Download - Presentation on Biofutures International plc
January 2007
Presentation onBiofutures International plc
Summary of Business Case
• Strong biodiesel demand driven by legislation and environmental concern
• Development of large scale biodiesel plant– With opportunity to expand should demand dictate
• Strategically advantageous location– Low cost feedstock supply– Sales market flexibility
• Use of proven technology– In both construction and operation
• Strong management team
Equity Structure and Finance
Major shareholders• Zurex Corporation 45%• Phillip Carter 11%• Gartmore Investment Mgmt 7%• Modal Capital Partners 5%• Credit Suisse Securities 5%
• £14 million raised via listing on AIM November 2006• Bank finance to be finalised
Zurex: Proposed large scale biodiesel production facility
• Plant at Palm Oil Industrial Cluster at Lahad Datu in Sabah– Malaysian Government developing key palm oil logistic hub with
deep water port
• Biodiesel production licence granted • Malaysian pioneer tax status
Potential Growth Business
• Global biodiesel demand expected to treble by 2010• 200,000 tonne per annum biodiesel plant start-up in Oct 2008
– Further growth opportunity via expansion to 1 million tonnes
• Structural competitive advantage– Palm oil is a low cost pure biodiesel feedstock– Malaysia is world’s largest palm oil producer and is
geographically well-placed for all biodiesel sales markets
Biodiesel
• Derived from natural vegetable oils• Alternative fuel for diesel engines
– Usable pure or mixed in any ratio with fossil diesel
• Reduces greenhouse gases and emissions• Safe fuel to store and handle• Non-toxic and bio-degradable• End products recognised to international standards
The Biodiesel Market is Growing
Number of 100 ktpa plants required to meet 5% blend
• European market– Majority of biodiesel sales– growing via legislative backing &
fiscal support– EU Directive of 5.75% biofuels
by 2010 should push demand from 6m to nearly 14m tonnes pa
– Proposal for 10% target for 2020
• Asian markets developing• US market
– Intends to raise biofuel use to 4% by 2012
• Uses existing distribution infrastructure– Ease of adoption
Source: Lurgi AG
Palm Oil Feedstock Advantage
• Low cost biodiesel feedstock– US$540/tonne is US$190/tonne less than cost of rape
seed oil– Far higher yield per acre than any other current
vegetable oil
• Palm oil biodiesel proven– Meets legislative standards– Blended with mineral diesel e.g. 5% blend for
European market– Palm biodiesel used successfully
in German trains
Lurgi Technology Well Proven
• First biodiesel plant constructed in 1988– SE Asia plant in 1991
• Over 25 plants in operation– More than 60% of global
production expected to be from Lurgi constructed plants by 2007
• 200 ktpa plants in operation in Germany
• Other oleochemical plants in SE Asia
Project Schedule and Costs
• Early concept design and site survey work complete
• Capital cost estimate £28 million
• Working capital estimate prior to start-up £12 million
• First oil anticipated October 2008
Key Business Variables
• Feedstock prices– Long term growth in supply, forward contracts
• Biodiesel market– Macroeconomics of demand, legislative support via fiscal
measures and volume mandates
• Project delivery– Technology choice, project management team
experience– Plant not yet procured
• Currency risk– Off take market is US$, lending in US$
Management Team
• Nicholas Gee* (aged 43) – Executive Chairman– Petroleum Engineer and MBA– Strong oil and gas exploration and production business
management background• BP, Global Marine, Weatherford International
• Julie Pomeroy* (aged 51) - Finance Director– Chartered Accountant– Experienced public company FD
• Carter & Carter Group plc, Weston Medical Group plc
• Wayne Rudd (aged 40) – Projects Manager– Experienced business manager– Strong capital petroleum project management experience
• Statoil, Halliburton, Weatherford
* Main Board director
Management Team (cont.)
• Iain Young (aged 47) – Commercial Manager– Civil engineer and MBA– Experienced project manager in oil and gas sector, including
project commercial risk management– 3 years in biodiesel fuel and technology sector
• Jack Yong (aged 35) – Operations Manager– Chemical Engineer– 9 years biodiesel plant development and production management
experience in Malaysia
• See Keat Tatt (aged 43) – Project Financial Controller– Chartered Accountant– Senior finance roles in US multinational oil services industry
Non-executive Directors
• Phillip Carter– CEO Carter & Carter Group plc– Major shareholder of Biofutures
• Chris Dennison– Founding partner of Bywater strategy consultancy– Consults in all areas of oil, gas and petrochemical industry
• Arthur Lim– Board member of several companies including, ANC Group Pte Ltd and
I-Invest Pte Ltd– Previously held senior roles in financial services sector
• Christopher Price– Chartered Accountant– FD – Epson UK Limited
• Joe Wong– Board member of several companies including eAssetManagment SB
and Fullerton Investments Ltd– Previously held senior roles in financial services sector
January 2007
Presentation onBiofutures International plc