pt ster n - · oxycup steel waste processing. stern ... • country risk of indonesia • select...

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


End to End solutions

STERN

TechnologyPartners

Climate Change Processes

Investment Opportunities

Project ManagementEPC


STERN is connected to…Oxycup

Steel waste processing


At the beginning…..

Technology

CDM

Construction

Maintenance

Last company with 99% foreign ownership

2005

Green Certification

TradingRaw material


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


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


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


Unpredictable CER prices


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


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


Country Risk of Indonesia


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


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


Essentials are….

• Patient

• Time

• Money

• Endurance

• Good local partners or associates

• Good feasibility studies, Technical and legal


Challenges…

• Competition

• Political and Government issues

• Lobbying strategy

• Operating expanses


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)


Select an industry with a good future in regards of World Market prices and Trends & economy


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

pt ster n - · oxycup steel waste processing. stern ... • country risk of indonesia • select...

Documents