Gloria Mundi Energy Farming Ltd: Surigao Biomass Renewable Integrated Facility
GMEFI owns a 75,000 tons per year biomass pellet factory focused on exports to Japan and Korea, and is planning to relocate from a now defunct saw mill in Davao to an area in Surigao with ample raw material in the form of Forest Stewardship Certified falcata logs. GMEFI will build a 5MW biomass energy unit to supply energy to the pellet factory, and sell the balance to Surseco, the local power distribution cooperative. GMEFI will also arrange with Lionheart Agrotech Limited - an affiliated company - to build a 100,000 coconuts per day processing line which ultimately provides free fuel to the power unit.
What problem are you trying to solve? Who has this problem?
Surigao is on the wider Mindanao grid, but only via 13kVa power lines, so locally produced energy is more suitable. Surigao currently is supplied about 15MW from a number of diesel generators, some of the SPUG/Napocor, some private operators. This is polluting, it is costly, and there is a whole ecosystem of middlemen who supply the diesel - which in many cases do not come from a legal source.
The pellet plant itself needs power, and we can't bring ourselves to use diesel generated power to run a renewable energy company.
The coconut plantations in the neighborhood (8,000 hectares) currently make sun dried copra, and have no good use for the coconut husks which are disposed in rivers, the ocean, beaches etc which again disturbs fishing and tourism.
We negotiate a bilateral supply agreement with the local power cooperative SURSECO, and a raw material supply agreement with the Falcata growers. This will be backed up with a Giant King Grass growership agreement with local farmers; the biomass renewable energy will thus be supplied at a lower price for the proponents. Note that as our fuel is "free" (waste from coconut processing), we can afford to sell the power at a price lower than the official FIT. The coconuts are bought whole from the farmers, so it's unlikely they'll start charging for their waste - but we may negotiate a bilateral waste management deal with our sister company Lionheart to guarantee the coconut waste at a max price.
In broad numbers the marginal cost of a ton of pellets is $85 with an FOB selling price of $110; the marginal cost of producing a kWh is 2 cents (really only handling of the coconut waste) with a selling price of 10 cents / kWh, so this waste-to-energy-to-exports is very high margin business.
Pellet Plant, Biomass Power, Coconut processing in Surigao.
Pellet plant makes FSC pellets for ex...
Provides modern energy access to 5,000 households.
Reduces greenhouse gas emissions by 15,000 Tonnes of Carbon Dioxide per year.
Creates 200 new jobs during the lifetime on the project.
Improves the health conditions of 1,000 people.
Out of the total number of beneficiaries of the project, 0 are women.
Coconut husk waste currently pollutes rivers, beaches, fishing areas. Buying coconuts from local farmers increase the price they earn per coconut.
Replacing diesel gensets reduces pollution, reduces reliance on imported fuel, and reduces the production cost of energy
Anders Haagen, CEO
· Sustainable Farming, Finance,