pt ster n - · oxycup steel waste processing. stern ... • country risk of indonesia • select...
TRANSCRIPT
Project Development IndonesiaPrepared by
Raymond Malcolm Oei
CEO
25th of October 2011
PT STER
Nwww.sternasia.com
STERNwww.sternasia.com
Our coverage
Climate ChangePDD & Carbon
Project Development &
Management & EPC
GovernmentRelationship
Banking & Finance & Investment
Marketing Acquisitions, Investments & Relationship
TechnologiesEnergy efficiency & Carbon footprint
STERNwww.sternasia.com
End to End solutions
STERN
TechnologyPartners
Climate Change Processes
Investment Opportunities
Project ManagementEPC
STERNwww.sternasia.com
At the beginning…..
Technology
CDM
Construction
Maintenance
Last company with 99% foreign ownership
2005
Green Certification
TradingRaw material
STERNwww.sternasia.com
Project Development To Develop world-class commercial viable clean Energy enterprises in the Asian region with a primary focus in Indonesia
Renewable
Energy Business
Steel & waste to energy
Biomass Pellets Biomass to EnergyMunicipal Waste Treatment
Plastic recycling Solid Organic to Biogas
Liquid Organic to Biogas PV Solar power
Joint Venture Company
Viable Technology &
Performance Warranties
Finance & Investment
Solution
Feasibility Study
Legal & Technical
Project Management &
Site engineering & EPC
Portfolio
Development
Secure Raw Material,
Source
CDM registration, PDD
and Carbon off take
Driven to create a
financial viable Project
O & M
Secure off take, Sales
= Financial convertible
Minority / Majority
Shares
IPO
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STERN is approaching
• Agriculture business– CPO
– Rice Husk & Straws Fuel pellets
• Steel industry– Iron making
– Waste to energy
• Household waste
• Forest Sector– Forest Management
– Bio fuel
– Fuel Pellets
• Energy efficiency – Eco Industry
• Mining sector– Pig iron & Nickel pig iron
– Energy supply through Hybrid (solar and PV)
– Centrifugal drying
– Water purification supply with Hybrid
– Green Mining Certification – Eco Mining
STERNwww.sternasia.com
Macro indication for investment opportunity
• Unpredictable CER prices
• Country Risk of Indonesia
• Select an industry with a good future in regards of World Market prices and Trends & economy
STERNwww.sternasia.com
Renewable Project development and CER’s
• The Project should be able to compensate falling CER prices
• High risk if related income is depending on CERs, due to not stable CER prices
• Long registration Process can cause lost of CER revenue
STERNwww.sternasia.com
Sample of incorporating the risk in projects
• Biogas from Pome
• STERN sells the biogas to the Palm Oil Mill with an equity IRR above 20%
• Usd Cent 42/ m3
• Usd 40/ ton
• Fuel replacement of Biomass
• STERN converts the Biomass into Fertilizer and sells it at a profitable margin back to the Mill
• The plantation can register the CDM as they combust biogas to CO2. They just have to proof the additionalities
STERNwww.sternasia.com
Basic issues to success
• Financial Capability
• Good human recourses
• Commercial proven technologies
• In control of process, project and Fiance
• Try to obtain 51% shares to control the fund
• Spread your port folio to different Business areas
• Legal due diligent
• Good law office
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What makes Indonesia unique….
• Culture
– Yes does not mean YES
– People tend not to say their opinion, but to please people
– A wait and see – follow mentality
– Decisions are often made on an emotional basis
• Education
– People do not tend to read to increase their knowledge and information
• Business ethics
– Often there is a personal interest
– Bureaucracy
– Very difficult legal frame work, many grey zones
– Tax issues, Company issues, not transparent information available
STERNwww.sternasia.com
Essentials are….
• Patient
• Time
• Money
• Endurance
• Good local partners or associates
• Good feasibility studies, Technical and legal
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Challenges…
• Competition
• Political and Government issues
• Lobbying strategy
• Operating expanses
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Challenges in securing the financial close
• Secure supply chain
– Steel, Pome, bio pellets, PV solar, Fertilizer
• Secure off take
• Difficult to Satisfy potential partner (Pome sample)
STERNwww.sternasia.com
Select an industry with a good future in regards of World Market prices and Trends & economy
STERNwww.sternasia.com
Future of Renewable
• Upgrade Products in the Mining sector
– Nickel, Iron Ore, Cupper,
– Coal Drying technologies
– Waste products are a potential supply for renewable energy projects
– Fresh Water supply with PV solar Hybrid
• Forest Areas – Forest Management
– Production of Bio pellets
– CSR by Products to be exported
• Focus on Captive power supply