines

Testimonial- September 2010- BRM

Page 16: Sustainability Through Commerciality

Green oil investment - highlights

• Investor returns up to 20% a year or more• Environmentally and socially responsible ‘green’ asset-backed

investment• Increasing demand for green oil worldwide as fossil fuel reserves

running out• Income and Capital Builder options available• Cash or pension linked investments• SIPP scheme already in place for transfers or new investments

Page 17: Sustainability Through Commerciality

ANY QUESTIONS