Bio Diesel Fuel (BDF) & Clean Development Mechanism (CDM) Project

Making Bio Diesel Fuel from Jatropha Plantation and related Clean Development Mechanism for Carbon dioxide reduction (apply to U.N.).

We will make the farm of Jatropha. Jatropha can usually live in the farmland in an unsuitable arid zone and the moorland. It has the tolerance to the harmful insect. Oils and fats that become the light oil substitution fuels from the seed can be caught.

Greening of a lot of moorlands (unused) that exist in the Philippines covered with volcanic ash fall deposit and Bio diesel fuels (BDF) are produced with oils and fats contained in the seed and it sells it and Composting using waste (flesh and hull) generated along with business accomplishment. We do various businesses combining it.

It contributes to the environment (greening and waste disposal, etc) of the developing country and the problem (poverty and pollution, etc) of chronic holding it.

It is a project to be able to contribute to the exhaust reduction of heat-trapping gas (GHG) by applying and executing the CDM business.

For more details, please read attached document.

Our strength (Object to negative opinion)

We know that many negative opinion and example of failure in the world about Jatropha business. Everything happens for reasons as you know. A cause exists in what many companies and Investors failed.

The cause of failure
1. The past investigation was neglected in advance.
2. Lack of agricultural knowledge and an expert’s (consultant) absence.
3. World financial crisis of 2008. However, It is not related to Jatropha directly. It affected various business in the world.
4. Jatropha has 2,000 or more kinds. Since almost all Jatropha is poisonous, there is no damage of a noxious insect. But, some kinds of Jatropha don’t have poison. If use it, damage of a noxious insect is unavoidable.
5. Improvement of a species is performed in recent years, and the seed containing many oil is developed. But, By improvement of a species since the original tolerance of Jatropha becomes weak, growth and productivity worsen.

Fact of Jatropha
1. Miscellaneous small trees originally. Therefore, it is durable and growth is early.
2. It is around 2m or 5m or 8m after growth. Growth is need 6 or 8 – maximum 10 month.
3. The natives use as soap or lamp oil from ancient times. They called it “ TUBA “.
4. A subtropical area is the best for growth.
5. A life will be for about 30 – 50 years.
6. If it is a subtropical are, 2 times harvest is possible per years.
7. Even if original folks and plants a branch, it growth.

Conclusion
1. As for the seed of Jatropha, it is most desirable to use original at the beginning project.
2. It becomes conditions that development of a seed does not change original durability.
3. Although durability is strong, it recognizes that water and manure are required.
4. Cooperation of the person experienced in agricultural technology, a consultant, a university, and a research institution is required.
5. An experiment is required in advance.

Explain point of our project
1. I already have experience about Jatropha plantation 8 years ago in Philippines. I had consulting to Jatropha plantation (100ha in Nueva Ecija) of some Japan groups. Unfortunately, Their project stop in 2008 by World finance crisis. I remade our project plan based on the my experience and track record of my client. My Calculation is not prediction. It is based on the fact.
2. We will ask and contract to various agricultural expert, a university, a research institution, a government organization for plantation of Jatropha. And, opinion of natives is also taken in positively.
3. As you know that Our BDF project is mixture with a CDM project. An organic fertilizer is made from a CDM project. An organic fertilizer mixes the dregs, leaf, etc of Jatropha with kitchen garbage. Fertilizer is the cycle of being used for the Jatropha plantation.
4. CDM project will apply to United Nations (UNFCCC) for Carbon dioxide reduction and then will receive CER (Certified Emission Reduction) credit from United Nations. We will contract with CDM consultant (Global Structured Finance section of MIZUHO Bank). They consulting to our project and apply to each government (Japan and Philippines), United Nations and then management

Customers

BDF section : Sales products of project are Bio Diesel Fuel and seed of Jatropha. As mentioned above, the standard of Bio Diesel Fuel deferent with countries. It is not efficient to make and sell a product according to each standard. Therefore, We think it efficient for us to contract with a major trading companies and to entrust sale of products. They have various customers all over the world. And, sale is also possible through the research institution, consultant, university, and companies which are concerned by the manufacturing process of Bio Diesel Fuel.

CDM section : Products of project are 1. refuse disposal, 2. organic fertilizer, 3. CER credit. 1. Refuse disposal is contract with public offices (Cities, towns and villages). 2. Organic fertilizer is also contract with major trading companies. 3. As for CER credit, CDM consultant makes a sale to the governments, companies, and an exclusive market.

BDF section :
Levelling, Maintenance, Felling of Tree, etc of Plantation / $2,000,000 / Plantation road to 30,000 ha when start up
Bio Diesel Refining factory / $2,500,000 / Special order to Suzuki Densetsu Corp. (Japan)
Bio Diesel Refining apparatus (Machine) / $30,500,000 / 438,000 litter per day / 160,000 t per year
Research and Development cost of Bio Diesel Fuel / $200,000 / Univercity, research institute of Tie-up (Japan)
Other expenses / $400,000 / Initial expenditures
Surplus funds / $5,700,000 / Additional Plantation and Factory acquisition, Circulating fund

CDM section :
Factory of refuse disposal and compost / $1,210,000 / Special order to Suzuki Densetsu Corp. (Japan)
Composting machine / $6,600,000 / Special order to Hokusei industry Corp. (Japan)
Soil bacillus use license for composting / $100,000 / Uchishiro bacillus patent manure bacillus (Japan)
CDM application and registration to United Nation / $50,000 / United Nation executive board and DOE
CDM consultant remuneration / $150,000 / Mizuho Bank (Japan)
Other expenses / $190,000 / Initial expenditures
Surplus fund / $400,000 / Factory extension, Circulating fund

ROI : 1st year 10.18% / 2nd year 34.86% / 3rd year 73.09% / 4th year 124.21% /

We're recruiting stockholder (100% Equity) for establishment of project company. We will register owner name and shareholding to SEC (Securities and Exchange Commission) when establishment project company. Owner receives dividend from profit of company (project).

And, if the owner also wants Director's remuneration, It can be discussed positively. And, If owner wants separate Debt and Equity, It also can be discussed positively.

Usual establishment requires stock possession of Philippine people 60%, But We can establish by stock possession of 100% by investment at more than $200,000. It is incentives for foreign capital.

We have condition. It is that we don't need other consultant, developer, etc. We need silent owner (stockholder). Because, We already have business consultant (project planner). He can management project completely, and He already decided other consultant (CDM), developer, constructor, and related companies (mostly from Japan). Needless to say, If owner (stockholder) bring other consultant, developer, It's not efficient method as like JV. It's possible to assert that it will makes time wasteful certainly.

Of course, We will report everything periodically to owner. But, Owner can confirm the progress of project at any time. It is common sense that right of owner and our duty.