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Stu

Green Energy and Big Business Plans Part 2

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Stu
, 07-06-2012 at 01:28 PM (18492 Views)
Ok so a commentator (Hubris) asked for a bit more information on the project. Said commentator seems to know an incredible amount on the subject matter which pleases me.

Project: Power Generations (Carbon Neutral) - 400 kW to 200 MW

The project would be a Biomass Gasification plant. I have done a fair amount of research into these and a few pilot programs in Ireland and the like. They have been very successful in carbon neutral power generation.

I am aware that current barriers such as deregulation stand in the way of projects like these but I am hoping that South Africa is on the path to freeing these in order to meet our growing requirement for power.

The Gasification plants require Biomass products which could be farmed these have additional spin-off products which offer additional avenues of revenue and employment.

My basic idea would be to get business plan in place and approach HNWI (High Network Individuals) that I have had the fortune of being networked with.

Build the plant let it run for 5 - 6 years then sell the plant off. In the 5 - 6 years I hope to recover some of the initial investment for the investors via Power sold back into the grid. And obviously having a Carbon Neutral power generation plant to sell off to IPP's after the initial set up.

In terms of BEE - EE this is not a challenge for me at all, as one of the primary providers of the technologies is a school mate of mine who happens to be BEE - EE. And I do have one or two additional contacts that can assist with and 'tendering' processes that have to be followed.

So for me now it's about laying out the plans and looking at what needs to be looked at prior to putting a portfolio together for the possible investors.

From initial assessments to viability studies for the most suitable locations. Maybe I'm getting excited about nothing and could be taking a shot in the dark and could be completely out of my scope. But nothing ventured nothing gained.
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  1. Hubris's Avatar
    I know Biomass projects are being used and are part of the energy mix today. I think there are plans for more cogeneration plants, but I think they only got a small share of the IPP bid windows; in comparison to wind and solar respectively.

    Who knows what NERSA will do, I think its very much tied to the politics of the country and whether or not SA continues to have State intervention in markets or not. I think its likely Eskom will continue to be the primary generator for some time.

    I'm sure at some point there will be more IPP bids, but I know that Eskom has got plans going through 2020 for the energy mix in SA and that has been agreed for implementation. That will satisfy projected demand for at least another ten years.

    Assuming those models are accurate of course, so who knows maybe there could be bids sooner that 2030. I think there's nothing wrong with your business plan, if you can get the finance and manage it well through greenfields to sale.

    Be careful of BBB-EE, we all know its highly politicised and is largely a cause of corruption. I know a few guys who got burnt by their "friend" partners, you'd be surprised how happy people are to cut you out in the name of "development".

    To get this going you need to put together some plans and pitch them to some investors with a staged "go/no-go" approach, giving them comfort that they can invest a small amount to clear feasibility and investor bankability concearns.

    Good luck dude! The private energy interest in SA is growing and I hope more investment will come into infrastructure of all kinds, energy being only one. Our ports are still the most expensive in the world and rail is still a big oppertunity.
  2. BadA$$jack's Avatar
    Where do you find time to think up this stuff or is it part of work ???
  3. Stu's Avatar
    Update on the Energy plans, I've been requested to source some Private Equity for a Energy Project and have been spending most of my free time thinking about the viability and if I should pass on the leads that I have.

    My only concern is that I could potentially destroy a relationship with a Private Equity contact if the deal on the table goes south.

    I am not willing to throw my reputation away and close those type of doors, it's not often that you meet and get to know HMWI (High net worth Individuals). And I don't want to destroy what could lead to future investment in any great business ideas that may present themselves down the line.

    Over and above that I am struggling to find out a strategy on how I can manage the relationships between the Equity and the Company/Agents that require the funding.

    I want to protect my sources and connects and if I am forwarded onto Big Oil and Energy contacts I want to protect the relationships I develop through these interactions.

    The problem is not getting clouded by the number which are to put it lightly very tempting and could potentially sway my decisions but I've tried my utmost to keep a clear head when approaching this,

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