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Analyst Briefing
FGV Green Energy Sdn Bhd
ACQUISITION OF M2 BIODIESEL PLANT IN KUANTAN
5 September 2014
Disclaimer
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Program
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Overview of Acquisition of M2 Biodiesel Plant by En Wira Adam VP/CEO FGV Biotechnologies Sdn Bhd
Q&A Session
Program ends.
Introduction COMPANY BRIEF ABOUT TARGET ASSET
Company Brief Acquisition of Mission Biofuels Sdn Bhd ( M2 Biodiesel Plant)
FGV GREEN
ENERGY SDN
BHD (FGVGE)
Formerly
known as
Laras Simfoni
Sdn Bhd
Company Roles &
responsibilities
FGVD Supply feedstock and operate plant
Benefuel LLC
• Supply new solid catalyst
• Retrofitting existing plant with Benefuel technology
M2 CAPITAL Asset Owner & assist retrofitting work
Investment
cost
FGVD in
FGVGE USD22.5
Equity
FGVD 60%
Benefuel LLC 20%
M2 CAPITAL 20%
ASSET OWNER Mission Biofuels Sdn Bhd
LOCATION Adjacent to existing FGVB biodiesel plant
CAPACITY 250,000 tpa (Biodiesel)
TECHNOLOGY
AXENS, France 2nd generation trans-esterification technology (using Solid Catalyst)
FACILITIES
Storage – 22,800mt Near deep water jetty with support pipelines
LAND SIZE 5.9 acres
FEEDSTOCK CPO
PRODUCTS
BIODIESEL HIGH GRADE (250,000 tpa) Glycerine (technical grade : 97.5% 25,000 tpa)
STATUS
Commission partially in 2010, no final acceptance and handover No commercial run
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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
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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.
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M2 CAPITAL FGVD BF LLC
FGV Green Energy
EQUITY
Each JVCO Parties Responsibility
Buying the ENSEL catalyst
Refurbishment work to put back plant on operations
Retrofitting the plant for Benefuel Technology
Buying the target asset “as is where is”
Commissioning the plant
1. Manage & Operate the plant
2. Procure Feed stock
1. Asset Owner M2 Biodiesel Plant
1. Supply Benefuel Ensel Catalyst
2. Benefuel Technology Provider
ROLES & RESPONSIBILITIES
Transaction Structure
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M2 Axens Plant Kuantan
DISTILLATION PLANT PRE-TREATMENT PLANT
TRANS ESTERIFICATION PLANT BOILER HOUSE PLANT
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Benefuel Technology
BENEFUEL TECHNOLOGY
RETROFITTING EXISTING AXENS PLANT WITH
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)
PFAD
or High
Acid
Oils
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
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1 Revenue Growth for FGV Group
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
3 Low Production Cost
2 Increase in Bio-Diesel Production Capacity
4 Secured Off-taker
Payback period of 4 years
IRR > 15%
5 Financial Returns
BASE
EXPECTED REVENUE
M 2 6 %
M 1
FGV FUTURE
CAPACITY
M 2
100,000MT
350,000MT
250,000MT
Key advantages
Thank You
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Contact Us
For further information, please contact:
http://www.feldaglobal.com
Felda Global Ventures Holdings Bhd
Level 6, Balai FELDA
Jalan Gurney 1
54000 Kuala Lumpur MALAYSIA
Telephone :+603 – 2692 8355
Fax :+603 – 2692 8385
Investor Relations contact person:
Ms Zaida Alia Shaari
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