1 CLEAN ENERGY GENERATION in HONDURAS WITH BIOGAS TECHNOLOGY
2 TABLE OF CONTENTS Company Background Location. Team.Business Opportunities with Germany. Electricity Market in Honduras. Agroenergy Business Model. Economic and Social Issues. Social and Environmental Issues. Project Strongholds. Contact Information.
3 COMPANY BACKGROUND Agroenergy Solutions, S.A is a clean energy company founded in 2014 as an Special Purpose Corporation (SPC) in Honduras to develop biogás projects using cultivated Elephant Grass as feedstock. The idea was born after Mr. José Joaquin Rosales a local entrepreneur and promoter of clean energy development, succesfully developed an hydropower plant in its family farm in Patuca, Olancho. With the same intention in mind he brainstormed two more clean energy projects to take advantage of the untapped resources leading to the foundation of Agroenergy Solutions and Patuca Solar Farm.
4 LOCATION The Project is located in Honduras, Central America, at the outskirts of the town of Patuca, Olancho in the eastern part of the country at about 100 kilometers away from the city Danli. The predominant activity in the área are cattle farm. Agronergy
5 AGROENERGY TEAM José Joaquin Rosales.José Joaquín, is the company founder. A graduate from Zamorano School of Agriculture in Honduras with a Bsc and Master in Agricultural Economics from the University of Georgia and Mississippi State University in the USA. He has a working experience of more than 22 years in agribusiness, management, finance and development projects of different sizes. He is also founder of Ecoenergia,S.A (Hydropower plant in comercial operations since august 2014) and Photovoltatic company located also in the same farm. Raynel Rueda. Raynel is an Electrical Engineer with MBA graduated in the National University and in Honduras with more than 20 years experience as electrical engineer, manager of several hydropower plants, General Manager of a 20 MW coal based power plant, and founder of several hydropower plants that he has designed, builded and currently operates in different parts of Honduras.
6 View of the river near theAGROENERGY TEAM José Joaquin and Raynel are Business Partners in Ecoenergia (Rio Guineo Hydropower Plant of 1.1MW in commerical operation since August of 2014, located in the same farm in Patuca, owned owned by Mr. Rosales and his family. The Rio Guineo Project was developed as a run-of-river hydropower plant and is providing clean energy with a Kaplan Turbine to the town of Patuca using the nearby grid (500 meters away). AERIAL VIEW of Rio Guineo Hydro View of the river near the reservoir
7 BUSINESS OPPORTUNITY WITH GERMANYA pilot project as the one proposed can serve as “show case” project for a German Company interested in doing business with biogas technology in Honduras and the rest of Central America. The proposed model allows for a “win-win” scenario, where risks are mitigated. We as local partners will offer our local business expertise, resources, land, logistics, and “due diligence” needed to license the Project. The German party offers its expertise, resources and technology in similar biogás projects to achieve a smooth project implementation. Our plan is to replicate the model in other parts of Honduras and Central America as business partners to reach levels above 10MW installed or more.
8 BUSINESS OPPORTUNITY WITH GERMANYUnlike conventional RE technologies such as; solar, hydro and wind, Biogas Technology development in Honduras is lagging behind. Germany is at the world forefront in this type of technology where projects as the one proposed by Agroenergy are already operating succesfully. Honduras has an unsatisfied demand for “base load power” that can only be delivered by green house gas emiting termal plants on a reliable basis due to climate change effects on rainfall patterns affecting hydropower generation.
9 ELECTRICITY MARKET IN HONDURASELECTRIC POWER GENERATION IN HONDURAS (August 2016) ELECTRIC POWER GENERATION IN HONDURAS ( in GWH as August 2016). Technology GWh % Thermal 384.1 49.90 Hydro 202.75 26.34 Solar 76.1 9.89 Biomass 42.9 5.57 Wind 41.4 5.38 Imports 22.53 2.93 Total 769.78 100.00 Source: Worldmeters. com
10 ELECTRICITY MARKET IN HONDURAS.Roughly 50% of Energy Generation in Honduras is from Fossil fuels wich allows important growth in renewables. Total demand is about 1550 MW and grows at an average rate of 4% per year. The country changed its legal framework in July 2014 to the spot market system. Population of Honduras is 8.2 million inhabitants and the Central America as a whole is 46.7 millions market. The Central American region is interconected. Source: Worldmeters. com
11 ELECTRICITY MARKET IN HONDURAS.Under the new legal framework electricity can be sold on the “spot market” or to private offtakers under contracts with a minimun term of 10 years. Renewable Energy Projects are exempt from import duties on equipment, sales and income taxes during the first 10 years of operation. Demand for “base load” power being fullfilled at the present mostly by “bunker driven” thermal plants. High grow of solar, wind and run-of-river hydropower power plants in recent years.
12 AGROENERGY BUSINESS MODEL
13 ECONOMIC AND FINANCIAL ISSUESProject total investment is estimated at US $9 million assuming a 2MW installed capacity. Annual revenues are estimated at US $1.8 million per year. Power Generation is estimated at 14,400 Mwh per year. Internal Rate of Return (Project) : 14.07% Payback: 7.7 years.
14 ENVIRONMENTAL AND SOCIAL ISSUESThe first phase of the Project is expected to generate at least 100 rural jobs due to Elephant Grass cultivation, harvesting, handling and proccessing activities. The Project expects to achieve a reduction of C02 emission reductions in the range of 10,800 per year. As byproduct the Project will produce aproximatelly 12,000 tons of biofertilizer (compost) to be utilized as fertilizer in the crops for food production and enhancing the soils. The proposed business model empowers rural communities under a distributed energy generation model in different parts of the country.
15 PROJECT STRONGHOLDS 1. MARKET Clear need of electricity and “base load” power due Honduras current energy matrix and growing demand secured with long term contracts. 2. TEAM Experienced team of local RE Project developers with a track record in clean energy project development and many years of experience in doing business in the region. 3. LOCATION The local developers have the ideal site to start a pilot Project with control to key resources as land, logistics, nearby grid etc to implement the Project as quickly as possible. 4. BALANCED BENEFITS The Project has important economic, social and envioronmental benefits including good returns, employment generation and carbon emission reductions wich make it sustainable in the long run.
16 CONTACT INFORMATION Jose Joaquin Rosales Address and contact: Villa Sta Isabel Casa no.4 Colonia los Angeles, Tegucigalpa, Honduras. Phone: (office) (mobile).