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Growing 3000 hectares of Sorghum biomass replacing 105,000 tons of coal and growing 1000 (400,000 cubes) hectares of Paulownia hard wood lumber as there is a timber shortage.
About
Our group of companies have secured multiple large farms across Africa and the islands for the agroforestry industry. For the purpose of explaining the numbers we have chosen to open the financial model on our Mozambique project. Both Mauritius and Reunion are wanting to replace the coal with biomass and our biomass is the best replacement due to it high Calorific Value. We have secured a 5000 hectare farm in Mozambique just outside Maputo for easy access to the port. Mozambique The initial Reforestation of Mozambique is planned on 5000 hectares in Southern Mozambique outside Bilene close to the Maputo harbor. The farm identified is 5000 hectares and has 700 head of cattle so it is already fenced. 1000 hectares will be planted with 800 Paulownia seedlings per hectare with a total 80000 seedlings planted. 3000 hectares will be planted with Sorghum biomass that will give us two crops per year. The remaining 1000 hectares will be used for the 700 head of cattle. There will be an additional cash crop grown between the Paulownia trees along with bee hives for honey production. Location: Mozambique – Southern Africa Project Area: 5000 hectares Seedlings: 800,000 Seedlings planted in close proximity 800 per hectare covering 100 hectares Maturity: 4 to 5 years, depending upon the final end-use Cubes of timber: 400,000 cubes per 200 hectares 0.5 cubes per Tree (Average is 0.75) Market Value: $890 to $1600 per cube with a low estimation of $600 used 3000H of Sorghum 3000 hectares of cattle grazing land will be tilled and planted with our Sorghum hybrid chosen from our tests. Maturity 4 months grow time 1-month dry time and two crops per year targeted Biomass tons. The hybrid tests completed we obtained 24 tons per hectare of dry sorghum. For our financial model we used 21 tons which equals 126,000 tons per year. Market Value High Calorific pelletized biomass is trading from $200 upwards and for our financial model we used $150.00 targeting the replacement of coal for Mauritius Carbon Credits: Carbon credits are a traded commodity and currently obtaining prices of $10 and upwards due to COP 26. For our calculations we are using $6 ton and from our conservative evaluation we will have 329,400 tons to trade with in year one and by year five 1,647,000 of CO2 sequestered per. Using a value of $6 per ton this will give our projects a boost of $1,976,400.00 per year Debt Capital: Total loan excluding interest $18,600,000.00 allowing for unforeseen issues Year 1 Revenue: $18,900,000.00 using the lowest earning possible on the biomass Year 2 Revenue: $19,467,000.00 using a 3% increase Year 3 Revenue: $20,051,010.00 Year 4 Revenue: $20,652,540.00 Year 5 Revenue: $261,272,116.00 due to the first expected harvest of the Paulownia Repayment Plan: Payments will me made after each Sorghum harvest and sale Payment Year 1: Per harvest $1,145,505.00 total per year $2,291,010.00 Payment Year 2: $2,291,010.00 Payment Year 3: $2,291,010.00 Payment Year 4: $2,291,010.00 Payment Year 5: $2,291,010.00 plus $18,900,000.00 to settle debt and to negotiate buy back Profitability: Profit share will be set in place as follows Year 1 overhead: $6,973,677.00 Revenue: $18,900,000.00 Year 1 Profits: $11,926,323.00 this is before tax so an option would be to settle more on the capital amount As you can see that this is a brilliant project both for the environment and for your financial gain.
Key Benefits
We have trialed 16 different Sorghum hybrids and know which will grow in each area we have secured. We have secured the right to the seeds for Africa and the Islands We have secured a 5000 hectare farm close to the Maputo harbor. We have relationships with the owners of the coal fire power plants in Mauritius and Reunion who want to replace coal. Growing two crops per year of fast growing Sorghum for better cash flow. Growing 126,000 tons of biomass replacing 105,000 tons of coal Growing 800,000 Paulownia trees that will produce 400,000 tons of hardwood lumber which helps against deforestation Removing 1,647,000 tons of carbon from the atmosphere helping the world in its fight against global warming.
Applications
Helping a company to offset their carbon emissions. Helping in the fight against global warming. Profitable from year one so our funder will not only be offsetting their carbon emissions to become carbon neutral they will be making a ton of money through the journey. Once the first farm is established we are open to partner in several of the farms we have secured.