Eco-Carbone’s Malian Jatropha Project:
A profitable biodiesel project in accordance with
sustainable development
NOT AN OFFICIAL UNCTAD
DOCUMENT
UNCTAD/ECOWAS BANK REGIONAL WORKSHOP
Financing biofuels and Jatropha plantation projects with special emphasis on CDM
Financing biofuels and Jatropha plantation projects with
special emphasis
ACCRA
on CDM
- GHANA
– 13/14
, 13November
–14 NOVEMBER
2006 - 2006
1/9
Project’s model
• Private project financed by Malian and European investors
associated in a joint venture (JV)
• Plantations: 95% managed by contracted farmers, 5% by JV
• Efficient and simple industrial process
• Partnership to be concluded with a biomass boiler owner
• Partnership to be concluded with industrial biodiesel buyers
• Possibility to supply also villages with raw biodiesel
Shelled
seeds
Plantations
Seeds
Shelling
Oil
Pressing
Shells
Biodiesel
Esterification
Seedcake
Power
generation
Electricity
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 2 / 9
Location
N
Ségou
Koulikoro: 4 000 ha
X
X
Kita: 5 000 ha
Cinzana: 3 000 ha
Kayes
Mopti
Segou
BAMAKO
100 km
X
Sikasso
Potential plant location
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 3 / 9
Production
• 12,000 hectares of Jatropha plantation
• 11,000 tons/year of biodiesel
• 52,000 MWh/year of electricity from
biomass combustion
• 1,700 tons/year of glycerol
• around 1,000 jobs created
• 1 Mt CO2e avoided over the 6 first years
which helps financing the investment
Project’s progress:
• Jatropha test of six different
provenances have started.
• Industrial plant design is
ready
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 4 / 9
Financial analysis 1/2
10 000
Jatropha Project Profitability
8 000
Net Profit with CERs
Cumulative net profit with CERs
Profit in k€
6 000
4 000
2 000
0
-2 000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
-4 000
-6 000
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Financial analysis 2/2
• Cash needs: €3.7 million to be
financed by:
ð equity €1.2 million
ð loans €2.5 million
• Farmers’ investment could be
financed through micro-credit
• IRR 17% including CER revenue
• JV becomes profitable from 2012
• €2.4 million annual net profit at full
project capacity
• Minimum yield for good profitability =
4 tons of seeds per ha
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 6 / 9
CDM benefits
Annual and cumulative CER generation
1 200 000
Annual temporary CERs
• Carbon credits:
• 6% CERs: fuel switching to biodiesel
and additional biomass energy
• Carbon credits are calculated
from a baseline and must include
project’s emissions
Annual CERs
Cumulative temporary CERs
CERs in tCO2e
• 94% temporary CERs: sequestration in
Jatropha trees
1 000 000
800 000
Cumulative CERs
600 000
400 000
200 000
0
1
2
3
4
5
6
7
8
9
10
11
Years
• Methodological issues:
• for temporary CERs: areas to be
planted must be degraded and
abandoned
• For permanent CERs:
methodologies must be adapted
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 7 / 9
Additional benefits
• Additional revenue for farmers: around
€200/ha/year
• Around 100 jobs created for JV’s activity
• Soil condition improvement
• Energy and payment balance improvement
•Climate change improvement
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 8 / 9
ð Eco-Carbone develops
Jatropha projects in Africa,
Asia and Latin America
www.eco-carbone.com
15 avenue de Ségur
75007 PARIS
Å +33 (0)1 53 59 83 89
info@eco-carbone.com
Financing biofuels and Jatropha plantation projects with
special emphasis on CDM – 13/14 November 2006 - 9 / 9