Clean Cookstove Sustainability for Indonesia

Team 16

Biokraftstoffe

Background

Biokraftstoffe Project

Key Partner

Business Model

CPO chain

Project detail

Customer Acquisition & Retention

Organization Structure

Financial Projection

Menu of The Day

Background

Biokraftstoffe Project BSH Home Appliances

Fast Food Restaurant

User

BioFuel Stove

Green Company

Reduce Used Oil

Key Partners

Charity Program: 1 euro cent from the first 7.5

million BSH unit sold in Europe from non cash transaction

Used Oil Suppliers

Used oil will be provided by modern and traditional food chain and food

processing companya (398 KFC and 120 MCD nation wide)

CPO Company

Astra Agro Lestari has the largest planted CPO area in Indonesia.

Approximately 125,000 ha

Cost Structure Revenue Stream

Business Model

1. Stove manufacturing cost 2. Cookstove price subsidy 3. Operational cost 4. CDM registration and audit fee

1. Partnership program 2. Cookstove , used oil and preheating

material sales 3. VER Credits

CPO Chain

with total production 2.160.000 ton CPO/year, this company indirectly

responsible for used oil as the waste of CPO Usage

B/S/H/ Europe Charity Program

=

2,579 Free Unit Protos/year for Indonesia

Reduce 2,776 ton CO2/year or Plant 102,460 trees/year

1 cent Euro

+

Project Location Majalengka, West Java

32%

52%

9%6% 1%

Education BackgroundUneducated

Elementary School

Junior High School

Senior High School

D3/S1

Large Area: 1.204.24 km2 divided into 23 districts. Total Populations: 1.153.442 Considerations: 1. Poorly educated (See diagram) 2. Low economic level (20 percent of 12 million poor people in West Java,

located in this rural areas) 3. High unemployment (7.83% of total labor force)

CDM AMS-II.G Project Scenario

Drop 8,000 Protos in 5 years

0

29,278

62,216

98,814

139,071

75,000

13,514 13,514 13,514 13,514 13,514 0

25000

50000

75000

100000

125000

150000

0 1 2 3 4 5

in €

(Eu

ro)

Year

Revenue and Cost from CDM AMS-II.G

Revenue

CDM Fee (Initial and Annual)

Baseline

Scenario

(tCO2/year)

Number of

Protos

Emission

Reduction

(tCO2/year)

Year 1 4,416 1,600 1,722

Year 2 4,968 3,400 3,660

Year 3 5,520 5,400 5,813

Year 4 6,072 7,600 8,181

Year 5 6,624 10,000 10,764

Customer Acquisition

Sentra Gorengan Merchants Households Ex Users of Gas Stove

Ex Users of Kerosene Stove Existing Users of Wood-fire stove

Verification (Survey and Interview)

Promote/ Offer Protos to Users

Offer Partisipants to Fill out Application Form

Educate Partisipants in Monthly Arisan

Filtering process

Hotels Food stall

Restaurant Fast Food

Storage

Used oil

DistributionColoring process

CDM AMS-I.H Project Scenario

0 0

23,097

36,683

51,628

67,932

75,000

13,514

13,514 13,514 13,514 13,514 0

20,000

40,000

60,000

80,000

0 1 2 3 4 5

in €

(Eu

ro)

Year

Revenue and Cost from CDM AMS-I.H

Revenue

Fee (Initial and annual)

Baseline

Scenario

(tCO2/year)

Number of

Protos

Emission

Reduction

(tCO2/year)

Year 1 710 1,600 639

Year 2 1,510 3,400 1,359

Year 3 2,398 5,400 2,158

Year 4 3,374 7,600 3,037

Year 5 4,440 10,000 3,996

Used Oil Source

398 stores national wide

239 stores Java only

24 targetted store

9,000 L/year/store

214,290 L/year oil supply

1000 L/day

180,000 L/year Oil Supply

Purchase Price for Suppliers

Rp. 1,800/ Litre

KFC Fast Food Chain Sentra Gorengan Majalengka

Used Oil Supply Target

Used Oil Suppliers Year 1 Year 2 Year 3 Year 4 Year 5

KFC (Litre/Year)

214,920 429,840 644,760 859,680 1,074,600

Sentra Gorengan Majalengka

(Litre/Year)

180,000 198,000 216,000 234,000 252,000

Total Used Oil Supply (Litre/Year)

394,920 627,840 860,760 1,093,680 1,326,600

Total Oil Needed (Litre/Year)

240,000 495,000 750,000 975,000 1,200,000

CDM Project Timeline

Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

AMS ii-G Proposal & Approval

CER Claim

CER Claim

CER Claim

CER Claim

CER Claim

AMS I-H - Proposal & Approval

CER Claim

CER Claim

CER Claim

CER Claim

CDM Project Summary

Annual Revenue from CDM (based on 3rd year projection) =

Covering Cost Gap for 2,579 Unit Protos/year

note: Protos price is free

0

29,278

85,313

135,497

190,699

250,920

75,000 75,000

27,027 27,027 27,027 27,027 0

50,000

100,000

150,000

200,000

250,000

300,000

0 1 2 3 4 5

in €

(Eu

ro)

Year

CDM Revenue and Cost

Total Revenue from CDM

CDM Cost

Supply Chain

Biokraftstoffe Team

Used oil

Household

Small business

Protos, oil & preheating material

Modern and traditional food chain

Preheating material

Customer Retention

Protos Food Bazaar

Protos Membership Card

Protos Cooking Competition

Protos After Sales Service

Benefits of Using Protos Cookstove

How to Use Protos

How to get Used Oil and

spiritus

Requirement to Get Protos

Protos Cooking Bazaar

Protos Cooking

Competition

Protos Membership

Program

Protos Ambassador

Awards

Training and Event Materials

Pricing Strategy

Item Sold 1st year 2nd year 3rd year 4th year 5th year

Distribution of Protos Cookstove per unit

1,600 1,700 1,700 1,500 1,500

Price of Protos Cookstove per Unit

Rp. 49,000 Rp. 49,000 Rp. 49,000 Rp. 49,000 Rp. 49,000

Price of Used Oil per Litre Rp. 4,000 Rp. 4,268 Rp. 4,554 Rp. 4,859 Rp. 5,185

Price of Spiritus per Litre Rp. 9,000 Rp. 9,603 Rp. 10,246 Rp. 10,933 Rp. 11,665

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

16,000,000,000

0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 3.25 3.5 3.75 4 4.25 4.5 4.75 5

Rp

Years

Break Event Point

Revenue

Total Cost

Financial Projection

5 years project: NPV = € 248,365 IRR = 50 % BEP = Q2 year 2

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 177,626 349,471 572,883 841,575 1,161,502

EBIT (24,467) 18,116 89,152 184,674 297,634

(50,000)

150,000

350,000

550,000

750,000

950,000

€(E

uro

)

Revenue and EBIT

Conclusion

The project will be runned by Biokraftstoffe Team based on Partnership with BSH, Astra Agro Lestari and Oil Suppliers

All activities are under consideration of CDM AMS-II.G and CDM AMS-I.H Implementation.

3 Main Projects :

1. Distribute 10.000 unit protos in 5 years in Majalengka, West Java;

2. Provide and Guarantee Supply of used oil as fuel;

3. Provide Supply of spiritus as preheating materials.

By 5 years projection, We believe to see result:

NPV: Positive; IRR for 50 %; BEP: Q2 Years 2

Reference

All images are used under “fair use” and obtained from the public domain. They are the property of the respective copyright holders

Photos Credits www.slideshare.net www.flickr.com www.istockphoto.com

Websites http://cdm.unfccc.int/

http://www.carbonindependent.org/sources_home_

energy.htm

Power Point, Pdf and Excel CDM_Methodology_Booklet 2010.pdf Indocement-Experience-in-the-Plantation-of-Jatropha-Curcas by Kuky Permana, HR Manager of

Indocement.pdf Shell Sustainability Report 2010.pdf Bogor Agricultural University - Masa Depan Pengembangan Jarak Pagar di Indonesia.pdf EB51_repan18_AMS-II.G_ver02.pdf EB55_repan28_AMS-I.G_ver01.pdf EB55_repan29_AMS-I.H_ver01.pdf Business Plan Prase1.pdf Protos BP Competition 8 Mar '11.pdf Protos Case Study.pdf powerpointcookbook-090809173153-phpapp01 transport-carbon-footprint-calculator.xls CO2-calculator-EFN.xls