Organisation: Simultaan B.V.

Cycle: 2018 International

Type: Climate mitigation

Sector: Renewable energy

Status: Shortlisted

Stage: Pilot ready

 

Requested input: Simultaan B.V. is looking for investors who are interested to invest in their work in the bio-energy field. Via Momo4Climate they want to source capital. For funding they need € 0.7 to € 0.9 million. Revenue in the first 5 years is aimed at € 6.5 – 7.5 million, with an interest of 8% and shares of ROI 12-15% after two years. Furthermore, they are looking for specific expertise in the installation of the wood pellet factory. This expertise should be on the recipe of available forest resources in combination with sawdust, etc. In some industries adjustment of fuel installations have to be done. Although this knowledge is available from Indian companies, help and expertise from Dutch/European parties is very welcome.

Nepal’s economic and social development is being hampered by its inadequate and dirty energy supply. The country does not have its own reserves of gas, coal or oil. Simultaan B.V. takes this as a challenge as well as opportunity to help develop the energy sector of the country by introducing Biomass Pellet as the sustainable substitute of all other sources of energy currently being used in Nepal thus enhancing the access to clean energy for poor and marginalised sections of Nepalese society.

In addition, this approach will help the industrial sector to substitute energy replacing or reducing the imported coal and fossil fuel. These traditional fuels cause a considerably part of CO2 pollution in Nepal. Every ton of pellets used instead of oil usage will reduce CO2 emissions by about 1.5 tons. Thus, production of pellet helps to minimise greenhouse gas impact. Using pellet in households will help to reduce deforestation. As pellet are smokeless, this will make kitchens smoke free and improves family or personnel health hazards caused by smoke.

Nowadays the kiln of cement factories are using coal imported from India and South Africa. There is strong willingness amongst cement factory owners to transform the composition of fuel they are currently using. Provided there is a sustained supply of an alternative fuel.  In the initial phase, they prefer mixing the pellet with coal, and later if proved successful, will totally transfer into pellet. The factories, however, require assurance from pellet producers for a sustained supply. Similarly, brick factories, tea industry, restaurants and other industries with boilers and households (cook stoves working with wood pellets) are willing to use the product of Simultaan. Pellet production will be done at commercial scale and Simultaan will be able to have a positive EBIT within two years. Investors will get a return on their investment of 12% to 15%. The company will be a joint venture of Simultaan B.V. in the Netherlands (who is 100% owner of the Nepali company Charge Nepal Pvt. Ltd.) and Bakas Renewable Energy Pvt. Ltd. in Nepal. The owners of Bakas have a good track record in the Hydropower sector in Nepal.

Simultaan B.V. will be the first who is able to produce wood pellets in large quantities in Nepal. Herewith they are able to reach the pricing which is needed to be competitive with coal and fossil fuel, which is used now it high volumes.