Strategy Plan. for. Bioenergi Tønder

Transcription

1 Strategy Plan for Bioenergi Tønder Nørremarken 1, 6280 Højer, Denmark

2 The business Name of the business: Bioenergi Tønder Commencement date: Established 19th September 2007 Contact information: Address: Nørremarken 1, 6280 Højer, Denmark Tel.: and Fax: Website: Concept The concept is the establishment of sustainable production of bioethanol and GMO-free feedstuff proteins (GMO = Genetically modified organisms) on the borders of Denmark and Germany. Production will begin with tried and tested technology, but Bioenergi Tønder I/S is already well advanced in work on new production technology, where bioenergy and geothermal energy are used as a CO 2 - neutral energy source. The current state of play The society Bio Energipark Tønder established the company Bionergi Tønder I/S in September 2007 with capital of DKK 2.25 million (0,3 Mio. EUR). The object of Bioenergi Tønder I/S is to update and plan the start of production and to prepare the establishment of the actual production company, for which share capital of DKK 311 million (41,5 Mio. EUR) will be required, to be paid in instalments of 25% in March 2009, 25% in August 2009, 25% in February 2010 and 25% in June 2010 for construction of the plant. Partners in Bioenergi Tønder I/S are: Brdr. Ewers A/S, Denmark Grain and feedstuffs industry Syd Energi A/S, Denmark Energy sector B&MC Holding A/S, Denmark Industrial sector Tønder Municipality, Denmark Local authority BET, Süderlügum, Germany Feedstuffs industry and trading BET Forening, Denmark Research and development Board members of Bioenergi Tønder I/S have a wide background in diverse but relevant functions production of and trading in feedstuffs, energy and industrial components, the financial sector, the legal sector and the public sector and further assistance is available from Bioenergi Tønder s large global networks. Within a short time the team is to be expanded and the further organisational structures established, just as soon as the general financial framework falls into place. The market Bioethanol is sold to the oil sector in Denmark/Germany/EU27 for admixture with fossil fuels and to the chemical industry. GMO-free feedstuff protein is sold to the feedstuffs industry in Denmark and Germany/Europe and for agricultural livestock production on the Danish/German borders. Nørremarken 1, 6280 Højer, Denmark 2

3 Raw materials will be obtained from the region on the basis of supply agreements supplemented with purchases from the international raw materials market. The market today, in 3 years and in 13 years A European biofuels market has existed since 2003, and was strengthened by the EU Council decision of 8 and 9 March 2007 for a compulsory minimum admixture. The oil sector must reduce its CO2 emissions from all fossil fuels sold by 1% per Year from 2011 to 2020 and this can only be done by adding biofuels. From 1 January 2010 there will be a Danish domestic market for 216,000 m 2 of bioethanol, while there will already be a market in Germany for 2.8 million m 3 in 2010 by 2020 the market will have risen to 375,000 m 2 in Denmark and 4.8 million m 3 in Germany. Over the period there has been an average annual rise of 28% 1, and it must be expected that the trends in this sector will continue to accelerate. It is very important to be in at the start of this global trend. Apart from the above, the figures will be considerably improved by the implementation of E85 (85% bioethanol and 15% petrol), in progress in the EU, although there are no statistics for this. The GMO-free protein is sold to the feedstuffs industry in Denmark/Germany/EU and for regional agriculture. Bioenergi Tønder I/S will sell all its annual production of bioethanol on the Danish/German/European market and negotiations for this are in hand, while preliminary agreements have been made with the feedstuffs industry for sale of the entire protein production. Strengths and weaknesses of the business s major competitors Tønder Bioenergi I/S was established on 19 September 2007 and has the strength that over time the company s activities can be combined with the production of biodiesel and biogas/electricity, meaning that with modern and efficient technology, production can achieve a high CO 2 reductions and become less dependent on big changes in energy prices. Production meets the EU sustainability criteria with high financial yield. We currently have a large network within the global established market for bioethanol and the protein area. There is currently no production of bioethanol in Denmark apart from the Tønder project there are two small demonstration plants in progress one at Kalundborg and one on Bornholm and there are also plans to establish a bioethanol plant at Grenå. Production capacity in EU27 for plants over 100,000m 3 amounts to approx. 3.4 million m 3 1 Source: Nørremarken 1, 6280 Højer, Denmark 3

4 per year. 2. There are bioethanol projects on the drawing board/projects in EU27 for a production capacity of approx. 3.6 million m 3 bioethanol - corresponding to a European production of approx. 7 million m 3 bioethanol annually - or 34% of the expected European demand in EU 27 in The competitors in the EU are producers of either bioethanol or biodiesel. In Germany only Verbio AG produces both types and we enjoy good cooperation with them while CropEnergies, Danisco and PN Bioethanol Elbewerk GmbH & Co. KG. produce bioethanol. In Spain, Abengoa is active; in France Tereos and Christanol and CropEnergies again; in Belgium CropEnergies has bought into the market while in Sweden Agroetanol and SEKAB are our only competitors on the European market. Marketing An administrative department will be created to handle the purchase and sale of products for the oil sector/chemicals industry and for the feedstuffs sector/agriculture etc. Finance/establishment costs The study approved by the board of Bioenergi Tønder I/S on 22 September 2008 is the basis for the establishment of the operating company with an investment sum of DKK 889 million broken down into investment in plant of DKK 729 million, capital for stocks of DKK 29 million and other capital requirements prior to final start-up of DKK 81 million. Financing of the company The financing of Bionergi Tønder I/S will be done by contribution of share capital of 35% - or DKK 311 million (41,5 Mio. EUR) to be paid in instalments of 25% in March 2009, 25% in August 2009, 25% in February 2010 and 25% in June 2010 for construction of plant. Loan finance will amount to 65% - or DKK 578 million (77,1 Mio. EUR) It is anticipated that the loan sum will break down into approx. DKK 376 million from EIB (European Investment Bank) and NIB (Nordiske Investeringsbank) and approx. DKK 202 million (26,9 Mio. EUR) from a national bank/bank consortium there is contact with EIB/NIB and banking institutions. Cashflow analysis/key Words The financial calculations make use of a WACC (Weighted average cost of capital) model with WACC of 10% laid down as a financial target. The present value will be 0 for the first ten years, after which the terminal value of the present value will rise to DKK 913 million (121,7 Mio. EUR) and the total present value of the total cash flow will be DKK 913 million (121,7 Mio. EUR) and the internal interest 10%. Yield will be 17%. In year EBIT will be DKK 93 million (12,4 Mio. EUR) rising in the first full production year in year 3 (2012) to DKK 133 million (17,7 Mio. EUR). Plant investments will be repaid in the year The financial key figures do not include income from sale of CO 2 (Carbon Dioxide) for upgrading to industrial gases, which is estimated at approx. DKK 10 million/year(1,3 Mio. EUR). 2 Source: ebio updated: Nørremarken 1, 6280 Højer, Denmark 4

5 Major challenges The major challenges for Bioethanol Tønder I/S will be to establish a completely new production operation in Denmark. Tønder, 28 October 2008 Nørremarken 1, 6280 Højer, Denmark 5