puerto triunfo project considerations for combined oilseed crushing and biodiesel processing plant
TRANSCRIPT
2
Paraguayan Plant Ideal climate/excellent feedstock availability Plant enjoys private sector and political
support Plant produces positive socioeconomic
impact creating jobs and additional exports Plant creates value added downstream
exports Ready access to foreign commodity markets Paraguay offers attractive tax structure Labor is educated and relatively inexpensive Low cost green electricity
3
Ideal Climate/Expandable Agricultural Base
Soybean yield/acre equal to or greater than Iowa
Over 70 Inches of rainfall annually in immediate area of plant
3 crop cycles per year
Large modern farming complex
Significant (former cotton) acreage lies fallow
4
Paraguay shares the biggest fresh water deposit in the world: The Guarani Aquifer
Paraguay river
Paraná river
Pilcomayo river
Source: Instituto Geográfico Militar - IGM
Extremely Large Hydrographic Basin
5
Economics
Crush: Significant value in crush spread
Oil: Crush creates low cost oil for biodiesel
Meal: Meal provides almost 50% of site
revenue
Biodiesel: Significant competitive advantage
vs. North American feedstock model
Project Revenue: $690 Million + per year
6
Site
At epicenter of oilseed production in
Paraguay. 4 Million metric tons (4 x plant
requirement) grown within 80 miles of the
plant.
Local growers realize logistics benefit
Ready access to world markets via Parana
river
7
Site Advantages, Puerto Triunfo 62 % of oilseed in country grown
within 80 miles of site
8 Farmers Cooperatives nearby
Good feeder road system in place
Low cost hydro-electric power at 2.78 miles from the site
Nearest existing crushers:
100 miles
167 miles (land-locked)
40 miles (smaller land-locked)
Trucking savings for producer
Excellent product insertion point into Mercosur (5 country free trade agreement)
8
Markets: Mercosur and World Markets
Site: Paraná River Barge access to:
A. RosarioB. Buenos Aires
Barge delivery to Mercosur countries
(tariff free) Ocean transport
worldwide
9
Extremely Favorable Tax Environment (Among the lowest in the world)
11.30%14.50%
15.70%17.00%
18.60%20.40%
21.40%
25.30%25.60%
31.60%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Austra
lia US
Japan
Brazil
Argen
tina
Chile
Urugu
ayIn
dia
Boliv
ia
Parag
uay
Sources: Organization for Economic Co-operation and Development (www.oecd.org) Direccion Nacional de Estadisticas, Encuestas s y Censos (www.dgeec.gov.py)
10
Clean Hydroelectric Power Cost Advantage
$77$71
$20
$37
$50 $51
$18 $18
$11
$0
$10
$20
$30
$40
$50
$60
$70
$80
Co
st
pe
r M
eg
aw
att
Cemig
(Br)
CPFL (B
r)
COPEL (B
r)
UTE (U
y)
CGE (Ch)
Chilec
tra (C
h)
Edela
p (A
r)
Edeno
r (Ar)
Ande
(Par
agua
y)
11
Job Creation & Feedstock Job Creation
250 jobs created in construction phase 50 permanent jobs created in plant operations
Current Feedstock Soy Canola Sunflower
Future Feedstock Jatropha Castor Bean
12
Paraguayan GovernmentFinancial Stability
0
0.5
1
1.5
2
2.5
U.S
. D
ollars
(b
illio
ns)
2002 2003 2004 2005 2006 2007est.
External Debt International Reserves
Source: Banco Central del Paraguay