MORINGA

BIODIESEL

BUSINESS PLAN

moringabiodieselbusinessplan 10kAbout Moringa

Moringa oleifera is an essential plant in meeting Global food security and sustain the livelihoods of many millions of people. Climate change provides both opportunities and challenges for attaining the potential contribution of the wonderful tree for sustainable human development. Strategies need to be developed to address key issues in productivity, crop plant-soil/water/energy resources management, and postharvest utilization as food and feed, nutritional and health value addition, and trade and commercialization, so that the role of Moringa in ensuring sustainable development can be enhanced. On realizing the potentiality of moringa as a nutritional security provider and the high value energy crop, much importance is attached to it and this is the right time to gear up for research and development activities to reap its fullest potential.

Moringa as a source of biodiesel 

The oil from the Moringa tree is a more sustainable biodiesel feedstock as it can yield both food and fuel. Among those searching for solutions to feed the hungry, Moringa is well known. Malnourished children flourish with the introduction of the nutritious Moringa leaf crop, which provides protein, vitamins and minerals in their diets. The greatest potential for this species is currently thought to be in its cultivation for the production of biodiesel. Yields of about 20 metric tonnes of pods per hectare per year are achievable for this species. This would equate to between 3000 and 4000 liters of biodiesel per hectare per annum. It is particularly desirable because it is a very low water-use crop and may be cultivated on marginal land commercially

Moringa Research & Development

The ABC announced progress on its work with Moringa Oleifera, a Biodiesel producing shrub that bears valuable oilseeds. According to the ABC, it has developed a micro-cutting mass propagation technique using the plants developed through its MOMax3™ improved seed product line and a set of best practices that will enable high oil yields.

ABC included Moringa Oleifera in its research portfolio on the basis of certain solid credentials: a higher recovery and quality of oil than other crops, no direct competition with food crops as it is a edible source of fuel, and no direct competition with existing farmland as can be grown for both purpose same, in year 2009. ABC scientists are continuously working on enhanced genetics, agronomics and horticulture sciences to drive new varieties, more knowledge around the plant’s nutritional requirements and more science-based processes for the care and custody of the plant and have achieved reliable and scalable results in Moringa energy farming.

ABC team’s Moringa Oleifera work has resulted in evolution of new variety through scientific selection that will enable highly productive plantations of the crop to be grown. In April this year, a new moringa variety named as MARU-MORINGA was introduced. Maru Moringa: First yield starts in 4 to 6 months after plantation & gives commercial yield up to 10 Years. (Per year two seasons with better uniformity, improved self-branching, early flowering and higher productivity. ABC’s elite Moringa Oleifera variety ‘Moringa SEED (MOMax3™)’ will yield at maturity as high as 3-4000 liters of oil per hectare, with proper nutrition and irrigation.

 

Enhanced cultivation Technology

Even a superior genotype variety planted in inadequate soil and improperly cared for, will be unable to reach its potential and will create dissatisfied stakeholders. The ABC’s goal is to triple moringa yields within 10 years, increase the oil content to 48 percent and in combination of other crops the target oil yield is 1500 gallon per ha. Further, to increase the quality of the oils and other products produced—while minimizing inputs including pesticides and fertilizers. The years of continuous research, experiments and in cultivating and breeding ofMoringa Oleifera and other biofuel crops,ABC was able to develop a systematic breeding and cultivar development strategy. Newly bred cultivars are extensively tested in multi-location trials and true to type seeds are being produced with high quality standard

MOMax3™Elite HYV Moringa Oleifera Improved Seeds

Through itsMOMax3™  improved seed product line, ABC provides growers the highest yielding, most uniform and profitable Moringa Oleifera in the world. Improved seeds result in greater yield, uniformity and vigor while significantly reducing Plantation costs for growers.MOMax3™ improved varieties have been tested and developed for a range of climatic and soil conditions.

ABC's proprietary technology for the mass production of Moringa Oleifera plants from mini-cuttings obtained from the mother plant raised throughMOMax3™seed enables a significant production increase over traditional propagation methods.

·         -quickly scales large Moringa Oleifera projects with consistent, high yielding Moringa Oleifera.

·         -Facilitates production of the large volumes of low-cost crude Moringa Oleifera oil required by major energy, oil and transportation consumers.

·         -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 & Moringa

Globally, about 870 million people do not have enough to eat, and more than two billion suffer from micronutrient deficiency, according to United Nations (UN) food agencies. The Moringa tree is increasingly considered as one of the world's most valuable natural resources, as the main constituents of the tree have several nutritive ingredients. Its leaves, pods and flowers are considered good sources of vitamins A, B, B2, B3, B6 and C, folic acid, ascorbic acid, beta-carotene, calcium, iron, and amino acids.  More importantly, its leaves are highly nutritious; being a significant source of beta-carotene, vitamin C, protein, iron and potassium Arial. Moringa oleifera is an essential plant in meeting global food security and sustain the livelihoods of many millions of people.
 

Moringa: Yields

Yield Estimates: Moringa oleifera

Approximate Yield/hectare

Optimal yield

1st year

Seed yield

9 tons

Oil (36% of Yield) ton

3.2 ton

Biodiesel ton

3.2 ton

 

ILUC discussion and Moringa

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 Moringa does not causes land use change. Contrary to it Moringa is targeted for marginal lands which are unproductive. Most importantly it is food crop and same time it yields biodiesel- a perfect answer to the unscientific discussion

 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 Moringa 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 ABC, the biodiesel from Moringa would be economically viable. The Moringa Biodiesel can be produced< US$ 50 per barrel without taking into account by-products revenue. If we credit the revenue from by-products like press cake, glycerin, leaves etc.  Biodiesel can be produced @ no cost, see detailed economics below

Moringa 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 ABC  has honor to establish this untapped resource as alternative source for Bio- Diesel industry of future as Moringa is a strong candidate to contribute significant amounts of biofuel feedstock.

Therefore the Moringa 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 Moringa 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 source of fuel +food, and no direct competition with existing farmland as it can be grown on degraded and marginal land. As a multipurpose tree it meets food requirement adequately

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”

MORINGA BIODIESEL BUSINESS PLAN: ABC’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 BBA  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. BBA can offer the type of consulting that only numerous years of leadership in the biodiesel market can provide at an affordable price.

 

Six  Year Projections

ABC estimates the key financial figures for a company’s Moringa Project over 5 years.  Th3e projections include abbreviated income and cash flow statements and a balance sheet.

Years

1

2

3

4

5

6

Income Statement

Net sales

$17,875,000

$29,135,000

$40,385,000

$40,385,000

$40,385,000

$40,385,000

Cost of goods sold

$1,249,800

$6,906,000

$9,733,700

$9,759,950

$9,956,297

$9,816,453

Net Operating Income

$16,625,200

$22,229,000

$30,651,300

$30,625,050

$30,428,704

$30,568,547

Operating expenses

$750,000

$1,029,167

$1,029,167

$1,129,167

$1,029,167

$1,029,167

Net Income

$15,875,200

$21,199,833

$29,622,133

$29,495,883

$29,399,537

$29,539,380

Cash Flow Statement

Beginning balance

$0

$84,179,671

$127,644,882

$187,714,483

$247,872,459

$324,646,578

Cash inflow

$49,953,050

$29,135,000

$40,385,000

$40,385,000

$40,385,000

$40,385,000

Cash outflow

$34,226,621

$14,330,211

$19,684,601

$19,772,976

$36,389,119

$18,728,267

Ending Cash Balance

$84,179,671

$127,644,882

$187,714,483

$247,872,459

$324,646,578

$383,759,845

Balance Sheet

Cash

$84,179,671

$127,644,882

$187,714,483

$247,872,459

$324,646,578

$383,759,845

Accounts receivable

$0

$0

$0

$0

$0

$0

Inventory

$0

$0

$0

$0

$0

$0

Prepaid expenses

$0

$0

$0

$0

$0

$0

Total Current Assets

$84,179,671

$127,644,882

$187,714,483

$247,872,459

$324,646,578

$383,759,845

Fixed assets

$23,958,000

$22,978,833

$21,999,667

$21,020,500

$20,041,333

$19,062,167

Total Assets

$108,137,671

$150,623,715

$209,714,150

$268,892,959

$344,687,911

$402,822,011

Accounts payable

$1,225,800

$6,882,000

$9,709,700

$9,735,950

$9,932,297

$9,792,453

Short-term notes

Accrued & other liabilities

 

 

 

 

 

Total Current Liabilities

$1,225,800

$6,882,000

$9,709,700

$9,735,950

$9,932,297

$9,792,453

Long-term debt

$17,562,961

$17,562,961

$17,562,961

$17,562,961

$0

$0

Other long-term liabilities

 

 

 

 

 

Total Long-term Liabilities

$17,562,961

$17,562,961

$17,562,961

$17,562,961

 

 

Shareholders' equity

$14,515,089

$14,515,089

$14,515,089

$14,515,089

$14,515,089

$14,515,089

Total Liabilities and Equity

$108,137,671

$150,623,715

$209,714,150

$268,892,959

$344,687,911

$402,822,011

ABC can help clients identify the needs, opportunities and solutions of their local, regional and national markets. By identifying these needs and providing management direction, ABC 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. ABC 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 Moringa 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 Moringa  Biodiesel business plan from farming to fuel. For this RFP may be sent here or mail to Assistant Director (Moringa)

 

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