PONGAMIA
BIODIESEL
BUSINESS
PLAN
About Pongamia
The
legume tree Pongamia pinnata (also called Millettia pinnata) is gaining
importance as a biofuel feedstock tree because of the abundant annual
production of oil-rich seeds, adaptation to a wide range of geoclimatic
conditions and significant resistance to abiotic stress, such as water-deficit,
salinity and acidity of soils. The major defining benefit of using pongamia as
a biofuel feedstock is that it is a legume, enabling biological nitrogen
fixation through symbiosis with soil bacteria, collectively called rhizobia,
which results in root nodulation.
Pongamia as a source of biodiesel
As
Pongamia has high oil content (+36%) and can grow on malnourished soils with
low levels of nitrogen and high levels of salt, it is fast becoming the focus
of a number of biodiesel research programs. Some of the advantages of Pongamia
are:
Ø A higher recovery and quality of oil than other crops, no direct
competition with food crops as it is a non-edible source of fuel,
Ø And no direct competition with existing farmland as it can be
grown on degraded and marginal land.
Ø As a legume it is also able to fix its own nitrogen from the soil,
minimizing the need for added fertilizers. Whilst there are marked advantages
in the use of Pongamia for biodiesel, many considerations are needed in
addressing the world’s complex energy situation.
Pongamia Research & Development
The
Centre for Jatropha Promotion & Biodiesel (CJP) has developed a highly
productive variety of the plant and a set of best practices that will enable
high oil yields.
CJP’s
research team has identified and collected 42 high-yielding pongamia candidates
and evaluated genetic association and variability in seed and growth
characteristics in order to develop improved varieties. The CJP team’s pongamia
work is currently focused on genomic and genetic research. This work will
enable highly productive plantations of the crop to be grown.
We
are also seeing very good field trial data for our new variety with traits like
better uniformity, improved self-branching, early flowering and higher
productivity,. “CJP’s elite pongamia variety ‘Derris indica (D103SAP)’ will
yield at maturity as high as 1,000 [gallons of oil per hectare,] which shall
reach as high as 3,400 gallons in its 15th year with proper nutrition and
irrigation.”
Enhanced cultivation Technology
CJP
researchers have overcome several challenges that will help enable commercial
cultivation on pongamia. “The first challenge was to get the required yield, to
get the plant to grow and understand its productivity over a number of years,
and another problem was its maturity, which is about seven years,” he said,
noting that the CJP’s D103SAP variety has overcome these programs. Maharshi
also points out that the CJP’s proprietary variety flowers three years sooner
than standard varieties. While pongamia traditionally flowers in its seventh
year, D103SAP flower in the fourth.
To
take it to a step forward to ensure better uniformity, improved self-branching,
early flowering and higher productivity, CJP’s further work with pongamia,
focused on further understanding the unique properties of the plant that can be
manipulated to coax it to reach its fullest potential and the extensive
research resulted in mass propagation technology.
CJP's
proprietary technology for the mass production of Pongamia Pinnata plants from
mini-cuttings obtained from the mother plant raised throughDI03SAP ™seed
enables a significant production increase over traditional propagation methods.
1.
-quickly scales
large Pongamia Pinnata projects with consistent, high yielding Pongamia
Pinnata.
2.
-Facilitates
production of the large volumes of low-cost crude Pongamia Pinnata oil required
by major energy, oil and transportation consumers.
3.
-Requires 1/75ththe
land needed to produce cloned plants by micro propagation, with the added
benefits of HYV vigor, strong roots and overall improved plant health.
Food v Fuel & Pongamia
The
surface required to grow sufficient feedstock for today’s biobased fuel
production is less than 0.008% of the global agricultural area of 5 billion
hectares. In a world of fast-growing population with an increasing demand for
food and feed, the use of feedstock for non-food purposes is often debated
controversially. The Study Report “Non Food Biodiesel – Enhanced Economics
& better break-even” published by Biodiesel Business Academy (BBA) has
given the debate a factual turn. In a world of fast-growing population with an
increasing demand for food and feed, the use of feedstock for non-food purposes
is often debated controversially. Dilemma of diverting crops and farmland that
once produced food for family and for feed for animals, is now being produced
for biofuels is not right and just to take the debate away and make it unnecessary
we at CJP are promoting nonfood oil crops on the no use land- land that is not
otherwise suitable for farming of foods.
ILUC discussion and Pongamia
Many
studies have shown there is enough land available to produce more food, more
feed and more biofuels. Though the discussion of indirect land use change
(ILUC) caused by biofuels is not scientifically supported, the Pongamia does
not causes land use change. Contrary to it Pongamia is targeted for marginal
lands which are unproductive, often because of salinity and for water logging.
It is claimed to be highly salt tolerant and as such is used for reforestation
in the dry, saline wasteland. Biodiesel can make a large contribution to the
world’s future energy requirements; this is a resource we cannot ignore. The
challenge is to harness it on an environmentally and economically manner and
without compromising food security.
Economics: Cost & benefit ratio
By
using non-food Pongamia tree for biodiesel production and then utilizing the
waste for further oil extraction. Using current proven sate of art agronomy,
enhanced cultivator and technologies developed by CJP, the biodiesel from
Pongamia would be economically viable.
The Pongamia Biodiesel can be produced less than US$ 49 per barrel, see
detailed economics below
Pongamia
has attracted attention as pressure mounts to find sustainable alternative
fuels to help meet countries' renewable energy targets and cut greenhouse gas
emissions, without interfering with agricultural production. Researchers at CJP has honor to establish this untapped resource
as alternative source for Bio- Diesel industry of future as pongamia is a
strong candidate to contribute significant amounts of biofuel feedstock.
Therefore
the Pongamia Pinnata trees must be regarded as a sure source of 2nd Generation
Biodiesel and the foundation around which a profitable Business plan can be
built for its ability to provide large amount of oil and its pure hardiness and
stress handling ability. The Pongamia Pinnata is tree that has enough
credentials: a higher recovery and
quality of oil than other crops, no direct competition with food crops as it is
a non-edible source of fuel, and no direct competition with existing farmland
as it can be grown on degraded and marginal land. As a legume it is also able
to fix its own nitrogen from the soil, minimizing the need for added
fertilizers.
Based
on our proprietary knowledge and extensive experience gained we have developed
Based on our proprietary knowledge and extensive experience gained we have
developed and enhanced a wide range of Products for creating a “FALESAFE FUEL
FARM”
PONGAMIA BIODIESEL BUSINESS PLAN:
CJP’s Professional Business Plan Service
A
feasibility study and a business plan are essential steps in developing a
successful biodiesel business. However it is not easy to prepare an excellent
business plan.
With
its extensive experiences in the field, enhanced technology, plant science
& professional knowledge, effective
consulting service and business intelligence CJP can clearly understand the business model,
products and services, production, marketing and provides all aspects of
feasibility analysis and business development including assessments of the
following: crop production, crushing, co-product markets, feedstock acquisition
and contracting, technology analysis, risk analysis specific to biodiesel
technology, feedstock, markets, and general project risks, market and financial analysis.
We
make the integration of our experience and professional knowledge with your
information. We provide in depth
analysis of crop cultivation and crop care part of plan for which we have team
of agronomist and plant scientists, and then we have engineers and experts in
biodiesel industries to finish the technology and production part of business
plan. We have professionals in
accounting to complete financial and economics part. CJP can offer the type of
consulting that only numerous years of leadership in the biodiesel market can
provide at an affordable price.
Pongamia Biodiesel
Business Plan
Year 4 to Year 11 Projections
|
10,000 hectare
|
CJP
estimates the key financial figures for a company’s Pongamia Project over 11
years. Th3e projections include
abbreviated income and cash flow statements and a balance sheet.
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Years
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4
|
5
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6
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7
|
8
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9
|
10
|
11
|
Income
Statement
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$9
M
|
$21
M
|
$27 M
|
$36 M
|
$43 M
|
$47 M
|
$52 M
|
$112 M
|
Cost
of goods sold
|
|
$4 M
|
$5 M
|
$6 M
|
$8 M
|
$11 M
|
$13 M
|
$15 M
|
$29 M
|
Net
Operating Income
|
|
$5 M
|
$16 M
|
$21
M
|
$28
M
|
$32
M
|
$34
M
|
$37
M
|
$83
M
|
Operating
expenses
|
|
$1 M
|
$1 M
|
$1 M
|
$1 M
|
$1 M
|
$1 M
|
$1 M
|
$1 M
|
Net Income
|
$4 M
|
$15 M
|
$20
M
|
$27
M
|
$31
M
|
$33
M
|
$36
M
|
$82
M
|
Cash
Flow Statement
|
|
|
|
|
|
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Beginning
balance
|
|
$9 M
|
$24 M
|
$61
M
|
$100
M
|
$155
M
|
$219
M
|
$289
M
|
$367
M
|
Cash
inflow
|
|
$9 M
|
$21 M
|
$27 M
|
$36 M
|
$43 M
|
$47 M
|
$52 M
|
$112 M
|
Cash
outflow
|
|
$6
M
|
$16
M
|
$12 M
|
$19 M
|
$21 M
|
$23 M
|
$26 M
|
$53 M
|
Ending Cash Balance
|
$24
M
|
$61
M
|
$100 M
|
$155 M
|
$219 M
|
$289 M
|
$367 M
|
$532 M
|
Balance
Sheet
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$24
M
|
$61
M
|
$100 M
|
$155 M
|
$219 M
|
$289 M
|
$367 M
|
$532 M
|
Accounts
receivable
|
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Inventory
|
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Prepaid
expenses
|
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Total Current Assets
|
$24
M
|
$61
M
|
$100 M
|
$155 M
|
$219 M
|
$289 M
|
$367 M
|
$532 M
|
Fixed
assets
|
|
$28
|
$33
M
|
$47 M
|
$63
|
$85
|
$108
|
$133
|
$191
|
Total Assets
|
$52
M
|
$94
M
|
$147 M
|
$218 M
|
$304 M
|
$397 M
|
$500 M
|
$723 M
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$4 M
|
$4 M
|
$6 M
|
$8 M
|
$11 M
|
$12 M
|
$15 M
|
$28 M
|
Short-term
notes
|
|
|
|
|
|
|
|
|
|
Accrued
& other liabilities
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
$4 M
|
$4 M
|
$6
M
|
$8
M
|
$11
M
|
$12
M
|
$15 M
|
$28 M
|
Long-term
debt
|
|
$9 M
|
$2 M
|
$2 M
|
$0
|
$0
|
$0
|
$0
|
$0
|
Other
long-term liabilities
|
|
|
|
|
|
|
|
|
Total Long-term Liabilities
|
$9
M
|
$2
M
|
$2 M
|
|
|
|
|
|
Shareholders'
equity
|
$10 M
|
$10 M
|
$10
M
|
$10
M
|
$10
M
|
$10
M
|
$10
M
|
$10
M
|
Total Liabilities and Equity
|
$52
M
|
$94
M
|
$147 M
|
$218 M
|
$304 M
|
$397 M
|
$500 M
|
$723 M
|
CJP
can help clients identify the needs, opportunities and solutions of their
local, regional and national markets. By identifying these needs and providing
management direction, CJP can help in creating a perfect business plan in order
to develop and manage an effective and successful biodiesel facility. The most
critical component of any business plan is the pro forma, an educated view or
projection of what the performance of a company is capable of, given a specific
set of assumptions and conditions. CJP has been involved in identifying these
needs for specific projects for a number of years and can help develop a
realistic and obtainable:
ü Income
Statement
ü Balance
Sheet
ü Capital
Budget
ü Cash
Flow
ü Break-even
Analysis
ü Sensitivity
Analysis
ü Assumptions
Governing the Projections
These
projections will be valuable in determining feasibility of the project,
securing financing, attracting investment and guiding management so that the
company can reach its full potential.
We
provide readymade Pongamia Biodiesel Bbusiness plan for a size of 20 hectare
and 100 hectare. You can order here
For
1000 ha and more we offer to formulate and provide a complete customized comprehensive
Pongamia Pinnata Biodiesel business plan from farming to fuel. For this RFP may
be sent here or mail to Director (Pongamia)